BUDGET NEGOTIATIONS sour — PENSION SWEETENER bill stalls — PLASTIC BAG ban passed

By Matt Friedman (mfriedman@politico.com; @mattfriedmannj):

There’s no deal. And it’s not looking good.

Story Continued Below

Despite a Supreme Court decision that may give the state some unforeseen revenue and some breathing room in negotiations, Gov. Murphy, Senate President Sweeney and Speaker Coughlin are still deadlocked on the budget.

What looked like signs of progress earlier in the day, with a lengthy meeting of the men in the morning, collapsed after a short meeting in the afternoon.

You know things are bad when Murphy takes his message straight to the public and compares his fellow Democrats to his Republican predecessor.

“I got elected to come here and crack the back of this idiocy. Of kicking the can, phantom numbers, band-aids, toothpicks. Enough,” Murphy said at a press conference.

The Senate and Assembly passed their own budgets that Murphy has vowed to veto. They’re all hurtling towards a shutdown, but they’ve got another week to avoid it — and in this context, that’s a long time.

Sweeney had some words of his own for Murphy: “It’s not Goldman Sachs. We’re not going to be told what to do. We want to be partners. We’re going to be equal partners.” .

HAPPY BIRTHDAY — AP reporter Jill Colvin, Assemblywoman Murphy staffer John J. Mulholland Jr., NJ School Boards Association’s Chris Jones, former North Bergen municipal candidate Ravi Varma. Saturday for Assemblyman Pedro Mejia. Sunday for Assemblyman Bruce Land, GOP consultant Ed Traz. Missed Thursday: Essex County GOP Chairman Al Barlas

** A message from KeepNJDocs.org: NJ is losing newly trained primary care physicians at a staggering rate. Over 60% of them are taking their state-supported medical training and leaving NJ, unable to tackle medical school debt if they remain in our unfriendly practice environment. Visit KeepNJDocs.org to learn what we can do to stop this. **

WHERE’S MURPHY? No public schedule

QUOTE OF THE DAY: “I think if there were about two or three seasoned, mature women in that room, I know things would come out differently. … I’m only kidding. Those tall Irish guys did a really nice job.” — State Sen. Loretta Weinberg (D-Begen) on budget negotiations

WHAT TRENTON MADE

THE BUDGET — “New Jersey lawmakers pass doomed budget after talks fall apart again,” by POLITICO’s Ryan Hutchins, Katherine Landergan and Matt Friedman: “New Jersey hurdled toward a state government shutdown on Thursday after renewed budget talks between Gov. Phil Murphy and legislative leaders ended in discord, prompting lawmakers to go ahead and pass their own budget — one likely to meet the governor’s veto pen. The confrontation among Democrats was buttressed by harsh words, with Murphy comparing his fellow party members to Republican predecessor Chris Christie and the lawmakers accusing the governor of being “completely dishonest with us. In a series of narrow votes Thursday evening, the state Senate and Assembly passed a $36.5 billion budget and a long list of other related bills, including one that would give New Jersey the highest corporate tax rate in America before sunsetting in two years. The budget and several other related proposals passed with the minimum number of votes needed in each house as some prominent Democrats protested, either refusing to vote ‘yes’ or outright voting against the plan. The support of two Republicans was required to pass the budget in the Senate, where dozens of lawmakers, staff members and journalists watched in silence as leaders struggled to get the final vote.” Read the report

—Sweeney: “’I’ve never seen an administration with such a lack of focus’” Read the report

—“Constitutionally, Gov. Phil Murphy is in a corner on the budget | Mulshine” Read the report

—“How would N.J. school funding revamp affect your school district?” Read the report

PENSION SWEETENER— Bill to sweeten some elected officials’ pensions stalls in Assembly, by POLITICO’s Matt Friedman: A bill that would improve the pensions of some elected officials was pulled from the Assembly’s agenda Thursday and may not advance any time soon. Assemblyman John McKeon (D-Essex), the bill’s sponsor, said he asked that the bill be removed from the chamber’s voting session because the Office of Legislative Services could not produce an estimate of how much it would cost. Asked if the bill was dead, McKeon said “from my perspective it is.” The bill, NJ A4176 (18R), which came under fire from Republicans and the largest state workers unions, would allow elected officials who are already receiving pensions for elected offices they previously held to re-enter the state pension system for their current jobs, as if they never left the system — as long as they have 15 years of continuous service. Read the report

