Guest Opinion: Let\’s Not Panic

Well, I\’d have to say that 2020 is off to a hell of a start.  From giant fires ravaging the country of Australia, the death of NBA icon Kobe Bryant, the Coronavirus, stock market volatility and of all things, Prince Harry wants out of the royal family!

Here\’s what I know; I\’m grateful for today and I\’ll take it as it comes.  I\’m not

going to play into the fear-mongering on social media when it comes to stock market declines or Coronavirus.  My solution is pretty simple; diversify, buy real estate for cash flow, wash my hands frequently and keep trucking along.

On Facebook this week I saw a lot of stoking the fire of fear when it comes to stocks vs. real estate. I don\’t agree with that tactic as I continue to own both stocks along with my real estate.  Maybe it\’s the former financial advisor in me, but I don\’t get too emotional when it comes to investments.  I make decisions based upon data and return on investment and believe me when I say, that this wasn\’t learned overnight.  I got absolutely destroyed in the recession and learned some painful lessons about emotions and following the crowd.

This week I posted on Facebook about a partial note with a 12% yield that we were looking to sell and I had multiple IRA holders in my network reach out to purchase it.  If you don\’t know what a partial note is, you can learn more about that

HERE

on our YouTube Channel, but in a nutshell it means that I\’m selling a portion of the payments on a note that I own for a period of time.  These are ideal for IRA holders that may want to hold some cash flowing assets in their portfolio along with their stocks and bonds.  Did you know that you can also hold these assets in an account for your kids, HSA, Roth or even 401k?

I don\’t think you should have all of your eggs in one basket which is why I own different businesses, stocks, bonds, notes and of course real estate.  If you are interested in adding some notes to your portfolio as an income producer, reach out and let\’s schedule a call to learn more about your investment goals to see if they\’re a fit.

It\’s a crazy world we live in and that will continue on.  I\’m grateful to have you in my network and I hope you stay healthy and happy!

PS:  Don\’t forget to wash your hands!  😉

Regards,

Ben Fredricks

Odell Barnes REO

www.OdellBarnesREO.com

NEW JERSEY SPORTSBOOKS NEARLY HIT $500 MILLION IN FEBRUARY

Sportsbooks make year-over-year jump, online casinos could help lessen potential impact of coronavirus on Atlantic City casinos, according to PlayNJ

(ATLANTIC CITY, N.J.) — Super Bowl betting pushed New Jersey’s online and retail sportsbooks to a strong February, though the monthly handle fell short of $500 million for the first time since October. But the concern for New Jersey’s sportsbooks is what lies ahead, according to PlayNJ analysts, after the NBA suspended its season, the NCAA Tournament limited spectators, and other leagues mull suspensions.

“New Jersey’s year-over-year gains remained impressive in February, but we are in uncharted territory now,” said Dustin Gouker, lead analyst for

PlayNJ.com

. “Obviously there are bigger concerns with coronavirus, but the NBA is a major revenue driver for New Jersey’s sportsbooks. So the suspension of the season, in addition to suspensions of other sports, will undoubtedly have a significant effect.”

New Jersey’s online and retail sportsbooks made a giant year-over-year leap in handle to $494.8 million, up 54.4% from $320.4 million in February 2019, according to official reporting released Thursday.

New Jersey generated $54.2 million in Super Bowl bets, but that was No. 2 to Nevada’s $156.8 million. Still, the Garden State could surpass Nevada, which posted a $458.6 million in handle in February 2019.

Despite losing $4.3 million on the big game, New Jersey sportsbooks managed to produce $17 million in gross revenue, resulting in $2.2 million in tax revenue for the state. Revenue was up 33.9% from $12.7 million in February 2019. Basketball, which produced a $6.6 million win on $219.3 million in wagers, helped sportsbooks overcome the Super Bowl loss.

“New Jersey bettors continue to show heavy interest in basketball,” Gouker said. “March Madness appears as of now as if it will be played, and it is one of the largest betting holidays in the U.S. But it is impossible to gauge just how much interest there will be if it is played at all.”

Online betting generated $436.5 million in wagers, 88.2% of the state’s handle in February. FanDuel Sportsbook/PointsBet led the way with $9.6 million in gross revenue from online betting, down from $22.2 million in January. Resorts Digital, anchored by DraftKings and Fox Bet, generated $4 million, down from $15.9 million. The online market leaders were followed by:

Monmouth/William Hill/Sugarhouse/TheScore ($1.3 million in revenue, down from $2.8 million in January)

BetMGM/Borgata ($1 million, down from $2.5 million)

Ocean Casino/William Hill ($168,015, down from $2 million)

Caesars Sportsbook/888sport ($34,183, down from $491,164)

Golden Nugget/BetAmerica (-$308,997, down from $431,643)

Hard Rock/Bet365/Unibet ($96,397, down from $340,933)

Tropicana/William Hill ($30,558, down from $74,379)

