WHITMAN TO SCHUNDLER: CLEAN UP YOUR ACT


TRENTON - Former Governor Christine Todd Whitman has had plenty to say about 
Republican gubernatorial candidate Bret Schundler.  She just hasn't had much 
to say lately.

But in the past, she and her top advisors have been scathing critics of Mr. 
Schundler.  So as she prepares to stand by his side tonight, we thought it 
was time for a trip down memory lane.

Whitman vs. Schundler, the greatest hits

Schundler's Payroll Tax

The bloom was off the rose by December 21, 1995, when Governor Whitman told 
Schundler she planned to block his attempts to enact a payroll tax in Jersey 
City because it was a really bad idea:

* "(Jersey City's) growth and progress will be jeopardized by the enactment 
of a payroll tax.  Such a tax represents a substantial portion of the net 
income to a number of Jersey City's corporations.  The tax could very well 
result in the departure of these companies from the city.

In addition to stifling the growth of such businesses, such a tax would also 
hinder the State's and Jersey City's ability to compete for various other 
enterprises that are presently considering relocations to the city. 
Accordingly, the payroll tax could result in a contraction of Jersey City's 
tax base, rather than its expansion." [letter from Whitman Chief of Staff 
Peter Verniero to Schundler, 12/21/95, attached]

Of course, Schundler went ahead and enacted his payroll tax anyway.  A court 
ruled his tax was illegal and ordered him to refund Jersey City businesses 
the $2.85 million he had improperly collected.  Schundler waged a court 
battle for two years to defend his illegal tax for two years, until the 
state Supreme Court finally turned him down.

Whitman slams Schundler's management of the city

It was all downhill from there.  By late 1999, Governor Whitman took the 
gloves off and took her anti-Schundler message directly to the people of 
Jersey City.  In a letter to Jersey City residents, she explained that she 
would recommend a 60 percent increase in Distressed Cities aid to Jersey 
City, but that the city had some serious management problems:

* "In its four-month review, the state Distressed Cities team has uncovered 
numerous instances of wasteful and inefficient spending in Jersey City's 
budget - expenses that cannot be justified with state aid.  I can assure you 
there is no need for the type of draconian actions being threatened by Mayor 
Schundler.  If the mayor acts responsibly, the city will be largely 
unaffected by the proposed reductions. [letter from Gov. Whitman to Jersey 
City residents, 11/24/99, attached]

Whitman administration accuses Schundler of wrong doing

When Whitman put her key advisor, DCA Commissioner Jane Kenny, on the 
Schundler attack, it got even worse:

* "In addition to possible irregularities in accounting practices and 
instances of non-compliance with statutory and regulatory law, it is 
problematic that the elected officials would spend over a million dollars on 
personal charitable projects, given the City's significant financial 
problems and need for additional State aid annually to close its budget gap. 
 Our staff has been aware of the City's practices for a short while and, 
during that time, has been researching and compiling data to substantiate 
our concerns on the legality and propriety of utilizing public funds in this 
manner." [Letter from DCA Commissioner Kenny to Jersey City resident, 
5/12/00, attached]

* "We are keenly aware of the City manipulation of revenues and expenditures 
and what may be misrepresentations in its annual financial statements. 
These issues will be factors in our consideration of special aid to the City 
for its SFY2000 budget." [Letter from DCA Commissioner Kenny to Jersey City 
resident, 10/12/99, attached]

*  "In the first phase of our review, which was limited to an analysis of 
salary and operational costs, our staff immediately found glaring examples 
of frivolous spending: an example of which is taxpayer dollars buying 
specialty coffees for the Mayor's offices....

There are several reasons why the City has been able to hold increases in 
local real estate taxes to an amount less than the increase in inflation. 
The major factor is the use of one-shot revenues and new laws, adopted to 
assist the City, which permitted bulk lien sales and accelerated tax sales. 
In addition, State aid to the City has increased from $66.9 million in FY 
1995 to $77.3 million in FY 2000.  That does not include an additional $30 
million in special aid or millions of additional dollars in housing, social 
services, transportation and public safety grants.

You state that spending in the City also increased at a rate less than the 
increase in inflation during the current City administration. 
Unfortunately, this is an irrelevant issue because this was possible 
primarily as the result of shifting costs from the City's budget to other 
governmental agencies.  For example, the City shifted $8 million in solid 
waste costs from the operating budget to the Municipal Utilities Authority." 
[Letter from DCA Commissioner Kenny to Hudson County Board of Realtors, 
11/22/00, attached]

Whitman says Schundler is out of step with mainstream New Jersey

Even after she left the Statehouse, and left New Jersey, Whitman kept up her 
assault:

* "'I don't know that his positions are compatible with, on some issues, 
most of New Jerseyans,' who Whitman said 'tend to believe in a woman's right 
to choose, at least in the case of rape and incest, which he does not.'" 
[Washington Post, 7/27/01]


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