SCHOOL FUNDING — Legislature sends landmark school funding bill to Murphy, by POLITICO’s Linh Tat: The state Legislature on Thursday passed landmark legislation that would, for the first time in a decade, significantly alter how the state distributes money to school districts. The bill now heads to Gov. Phil Murphy, but there’s no guarantee he’ll sign it. The governor said Wednesday that while the plan presents a “very good path” forward, he would not agree to any school funding changes unless the Legislature sends him a state budget with “sustainable” revenues. The measure, NJ S2 (18R) / NJ A2 (18R), sponsored by Senate President Steve Sweeney and Assembly Speaker Craig Coughlin, reflects changes to school funding Sweeney has championed for years, including the immediate elimination of a cap that restricts how much new aid school districts with growing enrollments can receive and a multi-year phase-out of so-called adjustment aid from districts that are overfunded by the state. Specifically, the state would reduce adjustment aid by 5 percent in Fiscal Year 2019, which begins July 1, then by 8 percent, 10 percent, 14 percent, 18 percent, 21 percent and 24 percent in subsequent years. Read the report

—Camden Education Association President Keith Benson: “Shame on Norcross Dems, Camden schools leader” Read the op-ed

IT’S AS IF CHRIS CHRISTIE WAS NEVER HERE — “N.J. Democrats are battling over budget because Murphy wants to be president, top Republican says,” by NJ Advance Media’s Brent Johnson:” A top Republican state lawmaker says there’s a reason Gov. Phil Murphy is battling with his fellow Democrats over the state budget: He’s planning to run for president. State Assembly Minority Leader Jon Bramnick said Murphy has to be talking to a ‘national audience’ as he continues to push of this tax hikes despite opposition from top state lawmakers who hail from his own party. ‘He must be talking to somebody,’ Bramnick, R-Union, said during a news conference with top New Jersey Republicans in Trenton on Thursday morning to highlight the budget fight. ‘He’s not talking to Republicans, he’s not talking to Democrats, he’s not talking to New Jersey taxpayers. He’s talking to a small group of national Democrats.’” Read the report

GIVE ME LIBERTY TOWNSHIP OR GIVE ME DEATH! — “Merging 191 of N.J.’s smallest towns? It’s on the table. Here’s which ones would get the ax,” by NJ Advance Media’s Stephen Stirling: “Spring Girt? Tetermoon? Frelingmuchy? If a group of tax experts and lawmakers get their way, nearly 200 of New Jersey’s 565 towns could be slammed together as a potential cost-cutting measure to help ease the state’s crushing tax burden. It’s one of the more than 60 ideas being floated by a high-powered panel led by state Senate President Steve Sweeney and dubbed the Economic and Fiscal Policy Working Group. The collective is working on measures that could ease the burden facing state residents after federal tax reforms limited property tax breaks used by many in the state. One of the more dramatic proposals being discussed by the group would be to force towns with populations of less than 5,000 people to merge with an adjacent town.” Read the report

—“Unintended political consequences,” by New Jersey Globe’s David Wildstein: “Senate President Steve Sweeney’s non-plan plan to merge 191 of New Jersey’s smallest municipalities could have some unintended political consequences: 1. Legislative Redistricting: Small towns are integral to creating districts that are equal in size – the state Constitution requires each of the forty districts need to be nearly equal in population — within 5% of the ideal number. Small towns are necessary to make that work. Without these 191 smaller municipalities, it would be almost mathematically impossible to draw equally sized, compact districts without forcing some towns (beyond Newark and Jersey City) to be split into different legislative districts.” Read the report

EXPENSIVE STATE — “N.J. teacher pay among highest in U.S. But some say that paycheck isn’t enough to survive,” by NJ Advance Media’s Erin Banco: “New Jersey has the fifth highest teacher salaries in the nation, but some educators in the Garden State are still struggling to get by, according to an informal survey by NJ Advance Media. Teachers from across the state said they are barely able to afford rent without working multiple jobs … New Jersey has the fifth highest teacher salaries in the nation, but some educators in the Garden State are still struggling to get by, according to an informal survey by NJ Advance Media. Teachers from across the state said they are barely able to afford rent without working multiple jobs.” Read the report

