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♪♪♪

>>> WELCOME TO "REPORTERS

ROUNDTABLE."

I'M MICHAEL ARON.

WHY IS SENATE PRESIDENT STEVE

SWEENEY HOLDING UP THE

CONFIRMATION PROCESS FOR TWO OF

GOVERNOR MURPHY'S CABINET

OFFICERS?

THAT WAS THE BIG QUESTION AT THE

STATE HOUSE LATE THIS WEEK.

THEY'RE BOTH DEMOCRATS, RIGHT?

FORMER SUPERINTENDENT IS

MURPHY'S CHOICE FOR EDUCATION

COMMISSIONER.

FORMER OBAMA EDUCATION POLICY

ADVISOR ELLIS IS HIS CHOICE FOR

SECRETARY OF HIGHER EDUCATION.

MOST NOMINEES WERE APPROVED

EASILY IN COMMITTEE.

SWEENEY SAID HE WASN'T SATISFIED

WITH SOME OF THEIR STATEMENTS

AND POSITIONS.

WE ASKED HIM ABOUT THE SITUATION

ON THURSDAY?

>> THESE ARE TWO EXTRAORDINARY

INDIVIDUALS.

I DIDN'T SAY IT BECAUSE I DIDN'T

HEAR ABOUT IT BEFORE DAN'S

COLLEAGUE HAD HEARD ABOUT IT AND

HE PUT SOMETHING OUT TO THAT

EFFECT.

THERE'S NO REASON NOT TO CONFIRM

THESE FOLKS, BECAUSE WE HAVE TWO

AFRICAN-AMERICAN PHDs ON OUR

NOMINATED CABINET.

[ APPLAUSE ]

>> THE MOST DIVERSE CABINET --

[ APPLAUSE ]

>> IT IS THE MOST DIVERSE

CABINET EVER NOMINATED IN OUR

STATE.

IT'S THE MOST DIVERSE CABINET IN

THE COUNTRY.

I'M INCREDIBLY PROUD OF

EVERYBODY BEGINNING WITH MY

PARTNER TO THE LEFT.

I'M CERTAINLY PROUD OF THE TWO

OF THEM.

THEY'VE BEEN IN THERE WORKING

DAY IN AND DAY OUT AND CONTINUE

TO DO SO TODAY.

[ INAUDIBLE ]

>> I THINK IT SAYS NOTHING ABOUT

THE RELATIONSHIP, BUT THESE TWO

FOLKS NEED TO BE CONFIRMED.

I'M CONFIDENT THEY WILL BE

BECAUSE THEY SERVE IT.

>> SWEENEY TOLD NJ ADVANCED

MEDIA, I CAN'T BELIEVE HE SAID

THAT, IT HAS NOTHING TO DO WITH

RACE.

IT HAS TO DO WITH SCHOOL

FUNDING.

JOINING US TOM MORAN EDITORIAL

PAGE EDITOR OF THE STAR LEDGER.

MICHAEL HILL, CORRESPONDENT FOR

NJ TV NEWS.

KATIE JENNINGS HEALTH CARE

REPORTER FOR POLITICO NJ.

AND BRETT JOHNSON STATE HOUSE

RECORDER FOR NJ ADVANCED MEET

YA.

WHAT'S GOING ON HERE?

>> THE REAL SUBSTANTIAL FIGHT IS

ABOUT SCHOOL FUNDING.

THE SCHOOL FUNDING PLAN THAT

MURPHY PUT OUT THAT HAD AN

INCREASE BUT DIDN'T FIX WHAT

SWEENEY SEES AS WRONG WITH THE

STUNNING FORMULA.

IT HASN'T ADJUSTED WITH

CIRCUMSTANCES.

THEY HAVE MORE OTHER DISTRICTS

GROWING FAST AND ADDING

STUDENTS.

THEY GET NO MORE STATE AID.

THAT'S SEVERELY OUT OF WHACK.

IT'S HUNDREDS OF MILLIONS OF

DOLLARS.

THAT IS WHY SWEENEY IS BLOCKING

THESE NOMINATIONS.

IT'S REALLY A SYMBOLIC ACT.

