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♪♪ >>> HELLO, AND WELCOME TO "REPORTERS ROUNDTABLE."

I'M JOANNA FILLING IN FOR DAVID CRUZ TODAY.

OUR STATE BUDGET PROJECTIONS FOR THE NEXT FISCAL YEAR, AN EMBARRASSMENT OF RICHES?

WE'LL DIVE INTO THAT IN A MINUTE BUT FIRST I'D LIKE TO WELCOME OUR ESTEEMED PANEL OF JOURNALISTS.

WE HAVE COLLEEN O'DAY, SENIOR WRITER AND PROJECTS EDITOR FOR NJ SPOTLIGHT NEWS, STACIE SHERMAN FROM BLOOMBERG AND DUSTIN STATE HOUSE REPORTER FOR THE RECORD AND "USA TODAY."

THIS WEEK THE DEPARTMENT OF THE TREASURY ANNOUNCED A SURPLUS OF $4.5 BILLION BRINGING THE STATE'S TOTAL FISCAL YEAR FOR 2023 BUDGET PROJECTIONS TO $51.4 BILLION.

SO, THE QUESTION NOW, HOW SHOULD THE STATE DIVVY UP THIS MASSIVE PILE OF CASH?

JOINING ME NOW TO STAIR HIS PERSPECTIVE IS DEMOCRATIC ASSEMBLYMAN RAJ, WHO SERVES ON THE ASSEMBLY BUDGETS AND APPROPRIATIONS COMMITTEES.

ASSEMBLYMAN, YOUR REPUBLICAN COLLEAGUES ARE CALLING FOR THE STATE TO GIVE THE MONEY BACK.

DO YOU BELIEVE SOME VERSION OF A REBATE IS THE RIGHT RESPONSE TO THE SURPLUS RIGHT NOW?

>> WELL, YOU KNOW, THE SPEAKER HAS CALLED FOR MAKING USE OF THE MAKING USE OF THE ADDITIONAL REVENUE TO BE USED TO DELIVER HISTORIC PROPERTY TAX RELIEF TO THE TAXPAYERS.

NOW IN TERMS OF GIVING IT BACK, WE'VE ACTUALLY SPENT THE LAST FOUR OR FIVE FISCAL YEARS IN SOME WAY BUILDING ON SUCCESSES TO MAKE NEW JERSEY MORE AFFORDABLE, BUILDING ON THE MIDDLE CLASS TAX CUT THAT WAS TIED TO THE MILLIONAIRE'S TAX CUT A COUPLE YEARS AGO.

THIS YEAR'S BUDGET PROPOSAL CREATES THE ANCHOR RELIEF PROPERTY TAX PROGRAM WHICH WOULD FULLY FUND THE EXPANSION OF THE HOMESTEAD REBATES BUT THERE ARE THINGS THAT WE CAN LOOK AT DOING, I DON'T WANT TO GET AHEAD OF THE COMMITTEE'S WORK, BUT THAT COULD INCLUDE ACCELERATING FULLY DELIVERING THAT PROPERTY TAX REBATE.

I THINK AT THE END OF THE DAY, TO ANSWER YOUR QUESTION, JOANNA, I THINK IT MAKES SENSE TO PUT THE MONEY DIRECTLY BACK IN THE POCKETS OF NEW JERSEYANS WHILE THERE'S ALSO WISDOM IN SHORING UP OUR SURPLUS JUST BECAUSE THE POSSIBILITY LOOMS THAT WE'RE GOING TO ENTER AN ECONOMIC DOWNTURN AND WE'RE PROBABLY GOING TO SEE A RIGHT-SIZING OF REVENUE COLLECTIONS IN THE COMING YEARS.

SO, I THINK WE HAVE TO BALANCE THOSE PRIORITIES, BUT IT PROBABLY MAKES SENSE TO GET THE MONEY BACK TO NEW JERSEY'S TAXPAYERS.

>> YEAH, AND I WANT TO -- WE'RE GOING TO GET INTO THE ISSUE OF INFLATION AND WHAT'S GOING TO HAPPEN WITH INTEREST RATES AND WHETHER OR NOT WE'RE GOING TO SEE ANY KIND OF CONTINUED FUNDING SURPLUS LIKE THIS, BUT YOU DID CALL FOR REBATES TO GO DIRECTLY TO DRIVERS AND TO NJ TRANSIT RIDERS, RIGHT?

WHAT WOULD YOU LIKE THAT TO LOOK LIKE?

>> RIGHT.

