>> Announcer: MAJOR FUNDING FOR "REPORTERS ROUNDTABLE" WITH DAVID CRUZ IS PROVIDED BY NEW JERSEY REALTORS, THE VOICE FOR REAL ESTATE IN NEW JERSEY.

MORE INFORMATION IS ONLINE AT NJREALTOR.COM.

RWJBARNABAS HEALTH.

LET'S BE HEALTHY TOGETHER.

NJM INSURANCE GROUP, SERVING THE INSURANCE NEEDS OF NEW JERSEY RESIDENTS AND BUSINESSES FOR MORE THAN 100 YEARS.

ROWEN UNIVERSITY, EDUCATING NEW JERSEY LEADERS, PARTNERING WITH NEW JERSEY BUSINESSES, TRANSFORMING NEW JERSEY'S FUTURE.

PROMOTIONAL SUPPORT IS PROVIDED BY "NEW JERSEY BUSINESS MAGAZINE," THE MAGAZINE OF THE NEW JERSEY BUSINESS AND INDUSTRY ASSOCIATION, REPORTING TO EXECUTIVE AND LEGISLATIVE LEADERS IN ALL 21 COUNTIES OF THE GARDEN STATE SINCE 1954.

AND BY POLITICO'S "NEW JERSEY PLAYBOOK," A TOPICAL NEWSLETTER ON GARDEN STATE POLITICS, ONLINE AT POLITICO.COM >>> JUST WHEN YOU THOUGHT IT WAS GOING TO BE SMOOTH SAILING, THE STATE BUDGET PROCESS MIGHT YET GET A LITTLE BUMPY.

HI, EVERYONE, IT'S "REPORTERS ROUNDTABLE."

I'M DAVID CRUZ.

JOINED EACH WEEK BY A TRIO OF SHARP-WITTED AND SHORT-TEMPERED REPORTERS FROM AROUND THE STATE, INCLUDING THIS WEEK, KATHERINE LAIND, MIKE KELLY, COLUMNIST FOR THE RECORD AND NORTHJERSEY.COM AND THE POLITICS REPORTER FOR NJ ADVANCED MEDIA.

WE'LL GET INTO IT WITH THE PANEL IN A FEW MINUTES BUT WE START TODAY WITH A NEARLY $50 BILLION STATE BUDGET AND BILLIONS OF EXTRA CASH FLOATING AROUND.

SOUNDS LIKE A RECIPE FOR A RUNAWAY SPENDING OR A ONCE-IN-A-GENERATION INVESTMENT OPPORTUNITY.

THE MAN WHO'S GOING TO CLOSE THE GAP BETWEEN THOSE TWO BY THE END OF JUNE IS THE SENATE BUDGET COMMITTEE CHAIRMAN, SENATOR PAUL SARLOW AND HE JOINS US NOW.

THANKS FOR COMING ON WITH US.

>> GREAT TO BE WITH ALL OF YOU.

>> SO, IT WOULD SEEM LIKE A GOOD PROBLEM TO HAVE SO MUCH MONEY AROUND BUT IN TRENTON, IT LOOKS LIKE IT'S CREATING TENSIONS.

LET'S START WITH THE EXTRA $3 BILLION IN EXTRA REVENUE OLS SAYS THE STATE HAS, WHY WERE THE PROJECTIONS FROM THE FRONT OFFICE SO OFF, AND IS THAT NORMAL?

>> SO, LET ME BEGIN AT THE $48.9 BILLION BUDGET, NOT A $50 BILLION BUDGET, SO LET ME JUST -- >> ALMOST $50 BILLION.

>> ALMOST $50 BILLION.

BUT LISTEN, WE HAD GREAT TESTIMONY THE OTHER DAY FROM THE OFFICE OF LEGISLATIVE SERVICES AND THE STATE TREASURER, AND CLEARLY THERE IS A LITTLE OVER $3 BILLION DIFFERENCE IN THE REVENUE FORECAST FOR THE CLOSE OF THE CURRENT FISCAL YEAR, WHICH ENDS ON JUNE 30th.

AND THE PROPOSED FISCAL YEAR.

BUT IT WAS MADE CLEAR DURING THAT TIME THAT A LOT OF THE PROJECTIONS FROM OFFICE OF LEGISLATIVE SERVICES ARE BASED OF THE STATE BORDERS, WHICH COULD HAVE AN IMPACT.

WE HAVE THE FEDS, WHO HAVE MADE IT CLEAR, THE FEDERAL RESERVE, MADE IT CLEAR THEY ARE GOING TO BE INCREASING RATES PRETTY DRASTICALLY TO GET INFLATION UNDER CONTROL.

WE HAVE THE UNCERTAINTY, WHAT'S HAPPENING ON THE EASTERN SIDE OF EUROPE AND WITH THE WAR.

WE HAVE OUR COUNTRY TALKING ABOUT ENERGY INDEPENDENCE.

WE HAVE THE PENT-UP DEMAND OF THE PANDEMIC COMING TO AN END.

