NJ gov signs orders to toughen pay-to-play, keep casinos open, temporarily freeze mandates

NJ Gov. Christie signs 8 executive orders 1st day

TRENTON, N.J. — Gov. Chris Christie spent his first day in office putting pen to paper, signing eight executive orders affecting New Jersey municipalities, labor unions, casinos, and the way the public can track state spending.

The orders subject unions to the state’s pay-to-play ban, freeze unfunded mandates and other regulations and prevent casinos from shutting down indefinitely in the event a budget isn’t passed by July 1.

The orders also make state spending more transparent by requiring the Treasury Department to publish state spending and revenue projections online regularly and create a commission to review state business regulations and a council of economic advisers to the governor.

Christie, who was sworn in as New Jersey’s 55th governor Tuesday, made good on a campaign promise to close a loophole that exempted labor unions from rules on pay-to-play — the practice of rewarding political donors with lucrative government contracts — saying it was time to level the playing field.

New Jersey’s ban prohibits state agencies from awarding contracts worth more than $17,500 to companies that have donated more than $300 to a gubernatorial campaign or any state or county political party committee within 18 months. But unions — which donate heavily to Democrats — had been exempt.

“If the rules are good for everyone else, they are good for unions as well,” Christie said before sliding the pen he used to sign the order into his breast pocket. “I’m keeping that one for myself,” he added with a smile.

Bob Master, political director of Communications Workers of America District 1, the largest of several state worker unions, said the unions were looking into their legal options to challenge the order.

“We believe it well may be unconstitutional and that the governor has far exceeded his authority on this issue,” Master said, adding that he thought it was wrong to equate a collective bargaining agreement with a corporate contract.

“It’s not the same as an individual or corporation making a political contribution for financial gain,” Master said.

The orders also classified casino regulators as “essential,” allowing them to work indefinitely if there is a state government shutdown.

In 2006, Atlantic City casinos lost about $55 million when they were shut down for three days during the July 4 holiday period, because Gov. Jon Corzine and the Legislator could not agree on a state budget.

The casinos were forced to close because state casino inspectors were not able to be paid, and thus not able to work.

“We couldn’t afford that impact four years ago, and we certainly can’t take that kind of hit today,” said GOP Assemblyman Vince Polistina, whose district encompasses Atlantic City.

Corzine signed a bill in 2008 that permits the 11 gaming halls to temporarily police themselves without state inspectors if New Jersey fails to have a budget in place by July 1, as required by law.

However, the law would have only allowed casinos to stay open a week and required them to use private auditors — which concerned Casino Control Commission, Polistina said.

Other executive orders prohibit state agencies from recommending, proposing, publishing or submitting any regulation containing an unfunded mandate unless it has been signed off on by the governor or lieutenant governor — welcome news for towns and cities but cause for concern for others.

Jeff Tittel, the executive director of the New Jersey chapter of the Sierra Club, said he was particularly troubled by the order to suspend all nonessential regulations and rules and let state commissioners decide when waivers should be granted, especially concerning ones at the Department of Environmental Protection.

“It’s subject to political abuse,” he said. “First you freeze the rules, then you try to weaken them and get rid of them.”

Christie’s nominated DEP commissioner, Bob Martin, played a large role in crafting the order.

League of Municipalities Executive Director Bill Dressel praised Christie for “declaring war on unfunded mandates,” which Dressel said have come from nearly every state agency.

Dressel said the mandates and regulations in some instances have prevented towns from sharing services and staff, thereby saving money.

Overall, Christie’s first day was busy, but not particularly smooth. His first news conference started nearly 30 minutes late and copies of the executive orders he signed weren’t available for review for nearly four hours.

Christie joked about running into elementary schools children on his way into the Statehouse on Wednesday. They were taking a tour, he said, “And I told them I needed a tour of the Statehouse, too.”