AND THAT'S -- THAT PROPOSAL DOES NOT INVOLVE USING THE ADDITIONAL REVENUES THAT WERE ABOVE AND BEYOND WHAT THE TREASURER PROJECTED WHEN THE GOVERNOR'S BUDGET WAS ORIGINALLY INTRODUCED.

WE WERE LOOKING AT TAKING INFRASTRUCTURE MONEY AND THE FEDERAL MONEY THAT WE HAVE SEEN AS A CONSEQUENCE OF THE PANDEMIC AND ARPA TO SEE IF WE COULD GET SOME RELIEF DIRECTLY BACK IN THE POCKETS OF NEW JERSEY MOTORISTS AND NEW JERSEY COMMUTERS USING PUBLIC TRANSIT.

THE BUDGET HEARINGS REVEALED THAT NEW JERSEY TRANSIT, DESPITE THEIR BEST EFFORTS, HAS NOT QUITE ADAPTED TO THE INCREASED USE AND THE DEMAND, THE RIDERSHIP, THAT THEY'RE SEEING -- WE'RE SEEING MISSED BUS STOPS IN URBAN AREAS.

WE'RE SEEING MUCH TO BE DESIRED IN TERMS OF IMPROVING BUS SERVICE, PARTICULARLY WITH THE PRIVATE CARRIERS, AND I THINK NEW JERSEY TRANSIT COMMUTERS DESERVE RELIEF.

WE ALSO WANT TO GET MORE PEOPLE OUT OF THEIR CARS, USING TRANSIT, AND A FARE HOLIDAY OVER THE NEXT FEW MONTHS OF THE SUMMER COUPLED WITH REBATES FOR GAS DIRECTLY IN THE POCKETS OF MOTORISTS, MAYBE $400, WHICH WOULD BE A WATERED DOWN VERSION OF MY INITIAL PROPOSAL, MIGHT ONLY COST US A HALF A BILLION DOLLARS OF FEDERAL MONEY.

I THINK WOULD BE WELCOME RELIEF, GIVEN WHAT WE'RE SEEING WITH GAS PRICES.

NOW, GENERALLY SPEAKING, THE GAS TAX IS A USER FEE, OUT-OF-STATE MOTORISTS, TRUCK DRIVERS, ET CETERA, ARE PAYING TO USE OUR ROADWAYS, OUR TRANSPORTATION INFRASTRUCTURE, SO I DON'T WANT TO ELIMINATE OR HAVE A HOLIDAY ON THE GAS TAX.

WE'RE PROPOSING USING THE FEDERAL MONEY TO OFFER SHORT-TERM INTERIM RELIEF DIRECTLY TO NEW JERSEY MOTORISTS WITHOUT SLOWING DOWN OUR GAS TAX REVENUE COLLECTIONS, WITHOUT AFFECTING THE TRANSPORTATION TRUST FUND BECAUSE WE DON'T WANT TO DIVERT MONEY FROM THAT FUND, WHICH IS NEEDED FOR OUR INFRASTRUCTURE FOR OUR ROADWAYS.

>> AND A LOT OF PEOPLE COME THROUGH NEW JERSEY, SO WE WOULD LOSE THAT REVENUE.

>> EXACTLY.

EXACTLY.

>> NEW JERSEY HAS NOT HISTORICALLY BEEN GREAT AT BUILDING UP ITS KIND OF RAINY DAY FUND, RIGHT?

A SURPLUS FOR WHEN THERE'S A RECESSION.

WHAT DO YOU THINK SHOULD BE A PERCENTAGE OF MONEY THAT'S SET ASIDE?

BECAUSE AS WE KNOW, INFLATION IS SOARING, AND INTEREST RATES ARE LIKELY GOING TO INCREASE PRETTY SIGNIFICANT PROBABLY OVER THE NEXT FEW YEARS.

SO, HOW MUCH SHOULD WE BE SAVING AS A STATE?

>> YOU KNOW, THAT'S GOING TO BE SOMETHING I THINK THE BUDGET COMMITTEE, BOTH HOUSES OF LEGISLATURE AND THE GOVERNOR ARE GOING TO BE WORKING THROUGH IN THE COMING WEEKS SO I DON'T WANT TO GET AHEAD OF THE WORK OF THE COMMITTEE OR TALK OVER BOTH BUDGET CHAIRS IN TERMS OF A SPECIFIC NUMBER.

THAT WOULD BE SUBJECT TO, I THINK, DELIBERATIONS AND NEGOTIATIONS, BUT I WILL SAY THIS.

YOU'RE ABSOLUTELY RIGHT, I THINK THE CONCERNS WITH INFLATION AND THE POTENTIAL ECONOMIC DOWNTURN THAT LOOMS AHEAD, WE'RE DEALING WITH THE SUPPLY CHAIN ISSUES WE'RE SEEING THROUGHOUT THE WORLD.