FanDuel Sportsbook at The Meadowlands again capitalized on the New York market and from localized betting on the XFL. The retail market leader posted $1.4 million in gross revenue, down from $4.3 million in January. FanDuel was followed in gross revenue by:

Tropicana Casino ($91,899, down from $100,288)

Resorts AC ($47,143, down from $163,436)

Bally’s AC ($32,199, down from $164,575)

Hard Rock AC ($19,294, up from -$4,467)

Monmouth Park (-$51,888, down from $883,716)

Ocean Casino (-$65,868, down from $377,369)

Golden Nugget (-$135,314, down from $116,266)

Borgata (-$318,896, down from $723,927)

Harrah’s AC ($41,649, down from $107,424)

ONLINE CASINOS

New Jersey’s online and poker industry set a revenue-per-day record in February, generating $52 million in revenue during the short month. February’s total was up 64% from $31.7 million in February 2019 and just shy of the record $55.1 million set last month.

Online casinos and poker generated $1.79 million per day during the 29 days in February, up from $1.78 million per day in January. March, which has historically been a big month for online casinos, could bring even more revenue in, as Atlantic City casinos brace for any impact from the coronavirus outbreak.

“Online casinos and sportsbooks should help buoy their land-based casino counterparts in Atlantic City should the coronavirus impact casino operations,” said Eric Ramsey, an analyst for

PlayNJ.com

. “The Golden Nugget’s online casino already generates more revenue than its retail casino, and others have been closing the gap. That online revenue stream could prove vitally important in the coming months.”

Some other important online casino and poker data from the February report:

Online casinos injected $7.8 million into state coffers.

The Golden Nugget tallied $19.8 million in online revenue, easily leading the market. Resorts Digital was second, generating $12.5 million.

Online casino games produced $50.2 million in revenue, up from $29.9 million in February 2019. Online poker notched $1.8 million, even with February 2019.

For more information and analysis on regulated sports betting and online gaming in New Jersey, visit

PlayNJ.com

/

news

.

About the

PlayUSA.com

Network:

The

PlayUSA.com

Network is a leading source for news, analysis, and research related to the market for regulated online gaming in the United States. With a presence in over a dozen states,

PlayUSA.com

and its state-focused branches produce daily original reporting, publish in-depth research, and offer player advocacy tools related to the advancement of safe, licensed, and legal online gaming options for consumers. Based in Las Vegas, the PlayUSA Network is independently owned and operated, with no affiliations to any casino — commercial, tribal, online, or otherwise.

# # #

Guest Opinion: We Need a Budget That Reflects the Environment/Climate Change

Jeff Tittel

New Jersey Sierra Club

The Senate Budget and Appropriations Committee held a public hearing today on Governor Murphy’s proposed budget FY2021. The DEP budget has been cut by 34%, from $557 million to $342 million. The state service funding dropped 1.3%, from $253 million to $250 million. The Clean Energy Fund was raided by $113 million, with an

additional $30 million to be taken out of the fund for EV’s, NJ Transit, and the Whole House Project. Jeff Tittel, Director of the New Jersey Sierra Club, released the following statement:

“The environment has been shortchanged for far too long, and this budget is still shortchanging the environment. This year sees more cuts to the DEP. This budget is still raiding DEP funds and programs as well as the Clean Energy Fund. Funds for critical environmental programs like the Hazardous Discharge Fund were raided again like last year. We cannot continue to do these raids on the back of the environment. It is critical to fund and move New Jersey forward when it comes to important issues like climate change and clean energy, cleaning up toxic sites, and making sure our air is clean and our water is pure.

“Year after year, DEP is cut to the bone. Now Governor Murphy is cutting through the bone into the marrow, slashing the FY2021 budget by 34%. 15 years ago, the overall DEP budget was $516 million. Yet now, even with inflation and rising salaries, we are down to $342 million. The operations budget has dropped by 1.3%, from $253 million to $250 million. DEP needs more funding so that we have enough people to do the many jobs of the agency, including re-writing the rules that Christie rolled back. Enforcement is down, parks are in disrepair. We don’t have enough people to deal with the lead crisis, clean up toxic sites, and make sure our air is clean to breath and our water is clean to drink. As the state budget grows, the DEP budget declines.

“Staffing levels are going down without any new hiring at DEP, which will only expand privatization and outsourcing of DEP programs. The Environmental Integrity Project found that NJ is 10th in the nation for environmental funding cuts, with a 20% cut in DEP staff from 2008 to 2018. Governor Murphy promised to have 100 more DEP staffers than under Christie, but we are more than 150 below Christie – or 250 below what the Governor promised. DEP went from 4,400 staff members in the mid-1990’s to 2,321 in 2008, and now we are down to 1,858. DEP needs enough resources to make sure our land is clean, our air is pure, and we are able to keep parks open for the people of NJ.

