TODAY’S MORNING UPDATE: Quote of the Day, What You Need To Know, Today’s News Clips



Quote of the Day:

Wall Street Journal: "We've reached a point now where there's an intimate link between our solvency and our national security," says Richard Haass, president of the Council on Foreign Relations and a senior national-security adviser in both the first and second Bush presidencies. "What's so discouraging is that our domestic politics don't seem to be up to the challenge. And the whole world is watching." - Richard Haass on the Obama administration’s handling of national security.


What You Need To Know:

·    Members of the public are invited to tell the Assembly Bipartisan Leadership Committee their ideas for fixing New Jersey at a public hearing in the Statehouse, from 3 p.m. to 7     p.m.

·    Illinois voters go to the polls for their Primary Election; Florida voters in the 19th Congressional District vote in the special election to fill the vacated seat from the retirement of       Democrat Robert Wexler.
 

Today’s News Clips:

State News:

·    Christie promises scrutiny of PVSC, PolitickerNJ
·    N.J. Gov. Chris Christie says he won't increase or add highway tolls, Associated Press

·    Christie has ally in longtime friend, Associated Press
·     Real estate giant in talks to save Xanadu, The Record
·    After two weeks, New Jersey residents reserving judgment on Chris Christie, poll finds, MyCentralJersey.com
·    Middletown man joins Christie's Cabinet, Asbury Park Press

National News:

·     FACT CHECK: Obama budget a leap of faith on growth, Associated Press
·     At Issue: Counting the Jobs Created, New York Times
·     Gerald F. Seib: Deficit Balloons Into National-Security Threat, Wall Street Journal
·     Big bang gives way to busted budget, Politico
·     Obama's struggle with health-care reform echoes Clintons' failure in 1994, Washington Post
·     Richard Cohen: Obama administration is tone-deaf to concerns about terrorism, Washington Post


State News:

Christie promises scrutiny of PVSC
By Matt Friedman
PolitickerNJ
Monday, February 1, 2010

A large but relatively obscure agency in North Jersey is set to become Gov. Christopher Christie’s poster child for all that is wrong with New Jersey’s independent authorities.

The Christie administration plans to delve into the payroll and outside consultant contracts of the Passaic Valley Sewerage Commission (PVSC) – a 108-year-old agency with a $164 million budget.

Christie already got the ball rolling on his criticism of the agency, singling out Executive Director Bryan Christiansen’s $313,000 salary as over-the-top.  And his transition team’s report called for a “thorough review” of its overhead expenditures and hiring of outside consultants – including attorneys and engineers.

The authority, which employees about 600 people -- 86 of whom earn six figure salaries – has a payroll of roughly $48 million.  It treats water for 1.3 million North Jersey residents.

Read Full Article <http://www.politickernj.com/matt-friedman/36497/christie-promises-scrutiny-pvsc>

N.J. Gov. Chris Christie says he won't increase or add highway tolls
Associated Press
Monday, February 1, 2010

TRENTON — Gov. Chris Christie today said he won’t put tolls on roads that do not have them now because the state's residents already are overtaxed.

He also ruled out increasing highway tolls or the gas tax to help solve New Jersey’s budget problems.

"I don't favor tolls on roads where we don't currently have them, and I do not favor and will not sign an increase in the gas tax. When people are struggling -- that is not the time to raise taxes and fees,'' Christie told reporters during a Statehouse press conference today.

Christie’s transition team on transportation suggested he consider adding tolls on some roads -- such as Routes 195, 295, 287 and 80 -- to pay for upkeep. It also recommended putting a gas tax increase to a public vote.

The governor faces money woes at every turn. He estimates the state budget deficit for next year at $11 billion, on top of a $1 billion shortfall in the current budget.

Read Full Article <http://www.nj.com/news/index.ssf/2010/02/nj_gov_chris_christie_says_he.html>

Christie has ally in longtime friend
By Angela Delli Santi
Associated Press
Monday, February 1, 2010

TRENTON — New Jersey has a new Republican governor, who assumed office on a mandate of curbing spending, slashing debt and making the Garden State more affordable. Among those commissioned to help make this vision a reality, none will wield more influence in the Legislature than Sen. Joe Kyrillos.