WE'RE DEALING WITH THE HISTORIC LEVEL OF STIMULUS THAT WAS PUMPED INTO THE ECONOMY, HELPED THE CONSUMER STAY STRONG.

WE'VE SEEN SO MUCH IN THE WAY OF MAKING THE WORKERS STRONGER, UNEMPLOYMENT'S LOW, WAGE GROWTH WE'VE SEEN, IT'S A TIGHT LABOR MARKET.

BY THE SAME TOKEN, ALL THOSE GAINS HAVE BEEN WIPED OUT BY RISING PRICES, RIGHT?

SO -- AND WE HAVEN'T REALLY, IN A MEANINGFUL WAY, OTHER THAN THROUGH REBATES, LOWERED PROPERTY TAXES IN A PERMANENT SENSE.

IT WOULD BE BETTER WHEN WE COULD GET TO THE POINT THROUGH CONSOLIDATION THROUGH SHARED SERVICES AND THROUGH MEANINGFUL SCHOOL FUNDING, MAYBE FROM THE STATE, TO OFFSET LOCAL SPEND IF WE COULD BE AT THE POINT WHERE ACTUALLY LOWERING PROPERTY TAXES, NOT JUST BY GIVING REBATES, WHICH MIGHT BE SHORT-LIVED IF WE'RE NOT FULLY FUNDING THEM IN THE FUTURE.

>> ONE OF THE KEY DRIVERS OF PROPERTY TAXES INCREASING ARE SCHOOL COSTS.

OUR MANY DISTRICTS WILL TELL YOU THEY'VE BEEN SORELY UNDERFUNDED FOR DECADES.

HOW MUCH SHOULD THE STATE BE PRIORITIZING INVESTING IN SCHOOL DISTRICTS SO THAT WE CAN AVOID SEEING TAX INCREASES FOR MUNICIPALITIES?

>> SO, I THINK THAT THAT'S GOING TO BE NUMBER ONE, NUMBER TWO, AND NUMBER THREE TOWARDS DELIVERING MEANINGFUL PROPERTY TAX RELIEF AND TRULY DELIVERING PROPERTY TAX REFORM.

WHEN WE GET THERE, IT'S GOING TO HAVE TO BE ABOUT OFFSETTING THE BURDEN THAT ALL OF OUR MUNICIPALITIES, OUR 565 MUNICIPALITIES AND ALL OF OUR SCHOOL DISTRICTS BEAR RIGHT NOW.

NOW, WHAT WE'VE DONE OVER THE PAST FOUR OR FIVE FISCAL YEARS, THIS LEGISLATURE AND THE GOVERNOR, HAVE FUNDED SCHOOLS TO A HISTORIC EXTENT.

WE HAVE MADE RECORD PENSION AND DEBT DEFEASMENT PAYMENTS THAT ARE GOING TO HAVE AN APPRECIABLE EFFECT ON FOLKS' WALLETS AND IT'S GOING TO HELP OFFSET STATE, COUNTY, MUNICIPAL EXPENSES AND TAXES WHILE SAFEGUARDING THE RETIREMENTS OF MILLIONS OF NEW JERSEYANS.

WE HAVE EXPANDED THE EARNED INCOME TAX CREDIT, SO WE COULD PUT MORE MONEY DIRECTLY BACK IN THE POCKETS OF WORKING -- MORE WORKING NEW JERSEYANS, BUT IT'S GOING TO BE ABOUT OFFSETTING, I THINK, MUNICIPAL FUNDING FOR OUR SCHOOLS, THAT'S GOING TO BE CRITICAL TO ACTUALLY LOWERING PROPERTY TAXES.

>> SO, ASSEMBLYMAN, WE HAVE A PANEL OF REPORTERS, AS YOU KNOW.

WE'VE GOT A COUPLE QUESTIONS THAT THEY WOULD LIKE TO ASK YOU.

I'M GOING TO ASK DUSTIN TO JUMP IN WITH A QUESTION ABOUT SCHOOL FUNDING.

>> I THINK YOU ALLUDED TO THIS BEFORE, ASSEMBLYMAN, BUT THE SCHOOL'S DEVELOPMENT AUTHORITY ESTIMATES THAT TO REPLACE OR RENOVATE AGING SCHOOLS AND OVERCROWDED SCHOOLS IS GOING TO COST $6 BILLION.