CHRIS SURF WAS ACTING

COMMISSIONER FOR A LONG PERIOD.

IT'S AN OPENING SALVO IN THIS

FIGHT.

THE COMMISSIONER NOMINEE SAID,

WE'LL GET TO SWEENEY'S CONCERNS

ABOUT SCHOOL FUNDING IN SIX

MONTHS.

THAT'S AFTER THE BUDGET'S

PASSED.

HE WAS SAYING WE'RE NOT GOING TO

DO WHAT SWEENEY WANT THIS IS

YEAR.

>> MURPHY APPEARED TO CATCH

SWEENEY OFF GUARD WHEN HE TURNED

THIS INTO SOMETHING ABOUT TWO

AFRICAN-AMERICANS WITH PHDs.

DID HE TRY TO MAKE IT ABOUT

RACE?

>> THERE'S AN OPPORTUNITY FOR

THAT.

THERE'S ALSO AN OPPORTUNITY FOR

MURPHY SAYING THIS FOR

AFRICAN-AMERICAN LAWMAKERS AND

OTHERS IN THE LEGISLATURE TO

APPLY PRESSURE TO SWEENEY TO GET

THIS DONE.

WHAT BETTER WAY TO DO THAT TO IN

A SUBTLE WAY RAISE THE RACE

ISSUE?

>> I WONDER IF SWEENEY EVEN HAD

THAT THOUGHT GOING INTO THIS,

GEE, I'M TAKING ON TWO

AFRICAN-AMERICAN CABINET

OFFICERS.

I, WHO FOUGHT FOR JOHN WALLACE,

THE LONE AFRICAN-AMERICAN ON THE

STATE SUPREME COURT FOR YEARS

AND YEARS AND YEARS.

IT LOOKS TO ME LIKE THAT DIDN'T

OCCUR TO HIM WHEN HE TOOK THIS

POSITION.

>> I SPOKE TO HIM ALMOST TWO

WEEKS AGO.

THERE WAS A BUDGET HEARING IN

SOUTH JERSEY.

IN THE INTERVIEW WE HAD WITH

HIM, HE WAS ADAMANT ABOUT SCHOOL

FUNDING.

HE WAS NOT HAPPY THAT THIS

ACTING EDUCATION COMMISSIONER

WAS TALKING ABOUT DELAYING SOME

SOLUTION ON THE SCHOOL FORMULA.

I WOULD BE SURPRISED IF IT WAS

AN ISSUE WITH RACE THAT HE WAS

HOLDING UP THESE CONFIRMATIONS.

>> I DON'T THINK HE INTENDED IT

TO BE AN ISSUE ABOUT RACE.

BUT THE GOVERNOR TURNED IT IN A

WAY THAT PUT THAT ELEMENT INTO

PLAY.

KATIE, I HAVE A QUESTION FOR YOU

RIGHT HERE.

OH YES, IS THIS SWEENEY PLAYING

GAMES?

BECAUSE WE KNOW THAT RELATIONS

BETWEEN THE TWO OF THEM ARE

FROSTY.

OR IS THIS REALLY ABOUT THE

SUBSTANCE?

OR BOTH?

>> I THINK IT'S BOTH.

I THINK THIS IS POLITICAL

POSTURING.

SO THIS IS ABOUT SCHOOL AID BUT

IN THE BIGGER PICTURE ABOUT THE

BUDGET.

THEY BASICALLY HAVE A LITTLE

OVER TWO MONTHS TO HAMMER OUT

WHAT'S GOING TO GET THROUGH BY

JUNE 30th.

SWEENEY HAS TO STAKE HIS GROUND.

HE WANTS TO GET HIS PRIORITIES

IN AS WELL.

LOOK, SWEENEY IS THE POLITICAL

OPERATOR WHO'S BEEN THERE THE

LONGER.

IF MURPHY WANTS TO GET THIS

BUDGET PASSED THROUGH THE

LEGISLATURE, HE'S GOING TO HAVE

TO NEGOTIATE WITH SWEENEY.

>> I THINK IT'S GOING TO CHANGE

IN SWEENEY'S DIRECTION.