TURN ON THE AC — “Ocean Resort Casino in Atlantic City gets gambling license 1 week before opening day,” by NJ Advance Media’s Alexis Johnson: “With just a week left to spare before Ocean Resort Casino’s planned June 28 grand opening, the sprawling venue received its gaming license to accept bets from the state Casino Control Commission. The two-day hearing featured Ocean Resort owner Bruce Deifik’s testimony. He spoke for nearly two hours Wednesday about his plans for the former Revel casino and its role in Atlantic City’s resurgence.” Read the report

TIME IS MOVING REALLY, REALLY SLOW — “Will weed be legalized in N.J. this year or what? Here’s where we stand,” by NJ Advance Media’s Payton Guion: “The big, new legalization bill is dead So far this year, two primary marijuana ideas have dominated discourse in New Jersey. The first is an expansion of the state’s medical marijuana program, which Murphy called for earlier this year in an executive order. The other is legalizing the possession and personal use of small amounts of marijuana for adults at least 21 years old, along with a regulated commercial market. Earlier this month, state Sen. Nicholas Scutari, a Union County Democrat who has been leading the push for legal weed, introduced a plan that tried to do both, upsetting lawmakers and advocates alike. It now appears that Scutari’s plan is a non-starter. Sen. Joseph Vitale, D-Middlesex, and three others familiar with efforts to push marijuana legalization through the Legislature said Scutari’s merged bill was not moving forward, as reported exclusively by NJ Cannabis Insider.” Read the report

NEWSPAPER FORGIVENESS BILL — Assembly passes bill to boost local media, by POLITICO’s Matt Friedman: A year and a half ago, the state Legislature nearly passed a bill that threatened to cripple local news in New Jersey. On Thursday, the Assembly passed a bill that seeks to boost it. The bill, NJ A3628 (18R), which passed 54-22, would establish a nonprofit organization, called the New Jersey Civic Information Consortium, made up of five public universities that would issue grants to “support news and information that benefit the State’s civic life and meet the evolving information needs of New Jersey’s underserved communities.” “Sometimes all it takes for someone to become an active participant in improving his or her community is a news package that identifies a problem and sparks a passion for finding the solution. But if people don’t know what’s wrong, they can’t make it right,” Assemblyman Paul Moriarty (D-Gloucester), a co-sponsor of the measure, said in a statement. Read the report

NO DIGGITY. I GOT TO BAG IT UP — ”Legislature passes bill to impose 5-cent fee on plastic, paper bags,” by POLITICO’s Danielle Muoio: State lawmakers this evening passed a bill to place a 5-cent fee on single-use plastic and paper bags, after determining the revenue the fee would generate would be used to plug holes in their proposed budget. The bill, NJ A3267 (18R), passed the Assembly 41-32, getting the minimum votes needed for passage. The Senate passed the measure 23-16. Lawmakers estimate the bag fee would generate $23 million in the upcoming fiscal year, which begins July 1. Although the bill stipulates that the majority of the revenue should be used for lead abatement, the Legislature’s proposed $36.5 billion budget would divert all of the money to the general fund. The bill has languished for years, but was fast-tracked this week as the state’s top Democrats looked for additional revenue streams. Legislative leaders have opposed Gov. Phil Murphy’s two biggest revenue raisers, a millionaire’s tax and restoration of the state sales tax to 7 percent. Together, those taxes would produce $1.4 billion in revenue. Read the report

—“Video: News 12’s Brian Donohue goes in search of a bog turtle” Watch the video

THE TRUMP ERA

CHRISTIE ALUMNI IN THE NEWS — “Young Trumpies Hit D.C.: … And D.C. hits them right back,” by Daniel Lippman and Ben Schreckinger in Politico Magazine’s July/August Cities issue: “When Matt Mowers moved to Washington in November 2016, he wasn’t expecting a hero’s welcome. The young political operative had worked for Donald Trump’s campaign in New York, where you can hardly walk down the block in many neighborhoods without spying the words ‘F*** Trump’ scrawled somewhere on the streetscape. But last year, his new neighbors in Dupont Circle, the upscale area known for its stately townhouses and history as a hub of gay life in the District, pulled some moves that surprised even Mowers, by then chief of staff at the State Department’s global AIDS office.

