McGreevey 3-ways: He says yes, she says no. What's new?

It's not exactly 'Sex and the City', but Plainfield's most famous resident is getting a lot of notice over those alleged threesomes with his aide and wife Dina Matos McGreevey.

Except that Jim says they aren't 'alleged' at all, and that he had originally included them in his memoir, published last year.

Links to today's installment are listed below -- you decide if the Post or the Daily News is the juicier.

Meanwhile, coming down Prospect Avenue mid-afternoon Monday, a news photographer was spotted in full bloom parked in front of the ex-Gov's mansion, snapping pics of a blonde in an SUV parked on the other side of the street.

---

• McGreeveys: "Jim supports tale of sexual trios; Dina denies it" -- Ledger | NYPost | DailyNews |

--Dan Damon

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Council asked to designate McWilliams memorial plaza

The Al McWilliams Memorial Committee presented its report to the Plainfield City Council Monday evening, recommending a location for a memorial by the City to the late two-term mayor.

In a presentation by committee members Annie McWilliams, Al's oldest daughter, Linda Payne and Mary Burgwinkle, the group -- with representatives drawn from throughout the city's four wards -- proposed that the City Council designate the triangular public space on the southeast corner of East Front Street and Park Avenue as the 'Albert T. McWilliams Jr. Memorial Plaza'.

The proposal included raising the funding for a statue by public subscription, to be installed at a later date.

The Council received the proposal warmly, and it appears on track for adoption by resolution in time for a special service at Shiloh Baptist Church on Sunday, April 6, the first anniversary of Mayor McWilliams' passing.

---

-- Dan Damon

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Policing Plainfield: Santiago to replace Santiago?

Front page of today's Trenton Times.

Plainfielders who attended Monday evening's City Council agenda-setting session heard a level-headed presentation by Mitchell Sklar, executive director of the State Police Chiefs Association, in defense of keeping the position of Chief of Police.

Sklar refuted several points made by Trenton's civilian police director, Joe Santiago, in a presentation to the City Council earlier this month -- in particular that there is a law known as the 'police chiefs' tenure law' (not so), citing case law to bolster his assertions.

One of the rumors that has been swirling around since Joe Santiago entered the lists on the side of the Green/Robinson-Briggs administration is that if the move to eliminate Plainfield's chief's position is successful, Trenton's Joe Santiago would become the new civilian police director in Plainfield.

I scoffed, and not just because he would come at a hefty price tag that would totally blow away the City's contention that this rejiggering is based on REASONS OF ECONOMY -- that is, it should cost less to implement than the current arrangements.

I also expected that he would stay in Trenton because Mayor Doug Palmer and his administration would prevail in the suit over Santiago's failure to meet Trenton's residency requirement (he lives in Stirling, not Trenton).

Was I wrong.

Joe Santiago, now Trenton's ex-police director.

The Trenton Times broke the news online yesterday that Superior Court Judge Linda R. Feinberg, in a 58-page decision, ruled against the city and Santiago, declaring the position "immediately vacant."

So, maybe the rumormongers were on to something, and Joe Santiago is headed to Plainfield?

His commute would certainly be shorter.

---

• Trenton Times: "Judge says city police director must give up post"
• Ruling: "Forester et al v. Santiago et al" (PDF)
  

-- Dan Damon

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To Barak & Hillary: It's now about the economy, smarties!

(Links to market meltdown stories are at end of post.)

As Wall Street and the world financial markets stand on the verge of a meltdown, Fed chair Ben Bernanke -- showing he is willing to work weekends and holidays -- announced emergency measures Sunday evening designed, he believes, to steady the markets and restore calm.

Asian markets immediately took a nosedive.

Obama and Clinton need to wake up immediately. The 'experience' argument is dead in the water -- no one in living memory is going to have the experience to deal with the mess the world faces that has been triggered by the collapse of the subprime mortgage market and its seemingly endless ripples.

Health care as an issue is going to take a back seat. Alleged foreign policy experience isn't going to make the difference. (Read the tea leaves in the links at the end of this story.)

Remember the line that tanked Bush père: "It's about the economy, stupid!"

Well, it's about the economy, smarties!

---

• Wall Street Journal --
• "J.P. Morgan Buys Bear in Fire Sale; Fed Widens Credit to Avert Crisis"
• "Fed Aims to Prevent Panic With More Direct Borrowing" -- Read the fine print.
  
  
• Bloomberg --
• (Breaking): "Stocks Tumble Around World, Dollar Declines After Fed Cuts Rate"
  
• "Fed Lends More to Avert Meltdown" -- "...putting the Fed's balance sheet in harm's way".
  