Kyrillos, R-Middletown, is a 22-year veteran of the Senate and Assembly who knows his way around Trenton as well as any politician. He chaired Gov. Chris Christie's successful campaign for governor, considered an upset in Democratic-leaning New Jersey. He's a previous chair of the Republican State Committee, has been a key adviser on the new governor's transition team and spoke at his inauguration.

A trusted confidante of Christie's, Kyrillos is perhaps the only lawmaker who will find the governor's door always open to him.

"I'm sure we'll continue to have a very special relationship going forward while I'm governor on both a personal and professional level," Christie said. "He's certainly someone whose advice I'll often seek out and often listen to as well because I think Joe's a pretty smart guy."

Christie, who never held statewide elected office before unseating former Gov. Jon S. Corzine in November, will rely on Kyrillos to help him establish relationships and strike deals with the Democratic-controlled Legislature, which just began a new session. Without legislative cooperation, Christie will be stymied from moving his agenda forward

Read Full Article <http://www.courierpostonline.com/article/20100201/NEWS01/1310352/1006>

Real estate giant in talks to save Xanadu
By John Brennan
The Record
Monday, February 1, 2010

The Meadowlands Xanadu project, after being stalled for more than a year, may finally have found the last $500 million in construction funds it needs to be completed.

Billionaire Stephen Ross — whose Related Companies real estate firm is a major player in Manhattan development projects — has been in negotiations with Xanadu developer Colony Capital, as well as New Jersey state officials, about becoming a joint venture partner in the project, according to three sources familiar with the negotiations. The sources said Monday that a formal announcement could come this week.

If the Ross negotiations come to fruition, it’s expected that Xanadu — perhaps with a new name and a new look — could open before the end of 2010. The mix of entertainment and retail components is not expected to change dramatically under Related. A spokeswoman for the company was not immediately available for comment Monday.

Xanadu’s construction funding dried up early in 2009, when missed payments by a subsidiary of bankrupt Lehman Brothers triggered a withdrawal from the project by other lenders. New Jersey Sports and Exposition Authority officials have estimated that Colony needs $500 million to complete the 2 million-square-foot interior. The money would allow the developers to build out leased spaces for as many as 200 retail tenants — about half of the shopping and entertainment complex’s footprint.

Read Full Article <http://www.northjersey.com/news/020110_Real_estate_giant_in_talks_to_save_Xanadu.html>

After two weeks, New Jersey residents reserving judgment on Chris Christie, poll finds
MyCentralJersey.com
Tuesday, February 2, 2010

CENTRAL JERSEY — Two weeks into his job, and early reviews are encouraging for Gov. Chris Christie, according to the first Monmouth University/Gannett New Jersey Poll conducted during the new administration.

Among 803 residents who participated in the poll he received a positive rating from 33 percent of the voters and a negative from 15 percent, with 52 percent having no opinion on his performance since his Jan. 19 inauguration.

"I hope he does better than (former Gov. Jon) Corzine in every respect, but he's going to need help from the Legislature to get taxes down. I don't think anybody can do it by himself," said Mary Ellen Beres, an office manager from East Brunswick.

"I voted for him. I wanted somebody to take his hands out of our pocket," said Beverly Smith, a retired bookkeeper from South Plainfield.

New Jerseyans continue to see property taxes as a defining issue by which they will judge the success of a Christie administration, but remain skeptical that taxes will actually come down.

Read Full Article <http://www.mycentraljersey.com/article/20100202/NEWS/2010350/-1/newsfront/After-two-weeks-New-Jersey-residents-reserving-judgment-on-Chris-Christie-poll-finds>

Middletown man joins Christie's Cabinet
Asbury Park Press
Monday, February 1, 2010

TRENTON — Raymond Martinez of Middletown, a former official at the White House and U.S. State Department, has been named nominated to be chairman and chief administrator of the state Motor Vehicle Commission.

Gov. Chris Christie Monday also nominated Janet Rosenzweig of Yardley, Pa., to be commissioner of the Department of Children and Families.