BESIDES MAYBE TAPPING FEDERAL AID FOR THAT, HOW DO YOU THINK THE STATE SHOULD APPROACH FUNDING THAT MASSIVE PROBLEM SHOULD IT COME FROM SOME OF THE SURPLUS FUNDS THAT WE HAVE OR SHOULD IT GO OUT -- SHOULD THE STATE GO OUT TO BOND?

AND HOW DOES THAT RANK ON THE BUDGET COMMITTEE IN TERMS OF PRIORITIES THIS YEAR?

>> SURE.

THANKS FOR THAT QUESTION, DUSTIN.

IT'S AN IMPORTANT ONE.

THE COMMITTEES ARE STILL DOING THEIR WORK.

WE JUST CONCLUDED PUBLIC HEARINGS THIS WEEK.

SO I DON'T HAVE MORE COLOR ON THE INTERNAL DISCUSSIONS AT THIS TIME.

BUT IN TERMS OF USING SURPLUS REVENUES FOR THAT, I DON'T KNOW THAT THAT WOULD MAKE AS MUCH SENSE BECAUSE WE HAVE A POT OF FEDERAL DOLLARS FOR INFRASTRUCTURE AND ARPA MONEY THAT WE COULD TAP FOR THESE TYPES OF ONE-SHOT CAPITAL EXPENDITURES, SO I DON'T KNOW THAT YOU WOULD WANT TO USE SURPLUS REVENUES IN THE BUDGET FOR A PURPOSE LIKE THAT WHEN YOU COULD DELIVER PROPERTY TAX RELIEF, PUT IT BACK DIRECTLY IN THE POCKETS OF NEW JERSEYANS OR WHERE YOU COULD SHORE UP THE SURPLUS CONSIDERING WHAT MIGHT LIE AHEAD IN TERMS OF ECONOMIC DOWNTURN OR RIGHT-SIZING OF REVENUE COLLECTIONS.

I THINK IT WOULD MAKE MORE SENSE TO USE THE UNCOMMITTED SUM OF FEDERAL MONEY, NOT EXCLUSIVELY FOR THAT PURPOSE, BUT AT LEAST A PORTION OF IT FOR OUR SCHOOL DEVELOPMENT NEEDS AND THEN AS WE'VE DONE IN THE PAST, IF WE NEED TO BOND FOR IT, WE COULD EXAMINE THAT.

WE'RE STILL WORKING THROUGH THAT.

>> ASSEMBLYMAN, I KNOW COLLEEN O'DAY HAS A QUESTION FOR YOU.

GO AHEAD, COLLEEN.

>> THANKS, JOANNA.

ASSEMBLYMAN, YOU KNOW, WHAT'S TYPICALLY HAPPENS AT THE END OF THE YEAR IS THERE IS THIS MAD RUSH RIGHT BEFORE THE BUDGET DEADLINE TO ADD MONEY.

LAST YEAR, SIX DAYS BEFORE THE GOVERNOR SIGNED THE BUDGET, THE LEGISLATURE ADDED $1.6 BILLION IN SPENDING, HUNDREDS OF MILLIONS OF THAT WENT TO SPECIFIC PROJECTS FOR TOWNS OR MUNICIPALITIES OR DISTRICTS, WHAT'S TYPICALLY KNOWN AS CHRISTMAS TREE ITEMS IN NEW JERSEY.

THERE'S VERY LITTLE CHANCE FOR PUBLIC SCRUTINY OR PUBLIC COMMENT ON THAT.

IS THAT WHAT'S GOING TO HAPPEN THIS YEAR, OR DO YOU EXPECT TO TRY TO ADD SOME MORE TIME FOR PUBLIC INPUT?

>> SO, THAT'S AN -- THAT'S A LITTLE ABOVE MY PAY GRADE IN TERMS OF PROCESS.

I DO THINK -- I MEAN, THE BUDGET RESOLUTIONS ARE PUBLIC, BUT A LOT OF TIMES, BECAUSE OF THE CONSTITUTIONAL DEADLINE, MIDNIGHT, JUNE 30th OR JULY 1, THERE ARE -- OFTENTIMES, THE DOCUMENT WHICH ARE WORKING DOCUMENTS WHICH ARE WORKING DRAFTS ARE NOT AVAILABLE FOR A SIGNIFICANT PERIOD OF REVIEW, BUT THERE IS A -- THERE IS TIME FOR PUBLIC SCRUTINY.

A LOT OF TIMES, THE LAWMAKERS GET IT WHEN YOU GET IT, WHEN THE DRAFTS COME DOWN, AND WE NEED THE TIME TO REVIEW THAT TOO BEFORE VOTING.