“The budget continues to target our environment, as well as urban areas that suffer the most from pollution. They are grabbing $200 million in fees, fines and other funds. This money should be going toward brownfield cleanups. The Hazardous Discharge Fund is being raided by $19 million, and $17.5 million from the Spill Act Compensation Fund. That money should be going to urban areas for pollution cleanup, but instead it is being shipped out to the wealthy suburbs. Our urban areas are suffering the most because of money being diverted for other purposes. We’re taking money away from Newark and Linden and places that have been damaged and instead using it to plug a black hole in the budget. This budget has the wrong priorities, continuing to take money out of the environment and away from urban areas, and shifting it into wealthy suburbs. The diversion of these funds is a regressive tax that especially hurts working families and urban low-income communities.

“The budget raids $113 million from the Clean Energy Fund, which includes $80 million for NJ Transit and $30 million for EVs. NJ Transit needs a stable source of income because the system we have now is broken. Just like last year, this year NJ Transit is taking $460 million in capital funds for operations and maintenance. Diverting capital funds means that they don’t have the money for improvements and to expand lines like the Hudson-Bergen and South Jersey light rail lines. This is like robbing our future to pay for current expenses, or taking a second mortgage on a house to buy groceries. We need to fix this broken system and help NJ Transit move forward. Even though a law was passed to support EV infrastructure for the public, the state is not electrifying their fleet. We are lagging behind other states when it comes to EVs. New Jersey must find a sustainable source of funding for our transportation system so that we can have money for CEF and move forward with things like energy efficiency programs and EV infrastructure for our state.

“Money for open space is increasing, but the priorities are wrong for constitutionally dedicated CBT revenues for FY2021. Over the past decade funding is down 40% despite us adding 40% more open space. State parks are falling apart, but we have $500 million in backlogs. The funding formula reinforces funding inequities that continue to damage lower-income and minority communities. Money is being shifted from brownfield cleanups, watershed protections, and toxic site cleanups. The funding promotes stewardship projects, which are an excuse for logging public lands. We have seen in the past clear cutting forests and creating grass habitat under the guise of ‘stewardship.’ The priorities of this funding is wrong. There is no money going toward urban parks, Blue Acres, buying our flood-prone properties, or fixing our parks.

“We have major problems with our water in New Jersey, whether it is lead in our drinking water, algae in our lakes, stormwater management, or sewer overflows. A lack of testing and oversight has put New Jersey at risk, especially when it comes to lead in the drinking water. The $80 million is a start and a down payment, however we need a stable source of funding. Overall, the cost to fix New Jersey’s lead problem is $3.2 billion. The budget only includes $2 million for lake management programs. This is a miniscule drop in the budget for what is needed. Last year there were over 50 bodies of water in NJ that were closed or under advisory for high levels of cyanobacteria.Lake Hopatcong and Barnegat Bay will continue to be impacted by harmful algae and pollution without proper funding for critical programs like lake management. We also need to tie fixing our infrastructure to energy efficiency and renewable energy as well as green building, including blue and green roofs to reduce flooding.

\”Even though this year’s budget overall is better than last year’s, we still need to stop these raids and cuts for vital programs that affect our land, our air, our water, and cleanup of toxic sites. We need to fix our aging infrastructure, put more money into transit, and remove lead from our homes and schools. We need DEP’s budget to be restored. More funding for DEP and critical environmental programs means having enough staff to get the lead out of our children’s schools, moving New Jersey forward in energy efficiency, and reducing our impact on climate change. To get there, we need to make sure millionaires pay their fair share, get rid of corporate loopholes and subsidies, and make polluters pay for the damage that they have done to the environment. We need a budget with the right priorities, that is for the many and not for the special interest groups and the privileged few. We need a budget that reflects our values when it comes to the environment, climate change, and funding NJ Transit. The money is there – we need political will to put it in the right places.”

Texas Man Charged with Defrauding Cisco Systems, the Neat Company, iRobot Corporation, Amazon.com

Out of More Than $1.9 million in Merchandise

PHILADELPHIA PA (March 4, 2020)–– United States Attorney William M. McSwain announced that Reece A. Line, 23, of Pearland, Texas, was charged today by Information with 22 counts of mail fraud, eight counts of wire fraud, and three counts of tax evasion.

The Information alleges that the defendant perpetrated a scheme to defraud Cisco Systems Inc. (“Cisco”), the Neat Company (“Neat”), iRobot Corporation (“iRobot”), APC by Schneider Electric (“APC”), Amazon.com (“Amazon”), and other companies by engaging in a sophisticated warranty fraud scheme. The charges state that the defendant and his co-schemers obtained serial numbers to products sold or manufactured by Cisco, Neat, iRobot, and APC. They allegedly proceeded to register false domain names, obtain false email addresses, and submit false warranty claims, pretending to own products sold or manufactured by these companies that they claimed were not working. The Information alleges that the defendant provided customer service representatives with descriptions of the non-existent defects that he knew they could not solve by troubleshooting and would require replacement with new products. Cisco, Neat, iRobot, and APC then shipped the replacement products to the defendant and his co-schemers, which they promptly sold via eBay, on Amazon, or through computer resellers.