• "U.S. Futures, Global Stocks, Dollar Decline After Fed Cuts Rate"
  
  
• Two of my fave financial bloggers --
  
• Reggie Middleton: "This is going to be a scary morning" -- Street savvy New Yorker.
  
• Willem Buiter: "Rescuing the Bear: why and why this way?" -- Paragraph two will make your eyes pop. A Bagehot-style tough-love advocate. Not anything the Fed or Bush has the stomach for. As for whether the weekend action passes legal muster, see here.
  

-- Dan Damon

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McGreevey bombshell: Ex-aide alleges trysts with McGreevey and Dina

In a story posted at 5:22 PM on Sunday, the Star-Ledger reveals allegations by a former aide to Jim McGreevey that for two years McGreevey, his wife Dina Matos McGreevey and the aide had regular Friday night sexual trysts.

Read the breaking story: "McGreevey aide says he had sexual trysts with ex-governor, wife" and the Monday print edition story here.

If you want LURID, check out the NY Post here.

--Dan Damon

Open House Today: The Plainfield Hunt Club, 977 Belvidere

The Hunt Room

You can get a peek today at one of Plainfield's luxurious estate homes -- which is also a unique part of Plainfield's Gilded-Age history.

John De Marco of Coldwell Banker Realtors^® will host a public open house (1 to 4 PM) at 977 Belvidere Avenue, site of the exclusive, but now long-gone, Plainfield Hunt Club.

Nestled into a 2-acre triangular lot at the intersection of Belvidere, Woodland and Rahway Road, you can envision when the Plainfield Hunt Club anchored an extensive and undeveloped wooded area covering all of the Woodland, Prospect, and Rahway Road area in the late 19th century, before the area was residentially developed.

"Hunt Clubs", along with Country Clubs and Casinos, arose toward the close of the 19th century as places for the local well-to-do to socialize.

While I do not know whether much hunting was done at the Plainfield Hunt Club, I'll bet that a lot of whiskey and cigars were consumed in a gents-only atmosphere.

The Plainfield Country Club, further down Woodland Avenue, was founded in 1900 and the Plainfield Casino, which once stood at West 7th Street and Arlington Avenue flourished in the same period.

The Plainfield Casino once stood at 7th and Arlington.

---

• Garden State MLS: "977 Belvidere Avenue" -- Click on image to view a page of photos.
  
  
• Plainfield Public Library: The Blueprints collection has some plans for this address here and postcard views of the Plainfield Casino and the Plainfield Country Club can be found here.
  
  
• Google: A search (see here) turns up a 1912 mention of Hugh C. Pierce, president of the American Engine Company of Bound Brook as being a Republican and a member of the Harvard Club of New York and the Plainfield Hunt Club.
  
  
• The Plainfield Casino: You can view an 1895 New York Times society page story of events at the Plainfield Casino (see here).
  

-- Dan Damon

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Corporation Counsels: A curious tale

Plainfield, like all municipalities, has a Corporation Counsel, as required by the city's charter.

The Corporation Counsel is essentially the town's lawyer, looking over the town's business and activities, rendering legal advice, reviewing legislation, assessing risk and liability, and overseeing the attorneys hired to do specialized work.

So, this person is the attorney for the Corporation.

And, as we know, THE COUNCIL IS THE CORPORATION in New Jersey, the Mayor being the Corporation's executive officer under a charter like ours.

The Corporation Counsel's job is to represent the interests -- including the fiduciary interests -- of the Corporation, meaning the Council, right?

As Bill Clinton might say, that might be a 'fairy tale'.

The situation in Detroit, where the City Council is now at loggerheads with Mayor Kwame Kilpatrick (pictured above), is informative.

Briefly, the Mayor is under fire for lying to prosecutors about whether he had a romantic relationship with his chief aide. It is not the relationship that is the problem, but the lying about it under oath. The Detroit Free Press uncovered the lies in the course of investigating why the City settled with some of its cops in a lawsuit.

Turns out the cops were fired for blowing the whistle on some of Mayor Kilpatrick's activities. Their suit was ended without a trial when Kilpatrick signed off on an $8.4 million settlement with the cops.

Which, of course, needed City Council approval (Councils have the power of the purse).

So why then did the Corporation Counsel for the City of Detroit urge the Council to sign off on the settlement without disclosing to them the perjurious situation of the Mayor and the evidence (text messages) on which it was based?

Why indeed?

Councils everywhere should ponder whether, when push comes to shove, their Corporation Counsel sees itself as representing THE CORPORATION'S interests or THE MAYOR'S.

And what to do should the need arise.

---

• Detroit Free Press: "Council kept in dark on settlement details"

-- Dan Damon

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Davis DWI: About Plainfield's non-working Breathalyzer

A Breathalyzer.