THERE'S A LOT OF UNCERTAINTY OUT THERE RIGHT NOW, SO A LOT OF THOSE PROJECTIONS, THAT OFFICE OF LEGISLATIVE SERVICES INCLUDED, WERE VERY ROSY PROJECTIONS.

WE WILL GET THAT NUMBER, WHATEVER THAT NUMBER IS, WE'LL HAVE THAT NUMBER CLOSED AFTER THE APRIL INCOME TAX COLLECTIONS.

>> WE SHOULD SAY REVENUES ARE CERTIFIED BY THE GOVERNOR'S OFFICE, RIGHT?

THIS HAS BEEN A POINT OF FRICTION IN THE PAST WITH LAWMAKERS ACCUSING GOVERNORS OF NOT BEING STRAIGHT WITH THE ESTIMATES.

YOU JUST THINK THAT THESE WILL BALANCE OUT ULTIMATELY?

>> THESE ARE GOING TO BALANCE OUT.

THE MURPHY ADMINISTRATION, TO THEIR CREDIT, HAS BEEN ALWAYS VERY CLOSE WITH THE OFFICE OF LEGISLATIVE SERVICES.

UNLIKE PREVIOUS YEARS, WE HAD MORE PROBLEMS WITH THE PREVIOUS GOVERNOR, DEALING WITH REVENUE PROJECTIONS.

I DON'T THINK WE SHOULD GET CAUGHT UP ON THAT.

THE BOTTOM LINE IS, WE DO HAVE UNPRECEDENTED AMOUNT OF FEDERAL DOLLARS IN OUR BUDGET.

WE HAVE REVENUES OF STRONGER THAN EVER.

THERE'S A LOT TO BE PROUD OF IN THIS BUDGET, BUT WE NEED TO BE SURE THAT WE LOOK AT THIS AS A TWO-YEAR BUDGETING PLAN.

YOU'RE GOING TO HEAR ME CONTINUE TO SAY THAT, AND WE ALSO ARE GOING TO CONTINUE TO HEAR ME TALK ABOUT SUSTAINABILITY.

THE INVESTMENTS THAT WE MAKE HERE WITH ANY OF THE FEDERAL DOLLARS OR THE ADDITIONAL REVENUES MUST BE ABLE TO BE SUSTAINED.

THEY CAN'T BE NEW PROGRAMS THAT WE CAN'T SUSTAIN TWO TO THREE YEARS FROM NOW IF WE DO HIT THAT RECESSION.

>> SO, NOW WE'RE HEARING ABOUT THIS QUESTION OF WHO CONTROLS THAT FEDERAL MONEY THAT'S COME IN.

BILLIONS OF DOLLARS.

CAN YOU EXPLAIN WHAT THE ARRANGEMENT WAS LAST YEAR BETWEEN THE LEGISLATURE AND THE FRONT OFFICE AND HOW YOU THINK IT NEEDS TO BE DIFFERENT THIS YEAR?

>> WELL, THE LEGISLATURE'S TAKEN THE APPROACH IT DOESN'T NEED TO BE DIFFERENT.

LANGUAGE IN LAST YEAR'S BUDGET, INCLUDING JOINT BUDGET OVERSIGHT COMMITTEE, WHICH I CHAIR, IT'S A SMALL COMMITTEE THAT WHEN THE GOVERNOR'S OFFICE -- THE ADMINISTRATION, I SHOULD SAY, WANTS TO SPEND ANY OF THE FEDERAL DOLLARS AND WHAT WE'RE REALLY DEALING WITH NOW IS THE AMERICAN RESCUE PLAN DOLLARS.

THERE'S ABOUT $3.2 BILLION LEFT.

ALL OF THE C.A.R.E.

DOLLARS WERE USED VERY APPROPRIATELY AND WISELY AND ARE PROPERLY BEING AUDITED.

SO THIS IS THE BALANCE.

THEY NEED TO COME TO THE JOINT BUDGET OVERSIGHT COMMITTEE AND ASK FOR APPROVAL.

IN THE BUDGET THIS YEAR, THE PROPOSED BUDGET, GOVERNORS AND BUDGET MESSAGE, THEY STRUCK OUT ONE LINE THAT SAID THE JOINT BUDGET OVERSIGHT COMMITTEE WOULD BE ABLE -- WOULD HAVE TO PROVIDE APPROVAL.

NONNEGOTIABLE ON THE LEGISLATURE SIDE.

NONNEGOTIABLE.

THAT LANGUAGE WILL BE IN THE BUDGET DOCUMENT THAT GOES BACK TO THE GOVERNOR FOR SIGNATURE.

>> I KNOW WHAT NONNEGOTIABLE MEANS, BUT WHAT DOES NONNEGOTIABLE MEAN IN THE CONTEXT OF BUDGET TALKS?

NONNEGOTIABLE ENOUGH TO, WHAT, NOT PASS THIS BUDGET?

>> DAVID, I DON'T -- LISTEN.

WE'RE GOING TO HAVE A BUDGET ON TIME HERE.

SAVE THE DRAMA.

PLAN YOUR VACATION IN MIDDLE OF JUNE, DAVID.