The Information further alleges that the defendant and his co-schemers defrauded Amazon by using false identities, domain names, email addresses, and mailing addresses to order products that they falsely claimed never arrived or arrived broken, thereby inducing Amazon to repeatedly send replacement products. The Information alleges that the defendant and his co-schemers then sold the products obtained in this manner via eBay.

All told, the defendant and his co-schemers successfully obtained at least $1,950,000 worth of products from the victim companies through their alleged fraud. The Information also alleges that the defendant evaded the payment of any income tax on the income he earned from his fraud for tax years 2014 through 2016 by, among other things, failing to file returns, storing his fraud proceeds in bank accounts and PayPal accounts in the names of co-schemers, storing cash at his residence, paying his personal living expenses with cash, and using false email addresses, false domain names, prepaid gift cards, and false identities to conceal his involvement in the fraud scheme.

“As alleged, the defendant engaged in a sophisticated fraud scheme that netted almost $2 million worth of products,” said U.S. Attorney McSwain. “Retail fraud, whether in brick-and-mortar stores or online, is a serious crime that must be punished and deterred. I would like to thank both the FBI and the IRS for their dedication and partnership in this matter.”

“Taxpayers are required to cooperate with the tax system by filing honest and accurate returns and paying their fair share,” said Michael Montanez, Acting Special Agent in Charge of IRS-Criminal Investigation. “The Special Agents of IRS-CI will continue to investigate and bring charges against those who intentionally violate our tax system.”

The defendant faces a maximum sentence of 825 years’ incarceration, a five-year period of supervised release, and a fine of $8,250,000.

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.

An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

Real Estate Ponzi Scheme

Rhode Island Woman’s Fraud Preyed on Friends and Neighbors

Monique Brady\’s house in East Greenwich, Rhode Island. Prosecutors said fraud proceeds paid for the home\’s $9,400 per month mortgage, with a total of $342,243 in mortgage payments made during the scheme.

A Rhode Island woman who preyed on the trust of friends, family, and neighbors in a dubious investment scheme—one that gilded her reputation and lifestyle while fleecing her victims of $4.8 million—was sentenced this month to eight years in prison. She was also ordered to pay back her victims.

Monique Brady pleaded guilty last July in federal court to running a fraud scheme prosecutors have described as “reprehensible,” “insidious,” and “depraved.” Brady, 45, of East Greenwich, claimed her property preservation company, MNB, had contracts to rehabilitate New England properties. She said she needed investments of $20,000 to $80,000 to pay subcontractors to perform the work. In return, investors were promised a 50-percent yield once the rehabilitation work was complete.

In the end, investigators determined it was all a $10 million charade. There were no large-scale property rehabs and only a few legitimate low-dollar contracts—almost all the money was used to prop up Brady’s Ponzi scheme and support a lavish lifestyle on the backs of friends who thought they knew her.

“She had lifelong friends who were just totally and completely betrayed by her,” said Pepper Daigler, a special agent in the FBI’s Boston Field Office who worked with Internal Revenue Service special agents on the case.

Brady’s victims—among them, multi-millionaires, firefighters, young, and elderly—represented a cross-section of the tony community 30 minutes south of Providence. Most had a very close connection to Brady. Investigators identified 23 individuals who lost their investments in the scheme, which encouraged investors to roll over purported gains to increase their stakes and potential windfalls. Some lost everything in the scam, which went on for at least four years before Brady was arrested on April 25, 2019, as she prepared to flee the country.

“She had life-long friends who were just totally and completely betrayed by her.”

Pepper Daigler, special agent, FBI Boston

“The burden of this loss is nearly impossible to put into words,” said one victim, identified as J.L., a week before Brady’s February 11 sentencing. “The stress my family has endured is beyond measure. Even my children’s futures are altered forever.”

The scam came to light after the IRS criminal investigators discovered inconsistencies between Brady’s spending and her business. That led to closer forensic analysis and then a deeper dive into financial records that showed repeated deposits of large checks, including some for $50,000 or $60,000. The high-dollar figures are not that unusual in real estate, where flipping houses and extensive remodels can reach into six figures. But the sham fell apart quickly when federal agents began interviewing Brady’s “investors.”

“That’s essentially where the wheels came off for her,” said Special Agent Mark Homsi of the IRS Criminal Investigation Division. “We were presenting them with records from these vendors where she did little or no actual work and they are providing us with these promissory notes for $50,000 or $60,000 investments. That was really the turning point—the interviews with these people.”

A 67-year-old victim with a quadriplegic husband and elderly parents with Alzheimer’s and dementia said in a statement to the court that she lost both her life savings and her parents’ savings to Brady’s ploy.

“I cannot articulate the guilt that haunts me for having made such an irresponsible decision that was grounded in emotion instead of common sense,” L.R. said in a victim impact statement. “Monique was fully aware of who I was as a caregiver, and she exploited that knowledge for her own selfish and criminal gain.”