The newer Alcotest.

Readers have asked about Plainfield's Breathalyzer, mentioned in both the Courier and Plaintalker stories about Council Don Davis' DWI trial in Scotch Plains municipal court.

The Ledger's blog item (originally posted on Wednesday evening and giving Bernice Paglia the nod for breaking the story) had nineteen comments as of my last check -- many of them highly critical of the Plainfield police's conduct of the case, both with regard to the gathering and delivery of discovery documentation (see my post of Thursday evening on the 'missing' documentation here), and the 'non-working' Breathalyzer.

A word of clarification on the Breathalyzer. Though the term is used to describe several different kinds of tools for analyzing breath alcohol content, the actual tool used in the Davis case appears to be the newer Alcotest technology, just coming online throughout New Jersey.

First, sources tell me, breath analyzers are not the property of the local police department, but of the state. And the state is responsible for repair and/or replacement of damaged or otherwise defective equipment.

Plainfield, I am told, has had two breath analyzers, one of which has not worked for a long time and has never been repaired or replaced by the state. The other one turned out not to work when needed in the Davis matter, and the Plainfield police utilized Fanwood's equipment, under a procedure which was already in place.

The timing is of interest because New Jersey was just at that time having the courts render a decision on the new DUI test which would replace the older Breathalyzer technology, which is now about fifty years old. (For those interested, a link to an article on how the older Breathalyzers work can be found at the bottom of this post, as well as information on the Alcotest matter.)

Consequently, Plainfield was caught in a situation where the state appears to have been winding down use and repair of the old Breathalyzer equipment and not yet fully ready to proceed with the new technology, leaving local police departments -- of which Plainfield is only one -- hanging between the old and new technologies.

It is unfair to infer that the Plainfield police were somehow less than professional in the way they performed their duties in the Davis matter -- as several commentators on the Ledger blog have asserted.

A better question here would be: What is the state doing to move forward with the new technology, supply ALL local police departments with the new equipment and train and certify local police in its use?

Whether or not the flap over the discovery documentation leads Judge Inacio to reverse himself on the Breathalyzer charge, Councilor Davis still faces a charge of DWI.

The prosecution in that charge will no doubt introduce testimony concerning the Councilor's performance on standard 'field sobriety tests'. A link to New Jersey Lawnet's article explaining those field tests is provided below.

---

• Plainfield Plaintalker: "Judge Dismisses Major Charge Against Davis" -- Ledger: lots of comments here.
• Courier: "Davis wins first round in court"
• Ledger blog: "Judge dismisses charge against Plainfield councilman" -- Note: The original post, citing the Plaintalker, has been supplanted by an updated story, though the COMMENTS from the original breaking news post remain.
• How Stuff Works: "How Breathalyzers Work"
• Verkammen & Associates: "The Alcotest Breath Machine"
• NJ Lawnet: "Standardized Field Sobriety Testing"

-- Dan Damon

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Davis DWI: Missing documentation sparks speculation

Plainfielders who read the coverage of Councilor Davis' DWI trial in Scotch Plains municipal court this morning -- in the Courier and the Plaintalker -- may have sighed when they came to the part about Plainfield not seeming to comply with the discovery order -- that is, o supply materials requested by the defense in a timely fashion. What?! Did Plainfield drop the ball?

Well, friends, it may just be that the Plainfield Police Division did NOT drop the ball. The streets and City Hall were crackling this afternoon with assertions that Plainfield not only prepared the materials, but DID SO IN GOOD TIME.

So, the question now is: How could Scotch Plains prosecutor Thomas Russo claim not to have received them?

Where was the chain broken? How? Why? Was there skullduggery?

As they say in CSI shows: Who had a motive? Who had an opportunity?

My bet is we haven't heard the last of the discovery documents yet.

---

• Plainfield Plaintalker: "Judge Dismisses Major Charge Against Davis" -- Ledger: lots of comments here.
• Courier: "Davis wins first round in court"

-- Dan Damon

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Newark cop tussle shows Plainfield the dangers

Newark's tussle between its civilian police director and its chief of police mirrors Plainfield's -- sort of.

Putting politics into play in policing certainly has its costs, as Newark -- and soon, Plainfield? -- show. Newark is already in court with a suit by its superior officers' union over the police director's attempts to make the day-to-day decisions in running the PD.

Now, the Newark chief is serving a five-day suspension for rescinding a bunch of personnel moves ordered by the Director. Sound familiar?

Restructuring the department certainly seems to be a policy matter and within the prerogatives of the Director, but the dispute centers on making specific personnel decisions. And the Newark chief's refusal to knuckle under to interference in his day-to-day operation of the department earned him the suspension.