I'M ALWAYS SUPPORTIVE OF MORE TIME FOR SCRUTINY, PARTICULARLY OF PET PROJECTS AND CHRISTMAS TREE ITEMS, ALTHOUGH I WOULD SAY THAT WE HAVE BEEN PRETTY RESPONSIBLE WITH THE AMOUNT OF MONEY THAT'S BEEN ALLOCATED FOR CHRISTMAS TREE ITEMS, WHICH, BY THE WAY, WENT AWAY FOR A LONG TIME.

AND YOU KNOW, WE EXPANDED THE ITC.

WE EXPANDED THE GARDEN STATE GUARANTEE PROGRAM FOR TWO YEARS OF FREE COLLEGE FOR SO MANY STUDENTS IN NEW JERSEY ALONGSIDE OUR COMMUNITY COLLEGES.

WE PROVIDED DIRECT CASH RELIEF IN THE FORM OF TAX REBATES AND REFUNDABLE TAX CREDITS TO MILLIONS OF MIDDLE CLASS WORKING FAMILIES.

THE ITEMS YOU'RE TALKING ABOUT FOR LOCAL PROJECTS WERE RELATIVELY SMALL PORTION OF THE BUDGET.

I WOULDN'T EXPECT THAT TO BE MUCH DIFFERENT THIS YEAR.

BUT ALWAYS SUPPORT MORE TIME FOR SCRUTINY BY THE GOOD FOLKS OF THE FOURTH ESTATE, SO YOU CAN HOLD US ACCOUNTABLE FOR THE WORK WE'RE DOING AND ALSO FOR THE MEMBERS OF THE BUDGET COMMITTEE AND FOR THE MEMBERS OF THE LEGISLATURE, SO WE HAVE TIME TO DIGEST IT ALL.

IT'S A BIG -- IT'S A LENGTHY DOCUMENT, AND IT'S NOT ALWAYS EASY TO HAVE A SHORT AMOUNT OF -- HAVE A SHORT WINDOW TO DIGEST IT BECAUSE THAT DOESN'T LEAVE A LOT OF TIME FOR QUESTIONS TO BE ASKED BEFORE WE VOTE.

>> AND UNFORTUNATELY, ASSEMBLYMAN, WE ARE OUT OF TIME FOR QUESTIONS TO ASK YOU.

THAT'S ALL THE TIME WE HAVE, BUT I WANT TO THANK YOU SO MUCH FOR JOINING US FOR YOUR THOUGHTFUL RESPONSES, ASSEMBLYMAN RAJ MUKHERJI, THANKS TO OUR PANEL FOR THOSE GREAT QUESTIONS.

THANKS FOR JOINING US, ASSEMBLYMAN.

>> THANKS, JOANNA, THANKS, EVERYBODY.

>> THE AGE-OLD ADAGE, MORE MONEY, MORE PROBLEMS.

I'M GOING TO ASK OUR PANELISTS, DO WE HAVE MORE PROBLEMS IN NEW JERSEY NOW THAT THERE IS A SURPLUS, THAT THERE ARE AMERICAN RESCUE PLAN FUNDS SITTING THAT NEED TO BE SPENT?

WHAT DO YOU EXPECT FROM THE BUDGET PROCESS AS IT PLAYS OUT THIS YEAR?

COLLEEN, I'M GOING TO START WITH YOU.

>> GIVEN WHAT THE ASSEMBLYMAN, YOU KNOW, HOW HE JUST ANSWERED THE QUESTION, I WOULD EXPECT THAT THERE'S PROBABLY GOING TO BE A SIGNIFICANT AMOUNT MORE MONEY THAT THE LEGISLATURE DOES ADD TO THE BUDGET, KIND OF AT THE LAST MINUTE WITHOUT MUCH PUBLIC SCRUTINY.

I HOPE I'M WRONG.

I HOPE THEY DO THIS EARLY IN JUNE SO THAT PEOPLE CAN COME OUT AND TALK ABOUT IT, SO THERE CAN BE MORE HEARINGS, BUT I DO EXPECT THERE WILL BE MILLIONS MORE GIVEN TO THOSE PET PROJECTS BUT I THINK WE'LL SEE AN ENHANCED REBATE OF SOME SORT, SOME MONEY COMING BACK TO THE PUBLIC, JUST BECAUSE THERE'S SO MUCH MONEY THERE, MY GOODNESS.

IT'S HARD TO MAKE THE ARGUMENT NOT TO GIVE MONEY BACK TO PEOPLE WHEN THEY'RE FACING INFLATIONARY PRESSURES, HIGH GAS PRICES.