In all, the self-styled preservation expert solicited investments for projects on 171 properties; no work was ever performed on 98 of those. Prosecutors said Brady’s conduct was as bad as they have ever seen in a Rhode Island fraud case. Brady even continued her scheming while incarcerated and awaiting sentencing, according to a February 6 sentencing memorandum. Her misconduct included making more than 200 unauthorized phone calls from prison using other inmates’ personal identification numbers.

Investigators said Brady’s case is a cautionary tale for anyone considering a get-rich-quick scheme. Her victims thought she was their friend and that she was doing them a favor—letting them in on something too good to pass up. But in this case, it was all too good to be true.

IRS Agent Homsi said Brady’s affluent friends were just as taken in as those who could least afford it: “Oftentimes, these are people who are very successful in the business world. And they would say, ‘If it wasn’t Monique, I would have done much more due diligence.’ But they just had that implicit trust in her.”

Meanwhile, the investments were paying for Brady’s extravagances, including a $9,400 monthly mortgage; trips to the tropics, Europe, multiple Super Bowls; a luxury shoe collection; and elective plastic surgery that she paid for in cash.

It wasn’t until the scheme fell apart that its breadth became apparent. Evidently, Brady encouraged secrecy among her investors—another common ploy of scam artists and Ponzi schemes. She eschewed talking business in social settings, said FBI Special Agent Daigler. Potential investors might have seen that as a sign of class, while others might see a potential red flag.

“I guess if somebody tells you to keep a secret, always be weary of why you have to keep it a secret,” Daigler said.

“Oftentimes, these are people who are very successful in the business world. But they just had that implicit trust in her.”

Mark Homsi, special agent, IRS Criminal Investigation

Resources

Rhode Island Businesswoman Sentenced in $10M Ponzi Scheme That Defrauded 23 Individuals

I-295 to be closed and detoured overnight next week; One lane to remain open during construction

Maintenance resurfacing work begins in Carneys Point

(Trenton)

– New Jersey Department of Transportation (NJDOT) officials today announced I-295 southbound and northbound will be closed and detoured on separate nights next week for the start of a maintenance and resurfacing project in Carneys Point, Salem County.

Tuesday, March 3:

Beginning at 8 p.m., Tuesday, March 3, through 6 a.m., Wednesday, March 4, NJDOT’s Contractor, Schifano Construction Corp., will

close and detour I-295 southbound

between Exit 4/Route 48 and Exit 2C/Route 130. The closure is necessary to place construction barrier to close one lane.

When the highway reopens on Wednesday morning the right lane will be closed and left lane will remain open. This configuration will be in place for approximately one month. The following signed detour will be in place overnight Tuesday, March 3:

I-295 southbound detour:

(8 p.m. Tuesday, March 3 to 6 a.m. Wednesday, March 4)

Motorists on I-295 southbound will be directed to take Exit 4/Route 48

Turn right onto Route 48 west/Harding Highway

Turn left onto Route 130 south/S. Virginia Avenue

Turn left onto Route 140 east/Hawks Bridge Road

Turn left to take ramp onto I-295 south

Wednesday, March 4, 2020:

Beginning at 8 p.m., Wednesday, March 4, through 6 a.m. Thursday, March 5, NJDOT’s Contractor, Schifano Construction Corp., will

close and detour I-295 northbound

between Exit 2B-C Route 130/Route 40 and Exit 4/Route 48. The closure is necessary to place construction barrier to close one lane.

When the highway reopens on Thursday morning the right lane will be closed and left lane will remain open for approximately one month. Access to the rest area will be maintained during construction. The following signed detour will be in place overnight Wednesday, March 4:

I-295 northbound detour:

(8 p.m. Wednesday, March 4 to 6 a.m. Thursday, March 5)

Motorists wishing to continue on I-295 northbound will be directed to take Exit 2B-C/Route 130/Route 40

Stay left for Exit 2C/Route 130

Turn left Route 140 west/Hawks Bridge Road

Turn right onto Route 130 north/Shell Road

Shell Road will become S. Virginia Avenue

Turn right onto Route 48 east/ E. Main Street

Turn left to take the ramp onto I-295 north

Motorists are advised to consider the NJ Turnpike as alternative to I-295 during construction.

The project will excavate, mill and pave a 1.25-mile stretch of I-295 between Exit 2C/Route 130 and the bridges over Hollywood Avenue/Dupont Country Club Road. In addition to resurfacing, the project also includes a complete replacement of the Weigh in Motion (WIM) sensors in the road. The WIM sensors allow NJDOT to collect roadway speeds, traffic volume, vehicle classification, and vehicle weight. The expected to be completed in April 2020.

Variable message signs are being utilized throughout the project limits to provide advance notification to motorists of all traffic pattern changes associated with the project.