In Plainfield's case, Chief Santiago will probably argue that the administration of Mayor Sharon Robinson-Briggs has not acted "in good faith" and "without political interference" in eliminating the police chief position.

The "political interference" point may be made more bluntly in Chief Santiago's case than in Newark's. I have heard that members of the Plainwood Square Merchants Association were told by an elected official at a meeting that "Ed Santiago has to go because he is not a 'team player'". And that they are prepared to testify to that in court.

(One irony making the rounds with regard to removing Santiago and appointing a "captain-level" officer to manage the PD on a daily basis? If he returns to Captain status, Ed Santiago will be the SENIOR Captain, the logical choice for the day-to-day operations assignment. Hmmm. And then, of course, there is the hefty raise he will receive as Captain, which was blocked while he was Chief. And the Green/Robinson-Briggs administration argued to the state that this was an "economizing" move?)

Meanwhile, if we needed more evidence that having a civilian police director opens the door to politicization of the city's police force, we have to look no further than the corruption trial of former Newark mayor Sharpe James, where a cop testified last Thursday that he was ordered to -- WHILE ON DUTY -- purchase an air conditioner for James' girlfriend Tamika Riley, and take another cop along to her Jersey City apartment and install the air conditioner.

And this took place during the tenure of Police Director Joe Santiago, whose views on the virtues of a civilian director were solicited by the Green/Robinson-Briggs administration, and who, in a presentation to the City Council, said --

"an appointed police director, by design, would be "transparent and more responsive" than a sworn chief"

(see complete story on Joe Santiago's presentation here).

The 'transparency' seems not to have been much in evidence when the officer was instructed to buy and install the mayor's girlfriend's A/C on the city clock.

And then there is the matter of using ticket sales to Sharpe James' annual birthday bash in police officers' annual performance reviews -- another 'transparent' item which took place under Joe Santiago's watch, but only came to light after he and James were removed from the scene.

Council President Harold Gibson was cited in Wednesday's Ledger as graciously consenting to let spokespersons for the state's police chiefs come before the Council next Monday evening to refute Joe Santiago's points. Briefly, of course.

Plainfield's City Council still has a chance to keep from letting the genie out of the bottle.

But will it?

---

Ledger: "Plainfield to hear cons of cutting cop chief job" -- Police chiefs get to make points.
New York Times: "Newark Chief Is Suspended in Police Personnel Dispute"
Ledger: "Substitute Newark police chief retracted" -- Booker between rock and hard place.
Ledger: "Cop offers chilling tale at ex-mayor's trial" -- Installing girlfriend's A/C while on duty.
Plainfield Today: "Police chief matter enters new -- and dangerous -- phase" -- Good faith? Without political interference?

-- Dan Damon

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Malcolm and Flora Dunn honored

Plainfield's former 3rd Ward Councilor Malcolm R. Dunn and his wife Flora were recently honored by the NJ Sharing Network for the largest personal gift ever received by the organ donation organization.

"We are deeply appreciative of the services that were rendered to our son, Mark Cameron Dunn, by NJ Sharing Network," the Dunns said. Through the services of the Sharing Network, their son Mark had the benefit of two kidney transplants.

"It seemed appropriate to use our 50th wedding anniversary as an opportunity to give something back and so we asked our guests to make contributions to the Sharing Network Foundation to specifically fund public awareness programs in the African American community," they continued. As a result, $22,000 was generated by the guests and the Dunns, making it the largest personal gift ever made to the NJ Sharing Network.

Organ donation save lives, pure and simple. But it is an option that many people are unaware they can provide for in advance, so that their families will know their wishes and what to do when the occasion arises.

For several years, Mayor Sharon Robinson-Briggs brought the awareness of this life-saving opportunity to the residents of Plainfield when she was outreach coordinator for the Foundation.

The Legislature is currently considering making a checkoff part of the driver license renewal process. This opportunity would certainly raise awareness and boost the numbers of people who make provision to aid the effort.

To learn more about the Foundation and how to donate or support its work, visit www.sharenj.org, call (800) SHARE-NJ or send an email to info@sharenj.org.

-- Dan Damon

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Fed in back-door bank bailout today?

The Fed has kicked in $200 billion in what may be a back-door bailout to a financial industry ensnared in a credit crisis of its own making.

In a story posted just before noon (more here), the NY Times brings word that the Fed will allow these troubled financial institutions -- including the major investment banks (Bear Stearns? Morgan Stanley?) -- to borrow 'ultra-safe Treasury money by using some of their riskiest investments as collateral'. Bloomberg also put out an item -- see end of this post for link.