THE LEGISLATURE IS GOING TO FIX

SOME OF THESE PROBLEMS SWEENEY

WANTS FIXED.

THEN THEY'LL SEND THE BUDGET TO

MURPHY.

IF THE LEGISLATURE DOESN'T

PROVIDE THE EXTRA MONEY FOR

THESE DISTRICTS THAT ARE

OVERFUNDED, MURPHY CAN ONLY TAKE

MONEY OUT.

HE CAN'T PUT MONEY BACK IN.

I THINK SWEENEY HAS THE TACTICAL

SWEENEY ADDRESSED THIS, AS WAS

YOU AND I HAD THE CONCLUSION

THAT IF THAT HAD BEEN CHRIS

CHRISTIE UP THERE, HE WOULD HAVE

UTTERED FIGHTING WORDS AND THAT

MURPHY IS MUCH MORE A DIPLOMAT.

>> THAT WAS THE LEAD TO MY

STORY.

IT'S JUST THAT CHRISTIE WOULD

HAVE BEEN -- YES, SWEENEY, I'LL

GO RIGHT AT YOU.

MURPHY DOES THINGS A LOT MORE

SUBTLY.

IT'S A MUCH DIFFERENT

ATMOSPHERE.

THE BIG TALK IS THAT MURPHY AND

SWEENEY JUST DON'T GET ALONG.

IT HAS TO DO WITH A LOT OF

THINGS.

THEY DON'T TALK THAT OFTEN AND

THERE'S A LOT OF FROSTINESS

THERE.

IT PERMEATES EVERYTHING.

>> THEY BOTH BELIEVE THAT THE

PRESS IS OVERPLAYING THEIR

PERSONAL ANIMOSITY.

SWEENEY SAYS WE HAVE A REAL

DIFFERENCE ON SCHOOL FUNDING.

IT'S NOT PERSONAL.

I DON'T THINK THEY LIKE EACH

OTHER.

THAT'S CLEAR.

BUT I DON'T THINK SWEENEY WANTS

TO SPEND HIS LIFE FINDING WAYS

TO ONE UP MURPHY.

I THINK HE ACTUALLY WANTS TO

CHANGE THE SCHOOL FUNDING

FORMULA -- NOT THE FORMULA, THE

WAY MONEY IS A LOTTED.

>> MACK FRIEDMAN JOKINGLY WROTE,

I'M GETTING MY COT READY FOR THE

FOURTH OF JULY TO HAVE NEAR THE

STATE HOUSE WHERE I'M CANCELLING

MY VACATION OR SOMETHING LIKE

THAT.

ARE WE HEADED TOWARD SOME KIND

OF SHOWDOWN IN THIS BUDGET

SEASON?

>> I TALKED TO SOMEBODY FROM THE

CHAMBER OF COMMERCE LAST WEEK.

HE SAID YES, PREPARE FOR IT.

HE SAID WE ARE PREPARING FOR A

VERY LONG JULY 4th WEEKEND.

HE SAID, BECAUSE I DON'T SEE

THESE PARTIES COMING TOGETHER TO

RESOLVE THESE ISSUES.

>> LET'S LOOK AT HISTORY.

WHEN KORSIGN CAME IN AS

GOVERNOR, YOU HAD DEMOCRATS AND

YOU HAD A GOVERNMENT SHUTDOWN.

>> I THINK THE DEMOCRATS WILL

PRESENT A BUDGET TO MURPHY.

IT'S NOT GOING TO BE WHAT MURPHY

PRESENTED TO THEM.

THE LEGISLATURE ITSELF, IT'S IN

THEIR BOX NOW.

THEY SEEM PRETTY FUNCTIONAL

THESE DAYS.

>> THE TOP TWO DEMOCRATS OF THE

SENATE BOTH SAY THEY DON'T SEE A

SHUTDOWN COMING.

MAYBE TAKE THEM AT THEIR WORD

FOR NOW UNTIL WE GET TO LIKE

JUNE 20th.

>> LET'S MOVE ON.

BUDGET HEARINGS BEGAN AT THE

STATE HOUSE THIS WEEK.