BUT IT WOULD MAKE SENSE TO PUT MORE ASIDE BECAUSE I THINK AS YOU POINTED OUT IN YOUR QUESTIONS EARLIER, WE DON'T KNOW WHEN THIS -- THE TAP IS GOING TO CLOSE AND WHEN THE MONEY IS GOING TO STOP FLOWING IN, BUT THAT IS GOING TO HAPPEN.

>> SO, IT'S NOT JUST LACK OF PUBLIC OVERSIGHT THAT WE COULD POSSIBLY SEE, RIGHT?

THE GOVERNOR SUBMITTED A BUDGET PROPOSAL THAT TOOK OUT LANGUAGE THAT THE LEGISLATURE HAD INTENTIONALLY PUT IN, SAYING THAT THE JOINT BUDGET OVERSIGHT COMMITTEE WOULD HAVE, REALLY, SAY IN HOW THE GOVERNOR SPENDS THE FEDERAL FUNDS THAT THE STATE IS SITTING ON, SO DUSTIN, QUESTION TO YOU.

DO YOU ENVISION ANOTHER BATTLE BETWEEN A DEMOCRATIC-CONTROLLED LEGISLATURE AND THE GOVERNOR?

>> IT'S POSSIBLE.

BUT I THINK THAT THEY'LL COME TO AN AGREEMENT.

THERE HAVEN'T BEEN TOO MANY SQUABBLES OVER THE LAST SEVERAL BUDGETS, AND THIS IS A PRIORITY FOR THE SENATE PRESIDENT, THE NEW SENATE PRESIDENT, NICK SCUTARI, TO GET THAT LANGUAGE BACK SO LEGISLATURE HAS OVERSIGHT.

I JUST CAN'T FORESEE THE MURPHY ADMINISTRATION GOING TO THE MAT FOR SOMETHING THAT WAS IN PLACE, YOU KNOW, NOT TOO LONG AGO, SO FOR HIM TO STRIP IT OUT, I DON'T KNOW WHAT HIS THINKING WAS THERE, BUT I REALLY JUST CAN'T SEE THIS WORTH BEING A FIGHT THAT THE MURPHY ADMINISTRATION WANTS TO GET INTO AT A TIME WHERE THEY'VE GOT SO MANY OTHER BIG PROBLEMS TO FIGURE OUT AND THEY HAVE BILLIONS OF DOLLARS AT THEIR DISPOSAL OF THEIR OWN MONEY THAT THEY ARE GOING TO FIGHT OVER.

>> SO, YOU THINK THAT LANGUAGE GOES BACK IN?

>> I WOULD BET ON THAT, YEAH.

>> STACIE, WE'VE SEEN TIME AND TIME AGAIN CRITICISM THAT REBATE PROGRAMS JUST DON'T WORK, THEY DON'T PROPERLY FUND STATE BUDGETS, FEDERAL BUDGETS, FOR THAT MATTER.

WHERE DO YOU BELIEVE THE STATE'S GOING TO END UP, AND WHAT DO YOU BELIEVE IS THE RIGHT MOVE FOR HOW TO SPEND THIS SURPLUS?

>> I THINK THERE'S NO DOUBT THAT REBATES HELP, AND I THINK IT WOULD BE -- I THINK YOU'RE DEFINITELY GOING TO GET MORE MONEY FOR THE REBATE.

THERE IS THE QUESTION OF WHETHER IT HELPS LONG-TERM BECAUSE LONG-TERM, AS WE ALL KNOW, IF YOU PAY TAXES IN NEW JERSEY, MY PROPERTY TAXES KEEP GOING UP AND UP.

SO, IT DOESN'T FIX THE LONG-TERM STRUCTURAL PROBLEM.

IT HELPS IN THE SHORT-TERM, BUT WHAT PEOPLE HAVE BEEN ARGUING FOR AS LONG AS I'VE BEEN COVERING NEW JERSEY IS THAT YOU'RE NOT FIXING THE BASE PROBLEM, WHICH IS THAT PROPERTY TAXES KEEP GOING UP, AND LITTLE IS DONE TO STOP THAT.

>> RIGHT NOW, WE ARE JUST A FEW WEEKS AWAY FROM PRIMARY DAY ON JUNE 7th HERE IN NEW JERSEY.

COLLEEN, THERE ARE A FEW KEY COMPETITIVE RACES TO WATCH.

DISTRICT 5 IN PARTICULAR WITH JOSH GOTTHEIMER, DISTRICT 4 WITH REPUBLICAN CHRIS SMITH.

JUST TALK US THROUGH WHAT'S HAPPENING IN BOTH OF THOSE DISTRICTS.

>> IN BOTH OF THOSE DISTRICTS, YOU HAVE REPUBLICAN PRIMARIES THAT ARE, YOU KNOW, PRETTY INTERESTING FOR NEW JERSEY.