Instead of getting the money for the usual few hours (often referred to as 'overnight'), borrowers will get to keep the money for 28 days. The Times notes that the assets pledged -- which are linked to home loans -- must have a premium credit rating.

Wowee! A premium credit rating given by those same rating firms who are under fire both for their ratings practices with regard to the CDOs, CMOs and other financial confections, and in the marketplace for their OWN CREDIT RATINGS?

Why am I suspicious this is a back-door bailout? What happens on day 29 when the borrowers cannot make good?

Honor among thieves?

---

• NY Times: "Fed to Lend $200 Billion More to Ease Market Strain"
• Bloomberg: "Fed to Lend $200B, Take on Mortgage Securities"
  

-- Dan Damon

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Become a Republican to get a Dem-controlled job? In NJ?

Those clever, clever Democrats. Is this cool or what? Middlesex Dems are being accused of getting a judge to register as a Republican so she can be given a judgeship where they are to be apportioned between the two parties. Read on (from today's Ledger, here)--

Court choice gets third degree from GOP
Middlesex prosecutor is doubted on sincerity of her party affiliation

Tuesday, March 11, 2008

BY RICK HEPP
Star-Ledger Staff

Republicans on the Senate Judiciary Committee yesterday grilled a Superior Court nominee from Middlesex County to find out whether she was truly a Republican, as she first declared last summer, or a Democrat in conservative clothing.

The hearing was rocky from the start for Andrea Carter Latimer, an assistant Middlesex County prosecutor. Republicans spent more than half an hour interrogating her on why she switched to the GOP after being an independent voter for more than 10 years.

The committee ultimately approved her appointment, 6-2, with two Republicans opposed and a third abstaining. But the hearing took its toll on Carter Latimer, who left the room visibly shaken and leaning on her family for physical support.

During the hearing, Carter La timer told lawmakers she had conversations with three Democratic legislators and the Middlesex County assignment judge about her interest in becoming a judge. But she said she decided to register with the GOP because it was aligned with her political philosophy.

"Did any of them suggest to you that it would be a good idea to fill out a registration form registering yourself as a Republican?" asked Sen. Gerald Cardinale (R-Bergen).

"No," she said. "What was im parted to me was that if I am affiliated one way or another, that I needed to make that known.

"Have you generally voted for Republican candidates?" Cardinale followed.

"Sir, I can't think back to everyone that I voted for over the years," Carter Latimer said. "I will say that every time I went into a voting booth, I pulled the curtain behind me and I voted in accordance with what I thought was Republican guidelines and ideology."

When pressed, Carter Latimer could not define those guidelines and ideals, nor could she provide any evidence beyond her voter registration last year that she was truly a Republican.

"I cannot give you any objective evidence, sir, other than to say that I am comfortable in my own skin with my actions and I am comfortable with my actions in this case," she said.

Sens. Bill Baroni (R-Mercer) and Jennifer Beck (R-Monmouth) voted against the nomination, while Cardinale abstained.

Democratic senators apologized to Carter Latimer near the end of questioning, saying she was caught in the middle of a dispute between lawmakers on how the long-ruling Democrats choose Republican judges in Middlesex County. The governor is supposed to choose equally between the two parties when filling open posts, although there are currently 220 Democrats serving as state Superior Court judges and only 192 Republican judges.

"I understand the concerns of colleagues on the other side," said Sen. Paul Sarlo (D-Bergen). "I'm sorry that you had to sit through a discussion that we should be hav ing."

Carter Latimer is currently in charge of the sex crimes unit in the prosecutor's office. She is considered an accomplished trial attor ney, most notably winning convic tions against serial rapists Bruce Sterling and Ricardo Cepates in separate cases. Her nomination now goes to the full Senate for consideration."

Who'd a thunk it?

---

-- Dan Damon

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Hillary to Spitzer: Best Wishes...

This just in from SLATE --

"No, this is not cool. Asked to comment on Spitzer, Hillary Clinton told reporters, "I obviously am sending my best wishes and thoughts to the governor and to his family."

What? This is all she can think of to say? Mr. Ethics turns out to be patronizing pricey prostitutes, a sleazy, sexist, act which may yet cost him his career, and Hillary sends him... her "best wishes?" (Is there a Hallmark card for this?)

Asked if she thinks Spitzer will survive politically, Hillary wouldn't comment further, saying "let's wait and see what comes out of the next few days."

-- Dan Damon

City Councils: NPR humor

Just had to share this one, heard on the Brian Lehrer show on WNYC-FM, Tuesday in the 10 AM hour (speaking of New York City's council, of course) --

Question: What's the difference between a City Council member and a rubber stamp?
Answer: The rubber stamp leaves an impression.

Who says NPR programs don't have a sense of humor?

