THE ESSENTIAL GUIDE TO THE MURPHY ADMINISTRATION JANUARY 2018

Transcription

1 THE ESSENTIAL GUIDE TO THE MURPHY ADMINISTRATION JANUARY 2018

2 TABLE OF CONTENTS I. Legislative Timeline II. First 100 Days: Five Key Promises to Watch III. The Murphy Administration IV. Campaign Promises Meet Political Reality

3 I. LEGISLATIVE TIMELINE THE LEGISLATIVE SESSION AT A GLANCE JANUARY legislative session begins State of the State address JANUARY 16 Inauguration day JANUARY MARCH Governor outlines legislative priorities Governor begins laying budget groundwork Governor re-staffs top levels of agencies FEBRUARY 27 Budget address FEBRUARY JUNE Senate confirms Cabinet nominees JUNE Budget due Expected culmination of legislative priorities JANUARY 8, 2019 Legislative session ends 2018 POLITICO Pro 1

4 II. MURPHY S FIRST 100 DAYS: 5 KEY PROMISES TO WATCH With Governor Phil Murphy now officially in office, campaign backers will be looking to the new governor to take steps towards realizing the promises he made on the trail. Here s a look at some of Governor Murphy s notable campaign pledges and where things stand as he begins his term: 1 Millionaires Tax A millionaires tax was among the largest policy proposals Murphy released during his campaign, intended to increase funding for local school districts among other big-ticket items. Murphy is counting on the high income tax to generate $700 million in annual revenue, and help him achieve his first priority of making this state a fairer state the state that it used to be. Despite recent changes to the federal tax code, Murphy has reiterated that he has no intention of retreating from his own tax reform agenda. We re not reconsidering [the millionaires tax], Murphy said. But we re trying to find other avenues on the federal side. One potential avenue could become a multi-state legal challenge to the tax overhaul; Murphy has said he s willing to join New York Gov. Andrew Cuomo and California Gov. Jerry Brown in suing the federal government if there s an opening to do so. However, Senate President Steve Sweeney, who appears to have a chilly relationship with Murphy, has threatened to hold up the governor s plans for a millionaires tax. Sweeney has said he plans to form his own committee to look at tax issues in New Jersey including whether the federal tax changes should stop him from pursing a high income tax POLITICO Pro 2

5 Noteworthy Without legislative support, Murphy will be unable to advance any revenue raisers and could be forced to curtail his ambitious agenda. He also wants to close some corporate tax loopholes and legalize marijuana, producing some $1.6 billion in revenue when combined with the millionaires tax. 2 Marijuana Legalization Throughout his campaign, Murphy championed legalization as both a social justice issue and a way to generate $300 million in tax revenue for the state. Still, a host of critical questions remain unanswered regarding how Murphy plans to approach the timing and regulatory structure of the burgeoning industry, and how exactly legalization factors into his tax plan. Perhaps most importantly, it is yet to be seen what impact a recent Justice Department policy shift will have on the deliberations that will unfold in the coming months. Murphy and other legislative supporters of legalization have said they will continue to push forward on the issue. Governor-elect Murphy believes strongly in New Jersey s right to chart its own course on legalizing marijuana, which will allow for law enforcement to focus their time and resources on persecuting violent crimes rather than non-violent drug offenders. Dan Bryan, a spokesman for Governor Murphy 3 Labor Relations Union officials are hoping the candidate they supported in a big way will come through for them. In a series of interviews with POLITICO, several of the state s top union leaders said the Murphy administration offers an opportunity to accomplish things that weren t possible under Gov. Chris Christie, such as raising the state s minimum wage to $15 or providing earned sick leave for New Jersey workers. (ctd.) 2018 POLITICO Pro 3

6 However, given the state s fiscal woes including a dozen credit downgrades under Christie and a drastically underfunded pension system other costlier initiatives might be out of reach, said Seton Hall University political scientist Matthew Hale. New Jersey is in trouble budget-wise, Hale said. There s not a lot of wiggle room in what [Murphy] can give. I think the biggest thing he is going to give is change in tone, that unions are not going to be the enemy anymore. Budget Watch Christie s yearlong opioid public advertising campaign Reach NJ will cost $42.6 million in taxpayer funds, though none of the money was directly allocated as part of annual budget negotiations with the state Legislature. The spending could place further budget pressures on Murphy, who is scheduled to deliver a proposed budget to lawmakers by the end of February. 4 Energy and Environment Murphy has pledged to build the state s energy master plan the guiding blueprint for New Jersey s energy policy within the first 100 days of his administration. A key part of the governor s energy agenda will be a plan to get New Jersey to 100 percent clean energy by 2050, primarily through investments in offshore wind. Additionally, Murphy has promised immediate action to restore New Jersey s place in the Regional Greenhouse Gas Initiative, a multi-state program designed to reduce greenhouse gas emissions. Murphy will also have to contend with a controversial nuclear subsidy bill, which did not come up for a vote in the lame-duck session despite being fast-tracked. Then-governor-elect Murphy intervened at the last minute to have the bill blocked to ensure it included provisions for clean energy investments POLITICO Pro 4

7 5 Higher Education Higher education leaders, citing the high cost of pursuing a post-secondary degree and the fact that more students in New Jersey choose out-of-state colleges than in any other state, will look to the new governor to address college affordability and invest in programs to keep students in-state. Some are also calling on the state to make regular capital investments so that colleges and universities can maintain or construct new buildings. On the campaign trail, Murphy outlined a proposal for tuition-free community colleges for all New Jersey residents at a projected annual cost of $200 million for the state. He cautioned, however, that the initiative would not happen immediately and that it would be incumbent on a growing economy. The article above is based on original reporting from POLITICO New Jersey Pro POLITICO Pro 5