SHE SAID WITHOUT NEW TAXES AND

JUST HOLDING EVERYTHING ELSE

STEADY, THIS STATE WOULD BE $161

MILLION SHORT.

>> THIS IS NOT ONLY

UNSUSTAINABLE.

IT IS UNACCEPTABLE AND THE

GOVERNOR IS PROPOSING A SERIES

OF NEW REVENUE AND BUDGET

INITIATIVES TO GET OUR FISCAL

HOUSE IN ORDER.

>> MICHAEL HILL, LET'S TALK

ABOUT THE THRASH POINTS IN THIS

BUDGET.

WHAT ARE THEY?

>> I THINK THE RAISING TAXES IS

THE BIG ONE.

I THINK THERE'S A LOT OF

OPPOSITION TO.

A LOT OF DEMOCRATS AND

REPUBLICANS ARE VOICING

OPPOSITION.

THEY DON'T LIKE THIS.

YOU NEED TO COME UP WITH ANOTHER

WAY TO DO THIS.

IT MAY BE TOO EARLY, THEY THINK,

TO TALK ABOUT RAISING TAXES.

>> THEY SAY WE HAVEN'T EVEN SEEN

THE APRIL 15th TAX COLLECTIONS

YET.

THAT COULD CHANGE EVERYTHING.

>> THEY HAVEN'T SAID WHAT THEY

WOULD CUT INSTEAD.

DEMOCRATS RIGHT NOW ARE PLAYING

THE WE DON'T WANT TO RAISE TAXES

GAME.

BUT YOU'RE NOT HEARING ON THE

OTHER END, WHAT ARE WE GOING TO

DO INSTEAD?

BECAUSE THERE IS A FISCAL

PROBLEM IN THE STATE.

THE QUESTION IS, WELL, WHAT

HAPPENS NOW?

WE HAVEN'T HEARD DEMOCRATS'

PLAN.

>> THE BULK OF THAT NEW SPENDING

IS SCHOOL FUNDING AND PENSIONS

AND NEW JERSEY TRANSIT.

ARE THEY GOING TO CUT INTO

THOSE?

I DON'T THINK SO.

I THINK THEY WILL RAISE TAXES.

>> YOU THINK THEY'LL RAISE THE

MILLIONAIRE'S TAX?

>> YES.

I HEAR THE WHINING BUT I DON'T

SEE AN ALTERNATIVE.

>> YOU THINK THEY'LL PUT THE

SALES TAX BACK TO 7%?

>> I DON'T KNOW WHICH EXACTLY

BUT I THINK THEY'RE GOING TO GET

TO MURPHY'S NUMBER OR CLOSE TO

IT, BECAUSE THEY NEED TO GET TO

THAT NUMBER TOO.

THEY HAVE TO PRESENT A BUDGET TO

MURPHY.

IF THEY DON'T GO WITH THE

MILLIONAIRE'S TAX THEY HAVE TO

CUT THESE THREE BIG INCREASES,

PENSIONS, SCHOOL FUNDING AND NEW

JERSEY TRANSIT.

THOSE ARE THINGS I DON'T THINK

ANYBODY IS EAGER TO CUT RIGHT

NOW.

>> SPENDING IS ANOTHER SLASH

POINT.

EVERYBODY IS STILL TALKING ABOUT

MURPHY'S DOWN PAYMENT TOWARD

UNIVERSAL PRE-K AND DOWN PAYMENT

TOWARDS FREE COMMUNITY COLLEGE.

ARE THOSE THINGS GOING TO

SURVIVE?

>> THAT'S A GOOD QUESTION.

I THOUGHT THE REPUBLICAN

ASSEMBLYWOMAN QUESTIONED LIKE

WHY ARE WE STARTING THESE NEW

PROGRAMS WHEN WE AREN'T

ADEQUATELY FUNDING PUBLIC

EDUCATION AND TRANSIT?

I THINK MURPHY WANTS TO PUT A

MARKER DOWN AND FILL THESE

BUCKETS.

HE'S PUTTING A LITTLE DROP IN

EACH ONE NOW.

