So Much For Smaller Government

New Jersey's Casino Control Commission is an independent agency which is in, but not of, the Department of Treasury. The CCC is responsible for administering the Casino Control Act and its regulations, and for supporting the tourist and convention capabilities of Atlantic City. The 5 members of the independent CCC are appointed by the Governor and confirmed by the Senate, and no more than 3 members may be from any given political party. The CCC shares its regulatory authority with the Division of Gaming Enforcement, which is a division within the office of the Attorney General.

The Christie administration has prepared draft legislation which would limit the role of the CCC to casino licensing, and consolidate all other CCC functions within the Division of Gaming Enforcement. Thus, in large part, the CCC would join the Inspector General and the Medicaid Inspector General as independent agencies which have been brought under the control of the executive branch. Governor Christie has also proposed bringing all county prosecutors under the jurisdiction of the Attorney General and eliminating the sole remaining independent investigative agency, the State Commission of Investigations.

At what point do people start to notice that the man who campaigned for smaller government is intent on expanding the executive branch at every turn?

State Commission of Investigation in the Cross-Hairs Again.

Ted Sherman of the Star Ledger reports that "some" are suggesting that the State Commission of Investigation has outlived its time. Yes, the SCI was central in investigating organized crime, especially in Atlantic City. But that was 40 years ago, which has lead "some" (including Dem. Sen. Richard Codey) to question whether or not the SCI model is outmoded.

The reasons? The number of annual SCI reports has dropped precipitously -- from 3 to 2. This year it put out only 1. And that 1 wasn't about organized crime, it was about the State's governing body for high school athletics. And 20 staffers at SCI make more than $100,000 a year. And the Inspector General, Medicaid Inspector General and State Comptroller also investigate corruption.

Of course, the SCI is the sole investigative body in the State not under the control of the Governor. Which is why Senate Majority Leader Barbara Buono says the SCI is an absolutely necessary independent check on the executive branch. As Governor Christie plans to take control of the Atlantic City casino district, the elimination of the SCI would be ironic at best.

However, the true agenda has nothing to do with whether or not the SCI is outmoded, or duplicative. Since he was a U.S. Attorney, Chris Christie has shown a willingness to politicize the investigative powers of government. While other U.S. Attorneys serving under Alberto Gonzalez were fired for their refusal to bring political prosecutions against Democrats, Christie launched a major sting operating against Democrats in New Jersey and leaked an indictment involving Senator Roberto Menendez during the 2006 campaign.

Christie intends to draw all of the State's investigative power under his control, and then use that power to further his agenda. Attorney General Paula Dow has already said that political prosecutions are a priority for this administration, even though such cases are usually handled by the U.S Attorney's office. Already, the Christie administration has launched voter fraud investigations in Atlantic City and Essex County.

So, who are these "some" with questions? Other than Senator Codey, the only person cited by the article is Michael Herbert, the attorney for the New Jersey State Interscholastic Athletic Association -- i.e., the subject of the SCI's 1 report this year. And, BTW, that report was a doozy, highlighting the NJSIAA's profligate spending and perks.

Which strongly suggests that some of those "some" are speaking without attribution, laying the groundwork for the Governor's 2011 budget axe.

Truly, the only surprising part of this whole story is that the Christie Administration would even try to sway public opinion against the SCI before lowering the boom.

Budget Nuggets

I’ve come across two interesting facts while reviewing the compromise budget now working its way through the State legislature.

First, the Governor has agreed to refrain from cutting the budget of the State Commission of Investigation.

According to the web site for the SCI:

"The State Commission of Investigation was established in 1968 as an independent fact-finding agency. Its mission is to identify and investigate organized crime, corruption and waste, fraud and abuse of taxpayers' dollars. The SCI is required by law to pursue these investigations beyond the sphere of political influence or favoritism. The law also requires the SCI's findings to be made public through written reports and/or public hearings."

The Governor had wanted to merge the SCI with the State Comptroller, the only government watchdog working under the jurisdiction of the executive branch. The Governor had also wanted to merge the Inspector General and the Medicaid Inspector General with the State Comptroller, effectively bringing all of the State’s investigative powers under one roof – his roof.

None of this should be surprising to those who have followed Chris Christie’s career. As a Federal prosecutor, Chris Christie served as an advisor to Attorney General Alberto Gonzalez. Christie was privy to, if not actively involved in, the politicization of the Justice Department. In fact, in the final months of the 2006 campaign, US Attorney Christie brought an indictment against an anti-poverty agency with ties to Senator Robert Menendez, who was in a tight re-election campaign against Tom Kean, Jr. To date, that investigation remains open, although no charges have been brought.

So the concept of the Governor holding the purse strings of the State’s investigative powers, and controlling the paychecks of the investigators, was disconcerting, at best. This is a Governor who believes in using any and all means available, even means arguably not within his powers, to push forward his personal agenda.