WE USUALLY DON'T HAVE, YOU KNOW, VERY COMPETITIVE PRIMARIES, AND WE COULD BE WRONG IN TERMS OF THINKING HOW COMPETITIVE THESE ACTUALLY ARE.

CHRIS SMITH HAS BEEN IN FOR MORE THAN 40 YEARS.

HE'S GOT A CHALLENGE FROM THE RIGHT AND CHRIS SMITH IS A REPUBLICAN, FAIRLY CONSERVATIVE, BUT BY TODAY'S STANDARDS, HE'S CONSIDERED MORE OF A MODERATE.

MIKE CRISPY IS A CONSERVATIVE PODCASTER WHO WAS REALLY KIND OF ON THE FAR RIGHT.

THERE'S A THIRD CHALLENGER THERE, STEVE GRAY, ALSO ON THE FAR RIGHT.

BUT CHRIS SMITH HAS THE ENDORSEMENT OF BOTH THE MONMOUTH AND OCEAN COUNTY REPUBLICANS, SO HE COULD SAIL THROUGH.

I MEAN, WE REALLY DON'T KNOW.

UP IN THE FIFTH, YOU'VE GOT THE BERGEN COUNTY ENDORSED COUNTY, NICK, GOING AGAINST FRANK.

HE'D RUN TWO YEARS AGO AND LOST TO GOTTHEIMER.

HE GOT SUPPORT FROM THE OTHER TWO COUNTIES, SUSSEX AND PASAIC, BUT DIGRIGORIA WOULD SEEM TO HAVE AN EDGE THERE.

PALATTA WAS ENDORSED BY TRUMP TWO YEARS AGO SO THAT'S AN INTERESTING RACE TOO.

>> FUND-RAISING IS A BIG PART OF GOTTHEIMER'S STRATEGY.

HE'S SITTING ON A BOAT LOAD OF CASH.

HOW IN DANGER IS HE?

>> YEAH, HE'S GOT $13 MILLION.

I MEAN, THAT'S GOING TO BUY YOU A LOT OF ADS.

HE COULD BE IN DANGER.

WE'VE GOT THE THIRD DISTRICT, THE 11th DISTRICT, CERTAINLY THE 7th DISTRICT WHERE DEMOCRATS COULD BE IN DANGER BECAUSE REMEMBER THAT THE PARTY IN POWER IN THE WHITE HOUSE USUALLY LOSES SEATS.

IN 2018, WHEN DONALD TRUMP WAS IN, THAT'S WHEN THE THIRD AND THE 7th AND THE 11th FLIPPED TO THE DEMOCRATS.

GOTTHEIMER WON HIS SEAT TWO YEARS EARLIER WHEN TRUMP WAS ON THE BALLOT, AND TRUMP WON THAT DISTRICT, SO HE COULD BE IN A LITTLE BIT OF A SAFER POSITION, BUT GIVEN THE ECONOMY, GIVEN THAT IT'S A MIDTERM ELECTION, GAS PRICES ARE HIGH, YOU KNOW, ALL OF THOSE SEATS COULD BE IN DANGER.

>> STACIE, QUESTION TO YOU.

WE SAW THE GOVERNOR DECLARE A STATE OF EMERGENCY THIS WEEK BECAUSE OF THE BABY FORMULA SHORTAGE.

DO YOU BELIEVE THAT THERE IS A PROPER RESPONSE NOW TO WHAT'S HAPPENING, AND DID THE STATE, DID FEDERAL LEADERS STEP IN IN TIME?

>> I HOPE SO, FOR ALL THOSE MOMS OUT THERE.

I THINK THEY TOOK A LOT OF STEPS THIS WEEK.

WE HEARD IT FROM PRESIDENT BIDEN.

HE INVOKED THE DEFENSE PRODUCTION ACT.

GOVERNOR MURPHY IS DEALING WITH PRICE GOUGING.

SO, I THINK THEY'RE DOING WHAT THEY CAN.

THE PROBLEM IS THAT THERE'S THIS PLANT IN MICHIGAN THAT WAS CLOSED, AND THEY'RE WORKING TO REOPEN IT, BUT IT'S NOT LIKE YOU COULD FLIP A SWITCH AND ALL OF A SUDDEN YOU HAVE BABY FORMULA AGAIN.

THIS IS A MULTISTEP PROCESS.

SO, I THINK THERE'S GOING TO BE A WHILE BEFORE YOU HAVE -- YOU DON'T HAVE A SHORTAGE.