-- Dan

Charity-care shocker: Solaris shifting loss to Muhlenberg?

Muhlenberg's fate was discussed in a Gannett state bureau story in Tuesday's Courier.

Unfortunately, the story is not on the Courier's or the Home New Tribune's websites. The Asbury Park Press, whose servers deal up both CN and HNT stories are having technical problems this morning.

Herewith, I am posting the Muhlenberg/JKF section -- plugged in by local reporters to the state story -- and you will find the master story from the APP at the bottom of the page.

The Muhlenberg section [emphasis added] --

The New Jersey Hospital Association applied the formula using 2006 claims and concluded that 26 hospitals that share $46 million in charity-care aid today would lose all their aid, including Jersey Shore University Medical Center ($5.4 million), JFK Medical Center ($4 million), Community Medical Center ($3.7 million) and St. Peter's University Hospital ($3 million).

Steven Weiss, spokesman for Solaris Health System which operates Muhlenberg Regional Medical Center in Plainfield and JFK Medical Center in Edison, said the corporation's finance department is still reviewing the numbers provided by the state and is trying to determine what impact the change will have on Muhlenberg.

Does that mean Solaris is trying to find a way to save Muhlenberg? Or trying to find a way to shovel the entire $4 million fund loss over onto the Muhlenberg books?

If it's the latter option, would doing so make JFK look artificially healthier than it really is financially?

Keep an eye open.

---

Asbury Park Press
March 11, 2008

Some hospitals face complete loss
of charity care aid

By MICHAEL SYMONS
GANNETT STATE BUREAU

Financial aid from the state to hospitals for treating uninsured patients would be slashed to facilities large and small, urban and suburban, under a proposed charity-care formula announced Monday by state officials.

Details about each facility's aid will not be known until June. But under one simulation done by the New Jersey Hospital Association, more than two dozen hospitals would lose all of their funding. Some may see aid increases, however, if a series of restrictions on aid growth now in effect are discontinued.

Health and Senior Services Commissioner Heather Howard called the proposal "the start of a conversation" about how to reduce charity-care aid by $108 million, among the spending cuts in Gov. Jon S. Corzine's proposed $33 billion state budget.

This year, the state is providing $716 million for charity care. For the upcoming year, Corzine has proposed reducing that to $608 million — a 15 percent cut, overall — and steering more of what remains to safety-net hospitals in poor areas.

"We are expecting everybody to do more with less, but we didn't feel that they should sustain a greater cut," Howard said of safety-net hospitals. "We felt this was a cut that could be sustained, but not greater, which is why the cuts are graduated."

Hospitals would be grouped into three tiers, based on how much of their total revenues come from charity care, a term used for treatment given to the uninsured:

— Those where charity care accounts for more than 8 percent of revenue would see their aid cut by 5 percent.

— Those where charity care accounts for 3.6 percent to 8 percent of revenue would receive 34 percent less aid.

— Those where charity care provides less than 3.6 percent of revenue would get none.

Howard couldn't say how many hospitals would fall into each tier because aid will be distributed based on 2007 claims data — numbers the state doesn't expect to have until June. But she said the most recent data indicates one-third may fall into each group.

The New Jersey Hospital Association applied the formula using 2006 claims and concluded that 26 hospitals that share $46 million in charity-care aid today would lose all their aid, including Jersey Shore University Medical Center ($5.4 million), JFK Medical Center ($4 million), Community Medical Center ($3.7 million) and St. Peter's University Hospital ($3 million).

For others, the reductions might not be clear-cut. After the state for years used out-of-date information to calculate aid, the current year's transition to more accurate data was phased in to limit hospitals from huge gains or losses in aid.

Eighteen hospitals may receive more money, based on the increasing number of charity-care patients they are treating. Three dozen others could face minuscule or massive cuts, depending on whether those aid-shielding circuit-breakers are continued.

"With cuts of this magnitude, they (hospitals) will need time to make some hard choices about cutting services, eliminating jobs or even if they can stay open at all," said Betsy Ryan, chief operating officer of the New Jersey Hospital Association.

Corzine's proposed budget includes a $35 million "health care stabilization fund" within that $608 million for charity care. That would be used to address the financial needs of health-care providers to ensure access to care exists in all communities.

That $35 million might not be all distributed to hospitals, Howard said.

"Our goal is to ensure access to services, and I think if we talk about health care in the 21st century ... there are many ways to meet the needs of the community. And so it may be extended hours at a community health center," Howard said. "There are different ways to meet those needs — bus service. There are a variety of ways to meet the needs of a community. It very well may be to a hospital, but it may not be.

Link to Asbury Park Press online story here.