“In the run-up to Mowers’ first Halloween here, one of his neighbors strung up a skeleton and a pumpkin next to each other on a tree. The pumpkin had a sign: ‘Now kids, just because you’re orange doesn’t mean you’re related to him!’ With the dangling skeleton was a more menacing note: ‘Donald Trump’s EPA director.'” https://politi.co/2MgeV5P

IMMIGRATION — “20 immigrant children have arrived in N.J. in the last 30 days. Here’s what we know,” by NJ Advance Media’s Kelly Heyboer: “Twenty immigrant children have arrived in New Jersey within the past 30 days since the implementation of President Trump’s “zero tolerance policy”, including 3 who were separated from their parents at the border, according to a social services agency based in Camden. The spokesman for Center for Family Services, Jen Hammill, said the other 17 children were unaccompanied minors. She would not provide the ages of any of the children or the location of the shelters in South Jersey. Overall, the agency is currently housing a total of 27 children. The majority are living in one facility and others are in a separate location, which includes parents and guardians, according to Hammill. She noted that over the past year the agency has housed a total of 90 children, the vast majority crossing the border as unaccompanied minors. ‘Family reunification is our primary goal,’ Hammill said.” Read the report

PENOSI — “Van Drew will oppose a Pelosi speakership and a renewed push for North Jersey casinos,” by The Press of Atlantic City’s John DeRosier: “Democratic state Senator and congressional candidate Jeff Van Drew said on Thursday that, if elected to Congress this fall, he will oppose the continued leadership of Nancy Pelosi in the U.S. House of Representatives. ‘We need to change the leadership in Washington. After more than a decade of leading House Democrats as Speaker and Minority Leader, Congresswoman Nancy Pelosi will not have my support as leader in the next session,’ Van Drew said in a statement. ‘After this election, I will carefully consider the potential candidates and support the person who will best stand with us in our fight for South Jersey families. Right now, I’m focused on earning the support of voters in the 2nd district, and the many pressing issues facing South Jersey families and our great country.’” Read the report

—“GOP chairman slams Grossman” Read the report

—“Rutgers economics chair talks tariff impacts on NJ’s economy” Read the report

LOCAL

WHAT IS GOING ON? — “Englewood school bus crash leaves 25 children, 7 adults injured,” by The Record’s Keldy ORtiz: “An Engelwood school bus with 25 children and seven chaperones aboard was rear-ended in Englewood Thursday, police said. It was coming back from a field trip. The passengers’ injuries were minor, but all were being taken to local hospitals, Police Capt. Timothy Torell said. The crash happened on Knickerbocker Road and West Hudson Avenue around 4 p.m., Torell said.”

WOMAN HAD TWO JOBS — “Woman says she lost two jobs because of Democratic chair fight,” by The Jersey Journal’s Terrence T. McDonald: “West New York’s former health officer alleges in a new lawsuit that she was fired from that job and lost a second job in Guttenberg as part of the intra-Democratic war related to the recent county Democratic chair fight. Gina Miranda Diaz says she became a pawn in the battle between West New York Mayor Felix Roque, who was on one side of the chair fight, and North Bergen Mayor Nicholas Sacco and Guttenberg Mayor Wayne Zitt, who were on the other. Diaz is married to a top Roque aide. West New York’s anti-Roque commissioners voted to fire Diaz on May 17 and this month she was told by the town of Guttenberg, where she was a health officer under a shared-services agreement, that she was no longer needed, she says in the lawsuit, which accuses both towns and the three commissioners of violating her civil rights. Diaz filed the two-count lawsuit in Hudson County Superior Court on Monday. She names West New York; West New York Commissioners Cosmo A. Cirillo, Margarita Guzman and Gabriel Rodriguez; and Guttenberg as defendants.” Read the report

—“West New York commissioners fire Fonseca as spokesman, hire Vision Media” Read the report