Martinez was most recently deputy chief of protocol and diplomatic affairs for the State Department and White House, according to a news release from the governor's office. He managed a staff of 70 and an annual budget of $8 million, it said.

In addition, he served as counsel for diplomatic immunity issues related to the U.S. and international law, the release said.

Read Full Article <http://www.app.com/article/20100201/NEWS/2010336/Middletown-man-joins-Christie-s-Cabinet>

National News:

FACT CHECK: Obama budget a leap of faith on growth
By Calvin Woodward and Martin Crutsinger
Associated Press
Tuesday, February 2, 2010

WASHINGTON – President Barack Obama's proposed budget relies on a commission without teeth to help his administration wrestle the deficit out of the danger zone. It forecasts stronger economic growth than most economists expect and calls on Congress to cut programs that lawmakers cherish.

All budgets from the White House are leaps of faith of some sort. This one is no exception.

The economic forecasts used in setting spending priorities are in line with independent expectations for now. After that, though, the administration's projections appear ever more fanciful.

A look at some budget assumptions and how they compare with the facts and political realities:

Read Full Article <http://ph.news.yahoo.com/ap/20100202/twl-us-budget-fact-check-ef375f8.html>

At Issue: Counting the Jobs Created
By Michael Cooper
New York Times
Monday, February 1, 2010

As the Obama administration begins talking to Congress about a new jobs bill, it is still having trouble saying with precision how many jobs have been spurred so far by last year’s effort, the $787 billion stimulus package that was designed to create or save 3.5 million jobs over two years.

Over the weekend, in fact, the administration released the latest figures showing the impact of the stimulus package on jobs, announcing that nearly 600,000 jobs had been financed directly in the fourth quarter of 2009. But it changed the definition of those jobs, making it hard for Congress or the public to keep score and learn how the stimulus is doing.

From February to September, the administration had said, more than 640,000 jobs were saved or created. But in the final quarter of 2009, the administration no longer asked recipients whether all of those jobs were actually created or saved by the stimulus money or whether some of those jobs might have existed without the stimulus money.

Instead, it now simply counts all existing jobs paid for with stimulus money as saved jobs, whether or not they would have been lost without the money.

The new, more expansive definition will make it more difficult to isolate the effects of the stimulus law, which is officially called the American Recovery and Reinvestment Act, but should make it easier for states and employers to calculate jobs. But the new definition also means that the new tally of 599,108 jobs reported in the fourth quarter cannot be compared with the earlier figures from 2009.

Read Full Article <http://www.nytimes.com/2010/02/02/us/politics/02jobs.html>

Gerald F. Seib: Deficit Balloons Into National-Security Threat
By Gerald F. Seib
Wall Street Journal
Tuesday, February 2, 2010

The federal budget deficit has long since graduated from nuisance to headache to pressing national concern. Now, however, it has become so large and persistent that it is time to start thinking of it as something else entirely: a national-security threat.

The budget plan released Monday by the Obama administration illustrates why this escalation is warranted. The numbers are mind-numbing: a $1.6 trillion deficit this year, $1.3 trillion next year, $8.5 trillion for the next 10 years combined—and that assumes Congress enacts President Barack Obama's proposals to start bringing it down, and that the proposals work.

These numbers are often discussed as an economic and domestic problem. But it's time to start thinking of the ramifications for America's ability to continue playing its traditional global role.

The U.S. government this year will borrow one of every three dollars it spends, with many of those funds coming from foreign countries. That weakens America's standing and its freedom to act; strengthens China and other world powers including cash-rich oil producers; puts long-term defense spending at risk; undermines the power of the American system as a model for developing countries; and reduces the aura of power that has been a great intangible asset for presidents for more than a century.

"We've reached a point now where there's an intimate link between our solvency and our national security," says Richard Haass, president of the Council on Foreign Relations and a senior national-security adviser in both the first and second Bush presidencies. "What's so discouraging is that our domestic politics don't seem to be up to the challenge. And the whole world is watching."