But, for now, SCI is safe. And that’s a good thing.

The second fact to emerge from the compromise budget is that New Jersey Network, the public television station in New Jersey, will lose its State funding after December.

NJN serves a unique function. As New Jersey falls within both the Philadelphia and New York media markets, a great deal of the public broadcast programming available is geared to those states. NJN has a nightly newscast and weekly public events shows, as well as other programming, all geared towards events in New Jersey.

Currently, the State owns NJN. The idea of spinning off NJN into a private not-for-profit corporation is not a new one. In fact, it was originally proposed in 2008 by the people who run NJN. They seem to think that NJN will do better as a stand-alone entity.

Details remain to be worked out as to how the spin-off will occur. The State owns the physical assets of NJN, including broadcasting equipment. And there certainly is a scramble on to find alternative financing in the 6 months or so before the State stops providing funds.

But now more than ever, it is important that New Jersey have an independent media outlet focused on New Jersey stories. Otherwise, it would not be long before this Governor found a way to use NJN to advance his own agenda.

It's The Checks and Balances, Stupid

In New Jersey, there are four State watchdogs.  The Inspector General is an independent agency; the State Comptroller is part of the executive branch; the State Commission of Investigation is part of the legislative branch; and the Medicaid Inspector General is an independent agency within the Inspector General's office.  Having independent investigators means that any branch of the government -- executive, legislative or judicial -- can be kept honest.

As part of his budget cutting program, Governor Christie wants to merge New Jersey's four watchdogs into one agency. And, not surprisingly, he wants all the inspectors combined with the State Comptroller in the executive branch.  Since the State Comptroller is appointed by the Governor for a 6 year term, the Governor's plan means that the one person in charge of State investigations, former Federal prosecutor Matthew Boxer, will be answerable to the Governor when his 6 year term ends in 2012.  Ask Justice Wallace -- I'm sorry, former Justice Wallace -- what that means for the future of checks and balances in State investigations.

For purposes of clarity, the Inspector General is also appointed by the Governor.  However, once appointed, the Inspector General serves for the Governor's entire term.  The current Inspector General, Mary Jane Cooper, has served in that capacity since originally appointed by acting Governor Codey.

Now, by operating of our State Constitution, New Jersey has the most powerful Governor in the nation.  Our Governor has a line item veto, which the President does not have.  But even the New Jersey Governor cannot eliminate the State Commission of Investigation.  That's how important the office is viewed within the context of our Constitution.  What the Governor CAN do is cut the funding to the State Commission of Investigation, which he has proposed doing.  He wants the agency's budget cut by about 75%.  There is no precedent for such a de-funding.

What makes this more than just a tale about cost-cutting and, perhaps, power-grabbing are certain facts from  Governor Christie's tenure as U.S  District Attorney.  As a federal prosecutor, Chris Christie was one of seventeen Federal prosecutors who served as advisers to former Attorney General Alberto Gonzalez.  The United States Attorney General is supposed to be an independent entity.  But under President Bush, advisor Karl Rove was charged with using every branch of government to further the political goals of the President and the Republican party.  And so, the Attorney General became a political partisan.

Lawyers interviewing for jobs as Federal prosecutors were vetted for their political views.  And Federal prosecutors were urged to bring indictments that would affect elections.  Some prosecutors were forced to resign after refusing to bring such political prosecutions.

As a respected member of the now-politicized office of the Attorney General, U.S. Attorney Chris Christie brought an indictment against a North Jersey anti-poverty agency with ties to Senator Robert Menendez.  At the time, Senator Menendez was in a close re-election battle against Republican Tom Keane, Jr., son of the popular former governor.  The indictment was announced a few months before the election; to date, the indictment has resulted in no charges, but the District Attorney's office continues to refuse to clear Menendez' name.

Now, there is no agency charged with investigating Federal prosecutors for bringing prosecutions for political purposes.  However, the Attorney General is answerable to Congress.  Ultimately, Alberto Gonzalez was forced to resign under threat of being indicted for lying to Congress.  Lying about firing federal prosecutors for not bringing political indictments.

Chris Christie was not an innocent bystander to the politicization of the United States Attorney General's office.  As an influential advisor to Alberto Gonzalez, he was one of the architects.  Against this backdrop, it's clear that his move to bring all State investigatory activities under the authority of the executive branch is part of a pattern, a long-standing pattern of harnessing investigative power for partisan purposes.

Governor Chris Christie has attacked the independence of the judiciary; he has superseded the legislature on a number of occasions, giving rise to several law suits; and now he seeks control of the State's investigatory powers.  How long will it be before employees of the State Comptroller, both current and prospective, are vetted for party affiliation?

You can call this a lot of things, but don't pretend this is about balancing the State budget.