The precise timing of the work is subject to change due to weather or other factors. Motorists are encouraged to check NJDOT\’s traffic information website

www.511nj.org

for real-time travel information and for NJDOT news follow us on Twitter

@NJDOT_info

or on the

NJDOT Facebook page

.

NJBIA 2020 Business Climate Analysis Shows NJ Remains Worst in Region

on Eve of FY2021 Budget Proposal

On the eve of Gov. Phil Murphy\’s budget address that is expected to call for more unnecessary tax increases, NJBIA released its updated 2020 Business Climate Analysis showing New Jersey has the least competitive business climate, with the highest

corporate tax, state sales tax, income tax and property taxes in the region.

NJBIA analyzed six individual business cost drivers in seven states and determined New Jersey ranks at the bottom overall behind Massachusetts, Connecticut, New York, Pennsylvania, Maryland and Delaware.

The graphic can be found

here

.

\”Once again, New Jersey is dead last on overall regional competitiveness and affordability,\” said NJBIA President & CEO Michele N. Siekerka, Esq. \”The only way for New Jersey to turn this situation around is with comprehensive reforms that are long-term and sustainable, not more tax increases and short-term fixes that only get the state through the next one-year budget cycle or two-year election cycle.

\”It\’s our hope that Tuesday\’s budget address starts addressing some of these issues.\”

NJBIA\’s annual Regional Business Climate Analysis, prepared by Director of Economic Policy Research Nicole Sandelier, observes six factors that affect business competitiveness — minimum wage, top income tax rate, top corporate tax rate, state sales tax rate, top unemployment tax rate and property taxes as a percentage of income — to see how New Jersey stacks up against six states in the region.

Each state\’s rates are compared and scored from 1 (least competitive) to 7 (most competitive).

New Jersey\’s overall business climate score (16) was the weakest for the third straight year. Once again, Delaware (31), Maryland (30), and Pennsylvania (28) were ranked first, second and third. New York\’s overall score (23) improved 1 point from 2019 to secure fourth place, while Connecticut (22) dropped 1 point this year to finish fifth behind New York. Massachusetts (20) ranked sixth both years.

Compared to the six other states, New Jersey had the highest top income tax rate (10.75%), top corporate tax (10.5%), state sales tax (6.625%) and property taxes paid as a percentage of income (5.05%).  This is on top of New Jersey\’s onerous regulatory climate and challenges in supporting an innovation ecosystem seen in some other regional states.

Last week, Senate President Steve Sweeney announced a proposal to not sunset a corporate business tax hike that was to end in 2022. The current top corporate tax rate is the second highest in the nation.

\”Misguided proposals that expand New Jersey\’s income tax, raise the state sales tax, maintain our our corporate business tax as a national outlier, and ignore the issues that drive high property tax rates would only worsen our business climate,\” Siekerka said. \”New Jersey needs a more competitive economy, not just for the businesses operating here and their executives, but for the middle-income employees who depend on these businesses for their livelihood.\”

Siekerka noted some special interest groups are already lobbying for a budget that increases and reinstates several different taxes in order to fund $3.1 billion in additional state spending in the FY 2021 year that begins on July 1 — even though state tax revenues are currently running well ahead of projections and 6% above the same seven-month period in the previous fiscal year.

\”New Jersey\’s challenges won\’t be solved with more taxes and more spending,\” Siekerka said. \”What\’s needed are structural budget reforms that address New Jersey\’s long-term debt and the state\’s unsustainable spending on platinum-level public employee healthcare plans and pensions. Pension and benefit reform will allow New Jersey to spend more on important public policy priorities such as education and transportation.\”

According to NJBIA\’s analysis of audited state revenues, expenses and debt found in New Jersey Comprehensive Annual Financial Reports, state revenues increased 23% from 2007-2017, while state expenses have increased 45% and state debt increased 382% during the same period.

RELATED:

CNB BUSINESS NEWS

NJ TRANSIT Makes Advancement in Positive Train Control Project

FRA Gives Approval for Revenue Service Demonstration to Begin

NEWARK

– The Federal Railroad Administration (FRA) has given NJ TRANSIT approval to begin Revenue Service Demonstration (RSD) of its Positive Train Control (PTC) system, moving NJ TRANSIT one-step closer to meeting the

federally mandated deadline of PTC certification by December 31, 2020.

“Entering the RSD phase of PTC is a major milestone and a testament to the incredible work by our employees working around the clock with our contractors to ensure this important safety technology implementation remains on schedule,”

said NJ TRANSIT President & CEO Kevin Corbett.

“Two years ago, we had just 10 months to take the project from only 12-percent to 100-percent complete toward the December 31, 2018 federally mandated interim milestone for installation – we were successful.  With this announcement, and the continued support from the FRA, I’m confident we will meet the December 31, 2020 federal deadline for full implementation of PTC.”