---

-- Dan Damon

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NJT Overpasses: New Traffic Patterns Today

Central Avenue was returned to two-way north/south traffic Monday afternoon as NJT workers cleared away the barricades.

The large crane used to hoist portions of the overpasses on the continuing reconstruction project was relocated to Madison Avenue (one way southbound), which looks to be closed to through traffic Tuesday morning.

Liberty Street (northbound only) remains open.

New Street (southbound only) remains closed to through traffic.

NJT's reconstruction project for the four bridges is expected to be finished next year.

---

-- Dan Damon

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Spitzergate Links: Scandal and Political Fallout

Elliot Spitzer, New York governor and Sheriff of Wall Street will now forever be known as Client No. 9. and you can check it all out here.

I was stunned to catch the breaking news on Bloomberg radio Monday afternoon, and when the link to the live press conference failed, I switched to 1010 WINS in time to catch it.

What a stunner!

The story has now split into two tracks: the prurient and the political.

Anyone who wants to know the what, where, when, why, who and how of Spitzer's pay-to-play will get their fill soon enough.

The man who once threatened the head of Goldman Sachs with 'war' now finds the tables turned. Cheers went up on the floor of the stock exchange when the news broke, and some think it not an accident that his bank was so scrupulous about reporting the unusual activity in his bank accounts.

Google reported that since yesterday, 9 out of 10 searches have involved the word 'Spitzer'. The mighty New York Times -- which broke the story on its website early Monday afternoon -- had its servers nearly brought to their knees: page load time increased from an average of 3 seconds to 20 seconds. Enquiring minds want to know!

As a public service, I am posting a few choice links below --

New York Times - Broke the story (its encyclopedic coverage at bottom of this page):

• "Spitzer Is Linked to a Sex Ring as Client" -- Final version of THE breaking story.
• "Revelations Began in Routine Tax Inquiry" -- 'Suspicious activity' in his personal bank account.
• "The Method of Payment May Decide Any Charges" -- Wire transfers across state lines. Hmmm.
  

Wall Street Journal:

• "Spitzer Engulfed in Sex Scandal"
• "Wall Street Cheers As Its Nemesis Plunges Into Crisis"

Fox News: "Sources: Spitzer to Resign Following Reports of 'Involvement' With Prostitution Ring"
Daily News: "Gov. Spitzer tied to prostitution ring"
NY Post: "NY's Naked Emperor" -- Lurid, of course.
NY Sun: "Spitzer's Future as Governor in Doubt"
NY Observer: "McCall Says Paterson Is Ready" -- NY's Lt. Gov. would serve out balance of term.
Village Voice: "How Spitzer Scandal Could Help Joe Bruno" -- NY's GOP heavyweight.

Star-Ledger:

• "For Jersey leaders, uncomfortable echo of '04"
• "Americans can stomach a sinner but not a hypocrite"
• "A lucrative club counted on discretion"

Politico: "Spitzer's sudden fall throws shrapnel across political landscape" -- Including Hillary.
WashPost: "Shock and Smirks on Wall Street"
Harper's Magazine: "Spitzer Sex Sting: A Few More Questions" -- Bush DOJ bags another Dem gov.
Slate: "Spitzer Gets Spitzered" -- Bagged by technique he pioneered.
Valleywag: "Three things you can learn from Client No. 9"

New York Times - Encyclopedic -- of course! -- coverage:

• "Spitzer Is Linked to a Sex Ring as Client" -- Final version of THE breaking story.
• "Revelations Began in Routine Tax Inquiry" -- 'Suspicious activity' in his personal bank account.
• "The Method of Payment May Decide Any Charges" -- Wire transfers across state lines. Hmmm.
  
• "White Knight to Client 9: A Stark Fall" -- His style and the Wall Street reaction.
• "Eliot Spitzer's Apology" -- Video of the press conference.
• "Milestones in an Ambitious Career" -- An interactive timeline.
• "Podcast: The Back Story" -- A podcast with the Times' Sewell Chan.
• "The Criminal Complaint" -- Text of the Federal criminal complaint (PDF).
• "Prosecutor's Press Release" -- Text (PDF).
• "Affidavit: Client 9 and Room 871" -- FBI agent's report.
• "The Days Under Scrutiny" -- Hour-by-hour, Feb. 11 through 14.
• "Spitzer Allegations Send Wave of Shock" -- Reactions: Albany to Wall Street to Main Street.

-- Dan Damon

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One more consideration on having a police director

So, while the Green/Robinson-Briggs administration's scheme to get rid of Plainfield Police Chief Ed Santiago by eliminating the position of police chief advances through the legislative process, another consideration comes to light.