WHEN YOU LOOK AT THE OTHER END

AND THE THINGS WE'RE NOT FUNDING

PROPERLY, THAT'S GOING TO CREATE

SOME SERIOUS PROBLEM FOR HIM.

>> ANY OTHER THOUGHTS ON THOSE

MURPHY INITIATIVES, THOSE

STRONGER, FAIRER INITIATIVES?

>> THE PROPOSED BUDGET THAT THE

GOVERNOR PRESENTED, IT'S JUST

THE STARTING POINT FOR THE

NEGOTIATIONS.

AND THE LEGISLATURE HAS ALL OF

THESE TINY LITTLE PET PROJECTS

THAT THEY NEED TO GET IN THERE.

I THINK ULTIMATELY THE BUDGET IS

CERTAINLY GOING TO LOOK

DIFFERENT THAN WHAT MURPHY

PRESENTED.

>> ONLY AT THE MARGINS, 99 OR

98% OF IT WILL BE WHAT HE

PRESENTED.

MAYBE NOT.

>> I DON'T THINK SO.

I DON'T THINK THE SCHOOL FUNDING

THING IS GOING TO CHANGE.

>> YOU THINK THEY'RE GOING TO

PUT MORE MONEY INTO SCHOOL

FUNDING?

>> NO.

THEY'RE GOING TO FIX IT THE WAY

SWEENEY WANTS TO FIX IT, WHICH

IS GETTING BACK TO THE FORMULA.

>> AND THE TREASURER SAID, WE

AGREE THAT WE SHOULD CHANGE THE

FORMULA.

YOU ALL CHANGED IT LAST YEAR,

BUT YOU DID IT THROUGH BUDGET

LANGUAGE.

YOU DIDN'T PASS THE STATUTE.

WE WANT TO SIT DOWN WITH YOU AND

COME UP WITH A STATUTORY CHANGE,

BECAUSE WE'RE BOUND BY STATUTE

TO USE THE FORMULA FROM 2008 AND

NOT GO ALONG WITH HOW YOU

TINKERED WITH IT IN THE BUDGET

LANGUAGE LAST JUNE.

A SUBTLE DISTINCTION, BUT ONE

THAT MAY COME INTO PLAY IN THIS

CONVERSATION IN THE NEXT FEW

MONTHS.

THERE ARE A COUPLE OTHER ITEMS

THAT ARE FLASH POINTS, I WOULD

SAY.

ONE IS PROPERTY TAX REBATES, THE

OLD HOMESTEAD REBATE PROGRAM.

THE LEGISLATURE CUT IT IN HALF

AT THE END OF THE FISCAL YEAR

LAST JUNE.

MURPHY AT SOME POINT IN THE

CAMPAIGN TALKED ABOUT RESTORING

ROBUST REBATES, BUT HE'S GOING

ALONG WITH THE 50% CUT THAT THE

LEGISLATURE DID LAST YEAR AND

GETTING SOME CRITICISM FOR IT.

ANYBODY HEAR ANYTHING ON THAT?

ANYBODY KNOW ANYTHING ON THAT?

>> IT WAS MENTIONED AT THE

BUDGET HEARING THE OTHER DAY

BEFORE THE ASSEMBLY.

MURPHY'S TEAM PRETTY MUCH HELD

STEADY AND SAID WE'RE KEEPING IT

AT THE 50% CUT THAT WAS LAST

YEAR.

THAT SEEMS TO BE WHAT'S GOING TO

HAPPEN.

>> I HAVE ANOTHER ISSUE THAT I

THOUGHT OF.

WHAT IS HAPPENING ON MARIJUANA?

MURPHY PUT IN $80 MILLION IN HIS

BUDGET -- 60 MILLION COMING FROM

TAXES ON LEGALIZED RECREATIONAL

MARIJUANA.

THE SENATE HASN'T EVEN HELD A

HEARING ON MEDICAL MARIJUANA.

MURPHY PUT OUT THIS REPORT VYING

TO EXPAND THE MEDICAL MARIJUANA

PROGRAM.

THE ASSEMBLY HAS ADVANCED SOME

BILLS OUT OF COMMITTEE.