The FRA’s approval allows NJ TRANSIT to initiate RSD on the Morristown Line between Summit and Denville.  Previously, field testing has been conducted on test trains that did not carry customers.  During RSD, NJ TRANSIT’s current safety technology called Automatic Train Control (ATC) will remain active and will not be affected by the testing.

NJ TRANSIT continues to conduct and expand its non-revenue testing on its other rail lines and is working collaboratively with Amtrak and freight operators to ensure interoperability of all PTC systems.

In December 2018, NJ TRANSIT marked 100-percent completion of the FRA’s 2018 year-end milestone for PTC that included installation on 282 locomotives and cab cars, 326 miles of wayside infrastructure such as poles and antennas and trained 1,745 employees.

Measure Brings the Project a Step Closer to Full Funding Grant Agreement for Replacement of 109-Year-Old Bridge

NJ TRANSIT is commending the U.S. Department of Transportation’s (USDOT) decision to give an improved project rating to a proposed replacement of the Portal Bridge.  The 109-year-old swing span over the Hackensack River, and its history of mechanical breakdowns, has long been a chokepoint for rail customers travelling the Northeast Corridor (NEC) between New Jersey and New York City.

“From day one, my administration has worked closely with our congressional delegation and Secretary Chao’s team to enhance this critical project that cannot wait another day — we have committed the entirety of New Jersey’s local share in the form of $600 million in EDA bonds, completed critical early construction work and developed shovel-ready plans for major construction. Today’s decision by USDOT puts us one step closer toward our ultimate goal; replacing this unreliable, century-old bridge and reducing delays for NJ TRANSIT customers,”

said New Jersey Governor Phil Murphy.

“New Jersey remains ready and willing to work cooperatively as a full partner to ensure that this project, which affects the commutes of tens of thousands of our residents daily, is completed as expeditiously as possible.”

“We are very thankful that the FTA has improved its rating of the critical Portal North Bridge project,”

said Amtrak Board Chair Tony Coscia.

“A new bridge will significantly increase reliability for the 200,000 daily Amtrak and NJ TRANSIT customers that cross the Hackensack River each day. We thank our partners at NJ TRANSIT for their leadership, FTA and DOT for their cooperation, and all of our federal and state champions in New Jersey, New York and across the country for their continued support as we look forward to progressing this critical element of the Gateway Program.”

“Any rail customer that commutes between New Jersey and New York City will attest to the importance of the reliability this bridge has on the quality of their daily lives,”

said New Jersey Department of Transportation Commissioner and NJ TRANSIT Chair Diane Gutierrez- Scaccetti.

“This antiquated bridge remains a single point of failure on the NEC, which makes its replacement a top priority. We’re grateful that the USDOT recognizes how critical this link is to the economic viability of this region and look forward to getting construction underway as soon as possible.”

“We are extremely pleased with the USDOT’s decision to advance the Portal North Project closer to a Full Funding Grant Agreement (FFGA). This critical project can’t wait any longer as this nearly 110-year-old bridge is a frequent source for delays and frustration for our nearly 90,000 customers who travel to and from Penn Station New York every day,”

said NJ TRANSIT President & CEO Kevin Corbett.

“We thank the USDOT, and our partners at the FTA and FRA, for their support of this shovel-ready project that will increase capacity and ensure reliability for the more than 450 NJ TRANSIT and Amtrak trains a day that cross the Portal Bridge.”

In September 2019, NJ TRANSIT, as the Project Sponsor in partnership with Amtrak, submitted a revised financial plan to the Federal Transit Administration (FTA).   The revised plan was adjusted to reflect FTA and USDOT feedback on a previous submissions, making more local money available for the project while keeping costs in check.  NJ TRANSIT and the state of New Jersey doubled the share of local funding toward the project, increasing the state’s contribution from $300 million to $600 million dollars.

Advancing the Portal North Bridge Project towards construction is critical to eliminating the major disruptions to train service on the NEC between Newark, New Jersey and New York Penn Station. The NEC is the busiest passenger rail line in the United States, and a long-term outage of the Portal Bridge over the Hackensack River would result in catastrophic delays from Boston to the nation’s capital.

Between NJ TRANSIT and Amtrak, more than 450 trains a day cross the current Portal Bridge carrying passengers making almost 200,000 daily trips. NJ TRANSIT alone carries approximately 90,000 customers (180,000 passenger trips) between New Jersey and New York City on an average weekday.  The bridge regularly opens to allow for marine traffic to pass, and each opening causes delays on both lines. When the 109-year-old bridge fails to properly close, the delays cascade to affect tens of thousands of customers and their families.

The replacement Portal North Bridge is designed as a high-level, fixed span bridge that will allow marine traffic to pass underneath without interrupting rail traffic. The project is one hundred percent designed, fully permitted, and has seen early work completed on time and under budget. These successes make it especially well-positioned to begin construction to provide increased reliability and capacity to rail passengers throughout the region and nation in the near-term.

Once full construction begins, the remainder of the Portal North Bridge Project is estimated to take approximately five years.