IT'S JUST HOW BIG A DEAL IT IS FOR MOMS, WHETHER THEY CAN FIGURE OUT ALTERNATIVES.

WE HAVE TO SEE.

>> CERTAINLY, IT POINTS TO THESE GREAT MONOPOLIES THAT WE HAVE IN OUR COUNTRY THAT CAN LEAD TO THESE SHUTDOWNS, BUT THIS COULD HAPPEN AGAIN IN SOME OTHER INDUSTRY, PERHAPS TO ANOTHER VULNERABLE POPULATION, BECAUSE WHAT WE'RE SEEING IS THAT THERE'S NOT ENOUGH DIVERSIFICATION, RIGHT, OF OUR BIG COMPANIES, OUR BIG PRODUCERS OF PRODUCTS.

>> WE HAVE BEEN SEEING THIS OVER AND OVER AGAIN, AND IT'S LIKE, YOU WOULD THINK WE WOULD LEARN OUR LESSONS.

WE SAW IT DURING COVID WHEN SANITIZER OR OTHER PRODUCTS, WE WERE RUNNING SHORT OR MASKS OR EVEN HOSPITAL GOWNS.

IT SEEMED TO KEEP HAPPENING OVER AND OVER AGAIN, AND WE'RE NOT LEARNING BECAUSE WE SHOULD HAVE HAD PRODUCTION.

WE SHOULD HAVE HAD THESE PRODUCTION ISSUES SOLVED BY NOW, AND IT HAPPENS OVER AND OVER AGAIN.

SO, YOU KNOW, WE SOLVE IT SHORT-TERM WITH THE DEFENSE PRODUCTION ACT OR WE START TO BUILD PLANTS, BUT THEN THE PROBLEM RESURFACES OVER AND OVER.

>> DUSTIN, I WANT TO GO TO YOU AND WHAT THE STATE IS THINKING ABOUT RIGHT NOW IN TERMS OF LICENSING OUR POLICE OFFICERS.

WHAT IS THE GOVERNOR PROPOSING, AND DO YOU THINK IT'S GOING TO FLY HERE?

>> YEAH, HE'S PROPOSING THAT WE ACTUALLY DO LICENSE OUR POLICE OFFICERS.

MY COLLEAGUES AT THE ASBURY PARK PRESS A COUPLE YEARS AGO DID A SERIES ABOUT LOTS OF DIFFERENT PROBLEMS IN LAW ENFORCEMENT, BUT ONE OF THEM BEING THAT POLICE OFFICERS WHO ARE DISCIPLINED OR FIRED FOR MISCONDUCT, THEY CAN SLIP RIGHT BACK INTO OTHER AGENCIES, AND THAT'S A FAILURE ON THE STATE LEVEL, BECAUSE IT DOESN'T HAVE THAT LICENSING MECHANISM.

SO THE GOVERNOR'S PROPOSING TO FIX THAT AND NEW JERSEY, IF IT DOES DO THAT, WOULD BE ONE OF THE LAST REMAINING STATES TO HAVE A MEASURE LIKE THAT IN PLACE TO TRY TO KEEP SO-CALLED BAD COPS FROM GETTING JOBS AT OTHER DEPARTMENTS ELSEWHERE.

WHETHER THAT'S GOING TO HAPPEN OR NOT, IT'S HARD TO SAY.

I MEAN, ALL THESE THINGS TEND TO GET GUMMED UP WHEN THEY'RE BIG AND THEY'RE COMPLEX AND THAT'S CERTAINLY SOMETHING THAT THIS FALLS UNDER.

BUT WHEN THE GOVERNOR UNVEILED THIS, HE DID HAVE SPONSORS, SO THAT'S A GOOD SIGN.

I GUESS IT REALLY COMES DOWN TO WHETHER THE SPEAKER AND THE SENATE PRESIDENT ARE ON BOARD WITH IT, AND I'M NOT CLEAR OR THEY HAVEN'T MADE CLEAR EXACTLY WHERE THEY STAND ON THAT RIGHT NOW.

BUT AGAIN, NEW JERSEY IS ONE OF THE FEW STATES THAT DOESN'T DO THIS, SO THAT, YOU KNOW, THAT WOULD BE A QUESTION.

WHY CAN'T WE GET THIS DONE?

>> YEAH.

IT'S A GOOD QUESTION.

WE'RE GOING TO HAVE TO LEAVE IT RIGHT THERE.

THANK YOU SO MUCH TO ALL OF YOU WHO JOINED US TODAY, ASSEMBLYMAN RAJ MUKHERJI, THANK YOU STACIE, COLLEEN, DUSTIN.

THANK YOU, OUR VIEWERS.

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