IF ANYTHING'S GOING TO HAPPEN ON

THAT, IT HAS TO START HAPPENING

SOON.

>> WELL, MURPHY'S BUDGET ASSUMES

THAT MARIJUANA WILL BE LEGALIZED

BY JANUARY 1st OF NEXT YEAR,

2019, AND THAT THEY'LL SOMEHOW

GET $60 MILLION IN REVENUE FROM

THE SECOND SIX MONTHS OF THE

FISCAL YEAR.

BUT YOU'RE RIGHT, DOESN'T LOOK

LIKE THAT'S GOING TO BE THE

CASE.

>> THEY'RE FAR AWAY OFF RIGHT

NOW.

A LOT OF DEMOCRATS ARE EITHER NO

OR UNDECIDED.

THEY HAVE A LOT OF WORK TO DO IF

THEY'RE GOING TO PASS IT BY

JANUARY 1.

>> THINK ABOUT HOW LONG IT TAKES

TO GET REGULATIONS PROMULGATED.

THERE HAS TO BE THE PUBLIC

COMMENTARY AND THEN IT HAS TO BE

ON THE BOOKS.

TO GET STUFF UP AND RUNNING,

THAT'S NOT HAPPENING IN SIX

MONTHS.

>> NO STATE HAS BEEN ANYWHERE

NEAR THAT FAST.

MASSACHUSETTS IS JUST ABOUT TO

START IN JULY, BUT THEY PASSED

THE BILL OVER A YEAR AGO.

IT TAKES TIME TO RAMP THESE

THINGS UP.

>> IF THEY DON'T GET THAT $60

MILLION, THEY'LL HAVE TO FIND

$60 MILLION IN CUTS OR MAYBE

THEY'LL PASS THE BUDGET WITH

THAT ASSUMPTION BUILT INTO IT

AND DEAL WITH IT LATER.

>> I THINK MURPHY'S TACTIC HERE

IS THEY'RE HAVE TO AGREE TO

LEGALIZE RECREATIONAL MARIJUANA

OR THEY HAVE TO COME WITH THEIR

OWN 60 MILLION.

>> THE GROSS RECEIPTS ENERGY

TAX, I DON'T UNDERSTAND WHAT

THEY'RE DOING.

I DON'T KNOW IF YOU ANY OF YOU

DO EITHER.

BUT I JUST WANT TO POINT OUT

THAT THIS BUDGET -- THE STATE

COLLECTS $800 MILLION FROM

UTILITIES THAT IT TURNS OVER TO

MUNICIPALITIES.

AND THIS BUDGET FOR THE FIRST

TIME PUTS THAT MONEY INTO THE

GENERAL FUND INSTEAD OF HAVING

IT AS AN OFF-BUDGET ITEM.

MAYORS APPARENTLY ARE VERY UPSET

ABOUT THIS.

THE FACT THAT IT'S COMING OUT OF

THE GENERAL FUND INSTEAD OF A

SEPARATE OFF-BUDGET COLLECTION

BY THE STATE, WHICH ITSELF IS A

FAIRLY NEW GIMMICK, SEEMS TO

HAVE SOME LAWMAKERS CONCERNED.

ANYBODY HEAR ANYTHING ABOUT

THAT?

>> I THOUGHT THE STATE WAS

PILFERING THAT STREAM OF REVENUE

FOR YEARS.

SO THIS IS NEWS TO ME THEY'VE

BEEN ACTUALLY TURNING IT OVER.

THE CITIES HAVE BEEN COMPLAINING

ABOUT THIS ISSUE FOR YEARS.

>> I DON'T KNOW ABOUT THIS

PARTICULAR ISSUE, BUT I WOULD BE

SCARED FOR ANY DEDICATED REVENUE

STREAM TO BE PUT IN THE GENERAL

FUND.

BECAUSE WHEN THINGS GO IN THE

GENERAL FUND, THEY CAN BE USED

FOR ANYTHING.

>> THAT'S RIGHT.

LET'S MOVE ON.

A LOT OF BILLS WERE VOTED ON AT

THE STATE HOUSE THURSDAY.

LET'S TALK ABOUT A FEW.