President of Philadelphia Teachers Union Calls Asbestos Issue a Humanitarian Crisis

By Kim Jarrett |

The Center Square

Pennsylvania state Sen. Vincent Hughes speaks Feb. 13, 2020, at a Philadelphia Federation of Teachers news conference on asbestos and other safety issues at city schools. Facebook / Sen. Larry Farnese

PHILADELPHIA PA–The leader of the Philadelphia Federation of Teachers (PFT) is calling for Gov. Tom Wolf to address the asbestos issue in public schools now by declaring a state of emergency.

Wolf put $1 billion in his proposed state budget for lead and asbestos remediation in the state’s schools. But with two more Philadelphia elementary schools shuttering due to asbestos, PFT president Jerry Jordan said it’s not enough.

“But we must do more, and we must do it now,” Jordan said in a statement on the PFT website. “The facilities emergency in Philadelphia’s public schools is nothing short of a humanitarian crisis.”

The PFT created the “Fund our Facilities Coalition” to ask for $170 million to clean up Philadelphia’s schools. The group cites other issues besides asbestos, including rodent/pest control, water leaks and more custodial staff to keep schools clean. Several members of the Legislature, the Philadelphia City Council as well as U.S. Rep. Brendan Boyle are a part of the coalition that has asked on several occasions for the governor to do something about the schools.

“We asked. We begged,” said State Sen. Larry Farnese, D-Philadelphia, at a PFT news conference. “And now we demand there be a state of emergency called in Pennsylvania because of the condition of our schools.”

Farnese is a member of the “Fund our Facilities Coalition.”

Some lawmakers have suggested Wolf could take money from the state’s rainy-day fund to pay for the remediation. But any money taken from the fund requires approval from two-thirds of the Legislature, Lyndsay Kensinger, a spokesman for Wolf,

told The Philadelphia Inquirer

.

\”A 10th Philly school has closed this year because of asbestos,\” said state Sen. Vincent Hughes, D-Philadelphia, the minority chairman of the Senate Appropriations Committee, on Twitter. \”We need emergency funding to fix our schools now! Broken and toxic schools must go. This is a public health crisis.\”

The PFT has called on the governor to declare a state of emergency for several months but has praised Wolf’s proposed funding for remediation using the Redevelopment Assistance Capital Program.

“The governor’s proposal to open RCAP applications to lead and asbestos remediation to the tune of $1 billion has enormous potential,” Jordan said in a statement after Wolf’s budget address. “I am extremely encouraged that the governor is taking our voices seriously and has developed a plan to bring relief.”

Ten Philadelphia-area schools have closed because of asbestos issues in the past few months. The latest closings were announced Wednesday night when Philadelphia school officials announced the temporary closures of Clara Barton and James Sullivan elementary schools.

republished by Gloucestercitynews.net with permission of

The Center Square

Moody\’s Investor Service Upgrades DRPA Bonds

DRPA’s solid metrics in recent fiscal years and management’s tight control over costs boost credit rating

“DRPA has focused over the last few years on improving governance and management practices,

focusing on core operations and successfully eliminating outstanding variable debt and swaps from its debt profile at the end of 2018. Some of the more recent management initiatives include the upgrade of SAP Enterprise Resource Planning (ERP) System to SAP HANA, the development of an asset management system and improved focus on maintenance, and the creation of a new department focused on strategic initiatives.”

-Moody\’s Investor Service

On February 4, Moody’s Investor Service (Moody’s) upgraded all of the DRPA revenue and port district project (PDP) bonds from A2 to A1. The Authority is extremely proud and excited about this recognition, as this is another important external validation of all the hard work performed by our

Board

, our staff, and our

Citizen’s Advisory Committee (CAC)

who have worked with the community and other stakeholders over the past decade to improve our finances. We’ve contained costs, restructured our debt and eliminated our swap exposure, invested in maintenance and capital projects, and more recently, in technology to support our strategic vision and mission. As a result, the Authority is at its strongest level in over 20 years.

Our financial fundamentals and results are very strong – and they have been for several years. What’s different this time is Moody’s view of DRPA/PATCO management, including the Board and staff. Under the heading Management and Governance, the Moody’s credit report states:

In addition, Moody’s cited the following strengths supporting the rationale for the upgrade, including:

Very strong liquidity; good cost control;

Solid historical financial metrics;

A manageable

5-year capital program ($810 million)

;

No plan for toll increases or any new bond debt in the immediate future; and

Positive changes in our debt structure, especially the elimination of variable rate debt and the interest rate swaps (December 2018).

While Moody’s did cite some specific “credit challenges,” we are confident our strategic focus will help us to maintain these new ratings. We believe that including the “Days Cash Outstanding” metric in the financial summary reported monthly to the Board (as suggested by the Board) will be important in our approach to monitoring and responding to the credit challenges.

The collaboration among our Board, staff and the CAC has been instrumental in our achieving this important milestone in our journey toward financial and operational excellence.