CARL REINER IS STILL FUNNY — “N.J. politician says only teachers who carry guns should get hired,” by NJ Advance Media’s Rob Jennings: “Raritan Township Committee member Louis Carl Reiner argued that state lawmakers should approve legislation ‘making concealed carrying of a firearm mandatory as a condition of employment,’ in a five-paragraph letter posted by TAP Into Flemington/Raritan. ‘Passing likeminded legislation at the federal level in concert with state would be the best and most effective way to end ‘gun violence’ in America,’ Reiner wrote in his letter, referencing the mass shooting at a Parkland, Florida high school. No bill mandating gun carry permits for teachers exists in Trenton — and, even if one did, it would have no chance of gaining approval from the Democratic-controlled Legislature and Gov. Phil Murphy, who last week signed six gun control measures into law. New Jersey Education Association spokesperson Steve Baker, when asked about Reiner’s letter, said, ‘It barely deserves a response, except to say it is completely absurd.’ Reiner, contacted Wednesday by NJ Advance Media, stood by his proposal and stated that he believes all teachers, and also administrators, should be required to obtain carry permits.” Read the report

THEY’RE TRYING TO FORCIBLY CONVERT KIDS TO ISLAM, SAYS GROUP NAMED AFTER MAN WHO BURNED HERETICS — “Mom says, N.J. school tried to make my kid Muslim. Judge says, go to court,” by NJ Advance Media’s Allison Pries: “A federal judge on Wednesday refused to dismiss a lawsuit filed by a Chatham mother who says the school district forced her son to watch Islamic conversion videos and ignored the study of Christianity and Judaism. Libby Hilsenrath filed the lawsuit, on behalf of her child (identified as C.H. in the suit), against the Chatham School District and Board of Education, as well as the superintendent, assistant superintendent, middle school principal, Social Studies supervisor, and two Social Studies teachers. Judge Kevin McNulty said in the decision, on a motion filed by the school district’s attorney to dismiss the lawsuit, that the ‘untested’ scenario merits further exploration … ‘This ruling comes as no surprise,’ said Kate Oliveri, an attorney for the Thomas More Law Center who is handling the case.’” Read the report

—“Passaic judge now suspended without pay” Read the report

—“Rockaway Township Council hires 5 lawyers to fight mayor’s lawsuit” Read the report

—“Newark clergy call for action on Essex County foreclosure crisis” Read the report

EVERYTHING ELSE

THE CAR, NOT THE ANIMAL — “287 crash in Wanaque: Elizabeth school bus, Jaguar collide” Read the report

— “Rider University, buyer ink deal for Westminster Choir College” Read the report

—“Jury convicts Camden man in death of 8-year-old girl” Read the report

FOR MORE political and policy news from New Jersey, check out Politico New Jersey’s home page: http://politi.co/1JiYTDg

SUBSCRIBE to the Playbook family: POLITICO Playbook: http://politi.co/1phAeAC … New York Playbook: http://politi.co/1ON8bqW … Florida Playbook: http://politi.co/1JDm23W … New Jersey Playbook: http://politi.co/1HLKltF … Massachusetts Playbook: http://politi.co/1Nhtq5v … Illinois Playbook: http://politi.co/1N7u5sb … California Playbook: http://politi.co/1N8zdJU and our friends at POLITICO Brussels Playbook: http://politi.co/1FZeLcw … All our policy and political tipsheets http://politi.co/1M75UbX

** A message from KeepNJDocs.org: New Jersey is an unfriendly place for primary care – newly minted primary care physicians are fleeing the state at a staggering rate. Significant administrative burdens, low compensation, an emphasis on higher cost specialty care, massive medical school debt and ineffective loan redemption programs make NJ a highly unfavorable practice environment.

While other states retain over 60% of primary care residents, NJ exports over 60% of our medical residents, who take with them millions of dollars invested in graduate medical education by the state.

Without a strong primary care physician workforce, NJ patients suffer. Research shows adding more primary care physicians decreases mortality.

NJ voters agree. Eighty-eight percent believe that primary care leads to healthier patients, higher quality health care and lower costs.

Help ensure we’re making smart investments in our primary care physician workforce. Visit KeepNJDocs.org to learn what we can do to keep primary care in NJ. **