LET'S START WITH THE OUT OF

NETWORK BILL, TEN YEARS IN THE

MAKING, SIX YEARS IN THE

MAKING -- I READ DIFFERENT

NUMBERS THIS MORNING.

HOW SIGNIFICANT IS IT?

>> THIS WAS A HUGE LEGISLATIVE

VICTORY FOR ASSEMBLY SPEAKER

CRAIG COUGHLIN.

FOR HIM IT'S BEEN A MAJOR POLICY

PRIORITY OVER THE PAST COUPLE OF

YEARS AND IT HAS ALWAYS STALLED

OUT.

IT HAS NOT GOTTEN TO A FLOOR

VOTE.

THIS BILL HELPS PROTECT

CONSUMERS FROM THE SURPRISE

BALANCE BILLS THAT YOU WOULD GET

WHEN YOU GO INTO THE HOSPITAL IN

AN EMERGENCY SITUATION OR SAY

YOU GET AN ANESTHESIOLOGIST THAT

YOU DIDN'T KNOW WAS GOING TO BE

PART OF YOUR OPERATION -- IF

THEY DISAGREE, THEY HAVE TO GO

INTO THIS ARBITRATION SYSTEM AND

THEY NEED TO WORK IT OUT.

THE STICKING POINT HAS ALWAYS

BEEN WHAT THE ARBITRATION

PROCESS LOOKS LIKE.

HOSPITALS AND DOCTORS SAY THIS

IS GOING TO LOWER OUR ABILITY TO

NEGOTIATE.

WE'RE NOT GOING TO HAVE AS MUCH

LEVERAGE WHEN WE WANT TO DO

THOSE IN NETWORK RATES.

THAT'S WHAT'S BEEN SO

SURPRISING, BECAUSE THE POLL OF

HOSPITALS AND DOCTORS HAS BEEN

SUCH THAT THIS HASN'T EVEN

GOTTEN TO THE FLOOR.

THE NEW JERSEY HOSPITAL

ASSOCIATION CAME ON BOARD.

THIS IS HAPPENING SO QUICKLY.

SO NOW IT'S PASSED BOTH THE

ASSEMBLY AND THE SENATE.

WHAT'S PHIL MURPHY GOING TO DO?

THROUGHOUT THE CAMPAIGN HE

TALKED A BIG GAME.

I REPEATEDLY ASKED HIM FOR

SPECIFICS.

HE'S NEVER SAID.

THERE'S SOME LEGAL QUESTIONS AS

TO WHAT THIS LEGISLATION CAN

ACTUALLY APPLY TO.

THE STATE ONLY REGULATES AROUND

30% OF THE HEALTH INSURANCE

MARKET, AND THE OVER 70% ARE

FEDERALLY REGULATED.

SO THERE'S THIS BIG OUTSTANDING

LEGAL QUESTION, CAN YOU APPLY

THIS LEGISLATION TO THIS FEDERAL

HEALTH PLAN.

>> IT'S VERY COMPLEX.

>> IT REALLY SHOULD SHOCK PEOPLE

HOW SLEAZY THIS BEHAVIOR IS.

YOU BREAK YOUR WRIST AND THEY

BRING IN AN ANESTHESIOLOGIST OUT

OF NETWORK AND YOU GET CHARGED

$20,000.

>> LET ME ASK YOU ABOUT THE

NUCLEAR SUBSIDY BILL, WHICH

YOU'VE BEEN WRITING EDITORIALS

AGAINST.

IT PASSED BOTH HOUSES YESTERDAY?

>> THEY DIDN'T LISTEN TO MY

ADVICE AGAIN.

IMAGINE.

PEOPLE SHOULD BE OUTRAGED AT

THIS.

IT'S $300 MILLION.

IT'S GOING TO GO INTO THE

ELECTRICITY BILL.

EK TRIS -- ELECTRICITY BILL IS

THE MOST REGRESSIVE WAY.

IT'S $300 MILLION A YEAR.

THE BILL ITSELF IS SO FLAWED.

MOST OF OF THE LEGISLATORS DON'T

UNDERSTAND THE ENERGY MARKET.