Read Full Article <http://online.wsj.com/article/SB10001424052748703422904575039173633482894.html?mod=WSJ-hpp-LEADNewsCollection>

Big bang gives way to busted budget
By David Rogers
Politico
Monday, February 1, 2010

President Barack Obama’s new $3.83 trillion budget is a chickens-come-home-to-roost moment for Democrats who skipped past the deficit to tackle health care last year and now risk paying a heavy price in November.

The great White House political gamble was to act quickly — before the deficits hit home — and institute major changes which proponents say will serve the long-term fiscal health of the country. Instead, a year of wrangling and refusal to consider more incremental steps have brought Obama and Congress to this juncture, where waves of red ink threaten to swamp their boat and drown reform altogether.

“It’s very important to understand, we won’t be able to bring down this deficit overnight given that the recovery is still taking hold and families across the country still need help,” Obama told reporters Monday. But with $5.08 trillion in deficits over the next five years, his spending plan seems also a cry for help in the face of what he sees as intransigent Republican opposition.

Not until 2014 to 2015 — midway through what Obama hopes will be his second term — is there any chance of approaching a sustainable budget. Even then, the president admits he will need the help of a bipartisan fiscal commission willing to tackle long-range issues like Social Security reform.

Read Full Article <http://dyn.politico.com/printstory.cfm?uuid=8BE114E3-18FE-70B2-A8F9B33B2D97A426>

Obama's struggle with health-care reform echoes Clintons' failure in 1994
By Abigail Trafford
Washington Post
Tuesday, February 2, 2010

Obamacare in trouble? I've seen this story before. It may not end in the way the Clinton effort imploded in 1994. But a look back helps answer this question: How does health-care reform go from being an apple pie issue with voters to a lightning rod for discontent?

Here are a few reasons, gleaned from the past, that may help explain Obamacare's troubles.

Time bomb

The Obama and Clinton initiatives had very different strategies. Hillary Clinton and her team of wonks labored in secrecy to design a perfect bill; early on, they dissed members of Congress. They also dissed the major players in health: insurers, hospital and physician associations, and drug manufacturers.

This time, the Obama administration did the reverse. The White House turned to Congress to design the bill. Meanwhile, the president courted the health-care industry and won over organizations that had opposed the Clinton plan. Chip Kahn, president of the Federation of American Hospitals, pledged his support: "From my standpoint, we're all on the train together," he told Newsweek. "And I expect to ride it all the way into a signing ceremony."

Read Full Article <http://www.washingtonpost.com/wp-dyn/content/article/2010/02/01/AR2010020103200.html>

Richard Cohen: Obama administration is tone-deaf to concerns about terrorism
By Richard Cohen
Washington Post
Tuesday, February 2, 2010

There is almost nothing the Obama administration does regarding terrorism that makes me feel safer. Whether it is guaranteeing captured terrorists that they will not be waterboarded, reciting terrorists their rights, or the legally meandering and confusing rule that some terrorists will be tried in military tribunals and some in civilian courts, what is missing is a firm recognition that what comes first is not the message sent to America's critics but the message sent to Americans themselves. When, oh when, will this administration wake up?

Bit by bit, circumstances are forcing President Obama and his aides to come to grips with reality. The original plan to try Khalid Sheik Mohammed, the so-called Sept. 11 mastermind, in New York City has apparently been aborted. It finally occurred to the Justice Department that cordoning off much of Lower Manhattan and placing a security perimeter around the financial district not only would cost something like $200 million a year but also would destroy the economy of the area. A trial there would give KSM, as he is called, a second shot at devastating downtown New York.

It is amazing that no one thought this through. Published reports say that the Justice Department informed Mayor Michael Bloomberg of its plan just about the time it was announced. This alacrity was clearly the product of some excitement down at Justice -- yet another chance to show the world that George W. Bush was gone and with him the odious attempts to treat terrorists as if they were, well, terrorists. A civilian trial! Right in the heart of Manhattan! Obama ought to ask his friend Attorney General Eric Holder what in the world he was thinking -- just as we might ask Obama why he has such faith in Holder's judgment.

Read Full Article <http://www.washingtonpost.com/wp-dyn/content/article/2010/02/01/AR2010020102854.html>