8 III. THE MURPHY ADMINISTRATION: CABINET AND SENIOR LEADERSHIP CABINET NOMINEES AND SENIOR LEADERSHIP Below is a list of the Murphy s Cabinet selections to date. All nominations, except Lt. Governor Sheila Oliver s, are subject to confirmation by the state Senate. Robert Asaro-Angelo Department of Labor Shereef Elnahal Department of Health Gary Lanigan Department of Corrections Lt. Governor Sheila Oliver Department of Community Affairs U.S. Army Col. Jemal J. Beale ADJUTANT GENERAL Department of Military and Veterans Affairs Douglas Fisher SECRETARY Department of Agriculture Jared Maples DIRECTOR Office of Homeland Security Lamont Repollet Department of Education Christine Norbut Beyer Department of Children and Families Gurbir Grewal ATTORNEY GENERAL Department of Law & Public Safety Catherine McCabe Department of Environmental Protection Diane Gutierrez-Scaccetti Department of Transportation Marlene Caride Department of Banking and Insurance Carole Johnson Department of Human Services Elizabeth Muoio TREASURER Tahesha Way SECRETARY OF STATE Below is a list of the individuals who will serve on Murphy s senior leadership team, including various deputy chiefs of staff and directors who will work in the governor s office. Peter Cammarano CHIEF OF STAFF Justin Braz DEPUTY CHIEF OF STAFF FOR Mahen Gunaratna DIRECTOR OF COMMUNICATIONS Mary K. E. Maples DEPUTY CHIEF COUNSEL FOR LEGISLATIVE AFFAIRS AUTHORITIES Matt Platkin CHIEF COUNSEL Adam Alonso DEPUTY CHIEF OF STAFF FOR PUBLIC ENGAGEMENT AND INTERGOVERNMENTAL AFFAIRS Kathleen Frangione CHIEF POLICY ADVISER Parimal Garg DEPUTY CHIEF COUNSEL Lynn Haynes DEPUTY CHIEF OF STAFF FOR CABINET AFFAIRS & OPERATIONS Joe Kelley DEPUTY CHIEF OF STAFF FOR ECONOMIC GROWTH Scarlett Rajski DIRECTOR OF APPOINTMENTS Stephanie Lagos CHIEF OF STAFF TO FIRST LADY TAMMY SNYDER MURPHY Kate McDonnell DEPUTY CHIEF COUNSEL 2018 POLITICO Pro 6

9 IV. CAMPAIGN PROMISES MEET POLITICAL REALITY Many of Murphy s policy proposals run counter to recent federal directives, setting a challenging path ahead for the new governor as he seeks to deliver on campaign promises. In addition to tax reform, expect the Murphy administration to push back against the Trump administration on the following policy issues: Legal Marijuana In January, Attorney General Jeff Sessions rescinded an Obama-era policy limiting federal prosecutions of businesses and people who sell marijuana legally under state law, even though the drug remains illegal under federal law. In his directive, Sessions wrote that future prosecutions would be to the discretion of the U.S. attorney. While Murphy and other supporters of legalizing marijuana in New Jersey intend to forge ahead, Sessions directive will surely shape the upcoming debate. The policy change could make it harder for fledging marijuana businesses to secure loans and financing from banks, or have a chilling effect and depress sales if the legislation is passed. Perhaps the biggest outstanding question for the future of legalization in the state lies with the newly-named interim U.S. attorney for New Jersey and Christie ally, Craig Carpenito, who served on the former governor s Bridgegate defense team. It remains unclear if Carpenito plans to prosecute marijuana-related businesses in the state POLITICO Pro 7

10 The Big Chill Before Sessions announcement, the number of states legalizing recreational pot was snowballing. The change in federal policy could slow the movement, according to Morgan Scarboro, a policy analyst with the Tax Foundation s Center for State Tax Policy. I think consumers will be warier of buying in the legal markets, yes, she said. Sales might move back underground, which is a huge setback for states. Offshore Drilling The Trump administration unveiled a plan to open vast new stretches of federal waters to oil and gas drilling, erasing the policies put in place by previous administrations and setting up a conflict with state governments fearful about the risk of spills. Murphy immediately denounced the plan, and promised to fight what he called a ticking time bomb off our coast. He called the proposal a gift to the oil and gas industry that he was prepared to fight from the governor s office. Murphy said he plans to coordinate with Gov. Cuomo to come up with a regional plan to combat Trump s proposal. Flashback The last oil spill to affect the Jersey Shore occurred in 2004, when a tanker s hull was punctured by an anchor in the Delaware River, spilling more than 263,000 gallons of oil into East Coast waters. The cleanup cost $267 million, according to reports POLITICO Pro 8

11 Gateway Funding In December, the deputy administrator of the FTA wrote to New York officials saying what the agency had been hinting at for months: that it does not recognize an Obama-era funding arrangement for the proposed Gateway rail tunnel that would have had Washington pay half the cost of the $13 billion project. Still, Murphy has said that he remains hopeful New Jersey and New York can come to terms with the federal government. I personally believe that s one letter at one moment in time, Murphy said. I believe cooler heads will prevail at the end of the day. Murphy s Mark The collapse of the previous funding agreement could give the new governor a chance to put his mark on a project that Christie had championed after cancelling an earlier tunnel project. Murphy has often criticized that decision and has also questioned Christie s more recent proposal to pay for the tunnel by increasing fares on NJ Transit riders POLITICO Pro 9

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