THEY ADMIT THAT.

>> IS HE GOING TO SIGN BOTH OF

THESE MEASURES?

>> I THINK HE WILL.

THE MOST TELLING LITTLE DETAIL I

CAN GIVE YOU THAT'S NOT

COMPLICATING IS THEY'RE

EXCLUDING THE RATE PAYER

ADVOCATE.

>> THAT'S A STATE POSITION.

>> RIGHT.

WHEN IT COMES TO THIS NUCLEAR

SUBSIDY, SHE'S OUT.

UNPRECEDENTED, UNLESS THE

ATTORNEY GENERAL AND THE BPU SAY

SHE IS VITAL, WHICH IS A HUGE

LEGAL BARRIER.

THAT SAYS IT ALL.

THE RATE PAYERS ARE GETTING

SCREWED HER.

>> ANY OTHER THOUGHTS ON THAT

BILL, OUT OF NETWORK OR ANY

OTHER BILL?

YOU COVERED A VOTER REGISTRATION

BILL.

>> REPUBLICANS ARE VERY UPSET

ABOUT IT.

>> WHY?

>> BECAUSE THEY THINK THAT IT

OPENS THE DOOR TO MORE FRAUD.

THEY THINK THAT THESE 18 STATE

AGENCIES OR SO DON'T

COMMUNICATE.

THIS IS GOING TO CONFUSE PEOPLE.

>> THE BILL WOULD HAVE YOU BE

AUTOMATICALLY REGISTERED TO VOTE

WHEN YOU APPLY FOR A DRIVER'S

LICENSE OR AT ANY OF THESE OTHER

18 AGENCIES THAT YOU HAVE SOME

KIND OF DEALING WITH.

>> RIGHT.

DEMOCRATS THINK THIS IS

WONDERFUL BECAUSE IT OPENS THE

DOOR TO A LOT OF PEOPLE.

SENATOR VITALE SAID GET OUT

THERE AND ROLL THE DICE AND SEE.

>> GOVERNOR GOING TO SIGN IT?

>> HE SAID THE GOVERNOR IS GOING

TO SIGN IT.

YES.

>> ALL RIGHT.

IT'S TIME FOR YOUR JOURNALISTIC

HIGH POINTS OF THE WEEK.

BRENT?

>> SWEENEY VERSUS MURPHY.

WATCHING THIS ALL UNFOLD AND

RUNNING AROUND AT 6:00 AT NIGHT

TO GET COMMENTS IS WHAT MAKE

THIS IS JOB FUN.

>> MOVING ON THE OUT OF NETWORK

BILL AFTER SUCH A LONG PERIOD OF

TIME.

>> MICHAEL?

>> THIS IS AUTISM AWARENESS

MONTH.

LEARNING FROM PUBLIC SCHOOLS AND

THE PHOENIX CENTER IN NUTLEY,

HOW TO EDUCATE KIDS THAT ARE

AUTISTIC.

IT WAS INCREDIBLE WHAT I FOUND.

>> THE SIGNS OF THE ANTI-TRUMP

WAVE IN NEW JERSEY BEING POTENT,

TO PUT IT MILDLY.

WE HAVE THE BOB MENENDEZ AFTER A

LONG CORRUPTION TRIAL WHICH HE

WAS ACQUITTED BUT HE CAME ACROSS

AS LOOKING FAIRLY SHADY IS UP 21

POINTS OVER THE REPUBLICAN, ALL

BECAUSE OF TRUMP.

>> 53% TO 32%.

>> THE POLITICAL REPORT CHANGED

THE STATUS OF THE MacARTHUR RACE

WHICH IS CONSIDERED A SAFE SEAT.

YOU NOW HAVE FIVE REPUBLICANS

SEATS THAT DEMOCRATS ARE FAVORED

TO WIN TWO AND WOULD WIN UP TO

FOUR.

>> MY HIGH POINT WAS ATTENDING

BACK TO BACK BUDGET HEARINGS.

THEY ARE DRY AS CRAZY, BUT

SOMEHOW AFTER ALL THESE YEARS I

CAN COLLAPSE A FOUR-HOUR HEARING

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