After the Courier editorialized Friday on what a poor choice was made in picking Trenton Police Director Joe Santiago (no relation) to make the PR pitch for the switch, I was surprised to note in Saturday's Times of Trenton that the City of Trenton was in court challenging its own residency ordinance, arguing that it is invalid.

You have to read the story to get the Keystone Cops flavor of it all.

You will probably not be amused to note the number of lawyers for whom work is being made here: Mayor Doug Palmer is represented by legal (and Dem) heavyweight Angelo Genova; Joe Santiago has Salvatore Alfano of Bloomfield; Trenton's City Council is repped by Daniel Corrigan of Keyport; and the citizens who sued the city over Santiago's residency in the first place have hired George Dougherty. Money will be made, whether or not justice is served.

In any event, Trenton's mud-wrestling match is over changes made over the years to the city's residency ordinance and whether or not the Mayor -- ipso facto -- has the authority to grant waivers.

With Plainfield's new ordinance contemplating the possibility that a police director would be replaced every four years -- with the change of administrations (will Jerry Green ever be foolish enough again to grant an incumbent TWO terms?) -- the question of residency and whether or not a waiver will ever be needed will surely come back to haunt.

Especially if future City Councils are not as supine as at present.

As I said before, better not to let the genie out of the bottle.

---

• Editorial, Courier: "Plainfield makes wrong choice in PR effort"
• Times of Trenton: "To keep cop director, Trenton argues its residency law invalid"

-- Dan Damon

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How you can profit from the real estate market

In case you want to cash in on the real estate boom, I have a book for you: David Lereah's "Why the Real Estate Boom Will Not Bust, and How You Can Profit From It".

Published in February, 2006, it is a breathless outline of all you needed to do to cash in on the real estate boom, the one that was going to last forever. I'm not intending to be cruel in bringing it up, but it is a useful illustration of a lesson to be learned.

A couple of months earlier, in December, 2005, John F. Carter, a full-time trader and fund manager had published a book -- "Mastering The Trade" -- on market analysis and a step-by-step approach to becoming a successful trader.

Along the way, Carter's book is chock full of illustrations of how to assess when to get into -- and out of -- a market as it develops.

Including this insight about the real estate market --

Although there are no guarantees in the market, here is one 'almost' guarantee: As soon as Wall Street announces a special vehicle for trading a particular market or strategy, then that market or strategy is done for. ... [An] example? Wall Street's pushing of home-loan-backed CMOs (Collateralized Mortgage Obligations) is a clear signal that the housing market is about to go in the toilet. The moral of the story? When Wall Street decides to package [something] up, put a bow on it, and sell it to the public, that move is over. [Emphasis added.]

Remember that this is in a book published in December, 2005 -- which means that the author had this insight probably a year earlier, given the length of time it takes to write, edit and publish a technical book. So, by late 2004, there were people that saw trouble coming.

Lereah, senior vice president and chief economist of the National Association of Realtors at the time his book was published had access to all the information that Carter did, yet drew the opposite conclusion.

Not only that, he got the following glowing blurbs --

“An invaluable book . . . Today’s real estate markets are booming and Lereah makes a convincing case for why the real estate expansion will continue into the next decade. This book should prove to be a truly practical guide for any household looking to create wealth in real estate.” —DEWEY DAANE, FORMER GOVERNOR OF THE FEDERAL RESERVE BOARD OF GOVERNORS

“An important book, whether you agree with the author (as I do) that housing will remain an excellent investment or are convinced that home prices are poised for a plunge, David Lereah lays out a compelling vision of housing as a continuing positive investment—and how you can profit from real estate if you already own the home you live in, are looking to move from rental housing to an owner-occupied home, or want to use real estate as an investment.” —DAVID BERSON, CHIEF ECONOMIST, FANNIE MAE

That's the chief economist of Fannie Mae, the largest mortage underwriter in the country (now in serious doo-doo over its own mortgage portfolio), AND a former Governor of the Federal Reserve. You couldn't ask for more sterling credentials.

But they turned out to be hucksters, just like the three-card monte guys that work the sidewalks near Bryant Park.

Alan Greenspan and Ben Bernanke? You think they didn't know everyone was playing with matches?

Come on.

Morals of the story --

1. Be highly skeptical of "leaders" -- financial, political or otherwise; and
2. Beware when someone tells you "this boom will last forever" -- a sure sign it's time to bail.

Meanwhile, concerning Lereah's "Why the Real Estate Boom Will Not Bust", Amazon.com advises --

Only 3 left in stock--order soon (more on the way).

Better hurry!

---

• Amazon: "Mastering the Trade, John F. Carter"
• Amazon: "Why the Real Estate Boom Will Not Bust" - And How You Can Profit from It"
  

-- Dan Damon

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