THERE'S NOT GOING TO BE A LOT OF DRAMA HERE.

WE'RE GOING TO GET THROUGH THIS, BUT THAT WAS ALREADY NEGOTIATED.

WHAT I MEAN NONNEGOTIABLE, IT WAS ALREADY NEGOTIATED.

GOVERNOR'S OFFICE ALREADY AGREED THAT THE BUDGET OVERSIGHT COMMITTEE WOULD PLAY AN IMPORTANT ROLE.

THE LEGISLATURE SHOULD PLAY AN IMPORTANT ROLE IN MAKING SURE THE FEDERAL DOLLARS ARE WISELY SPENT.

AGAIN, YOU'RE GOING TO HEAR ME TALK A LOT ABOUT TWO-YEAR BUDGET PROCESS, MAKING SURE WE CAN SUSTAIN IT, STRATEGIC INVESTMENTS.

THESE ARE NEED TO BE INFRASTRUCTURE, BRICK AND MORTAR, HOW DO WE HELP GROW THE ECONOMY, SCHOOL CONSTRUCTION, YOU KNOW, INFRASTRUCTURE AND INVESTMENTS SUCH AS THAT.

>> ALL RIGHT, LET ME GET A PANEL QUESTION HERE.

KATHERINE, YOU HAD A QUESTION.

>> YES, I DID.

AFFORDABILITY HAS BEEN A COMMON REFRAIN AMONGST DEMOCRATS, AND REPUBLICANS.

IS THERE ANYTHING SPECIFIC THAT YOU WOULD LIKE TO SEE ADDED INTO THE SPENDING PLAN THAT IS SENT BACK TO THE GOVERNOR THAT GOES BEYOND HIS INITIAL PROPOSAL?

>> RIGHT, SO, HIS INITIAL PROPOSAL, WHICH WE'RE TAKING A VERY CLOSE LOOK AT, IS THE ANCHOR PLAN, WHICH REPLACES THE OLD HOMESTEAD REBATE PROGRAM.

IT IS CLEARLY SOMETHING THAT TOUCHES MANY NEW JERSEYANS AND PUTS MONEY BACK DIRECTLY INTO THEIR POCKET.

LISTEN, YOU TOUCHED UPON A KEYWORD.

AFFORDABILITY ISSUES.

I THINK WE LEARNED FROM THE LAST ELECTION, POCKETBOOK ISSUES NEVER CHANGE.

AND NEW JERSEY, WHEN IT COMES TO POCKETBOOK ISSUES, IS A VERY, VERY MODERATE STATE WHEN IT COMES TO POCKETBOOK ISSUES.

>> THERE'S BEEN SOME TALK, SENATOR, ABOUT REINSTATING THE COST OF LIVING BUDGETS TO PUBLIC EMPLOYEE PENSIONS.

THEY'VE BEEN FROZEN SINCE 2011.

SOME LAWMAKERS WANT TO RESTORE THEM.

WHAT ABOUT YOU?

>> LISTEN, WE HAVE HAD MANY GOOD PUBLIC SERVANTS WHO HAVE SERVED OUR STATE IN MANY DIFFERENT DEPARTMENTS OVER THE YEARS.

AND SOME LIVE IN NEW JERSEY, SOME DO NOT LIVE IN NEW JERSEY.

ARE THEY ENTITLED TO A CULL?

YES, BUT WE HAVE TO MAKE SURE WE KEEP THAT IN LINE.

IT IS PROBABLY A $2 BILLION HIT TO OUR PENSION SYSTEM THAT WE WOULD NEED TO COME UP WITH.

RIGHT NOW, WE, FOR THE FIRST TIME EVER IN THE HISTORY OF STATE OF NEW JERSEY, WE HAVE HIT THE 100% ACTUAL -- ACTUARY REQUIREMENT, HISTORIC THIS YEAR, AND WE DID IT LAST YEAR AS WELL.

SO, TWO YEARS IN A ROW, WE'RE -- WE'VE TURNED THE CORNER ON SHORING UP OUR PENSION SYSTEM, SO ANY ADDITIONAL HITS ON TO IT NEEDS TO BE TAKEN WITH A VERY CLOSER LOOK.

>> LET ME GET ANOTHER QUICK QUESTION IN HERE.

TALKING ABOUT THESE CHRISTMAS TREE ITEMS, WAS IT YOU THE OTHER DAY WHO SAID THAT YOU'RE OKAY WITH THEM SO LONG AS PEOPLE SAY WHERE THEY'RE GOING AND WHO'S INVOLVED?

>> I DIDN'T MAKE THAT STATEMENT.

YOU MUST HAVE SOMEBODY ELSE -- >> WHAT'S YOUR SENSE OF THE CHRISTMAS TREE ITEMS THIS SEASON?

>> FIRST OF ALL, LET'S -- WE ALL SHOULD FORGET THE WORD, CHRISTMAS TREE ITEMS, RIGHT?

BUT AGAIN, I GO BACK TO A STRATEGIC INVESTMENT IN CONSTRUCTING A SCHOOL OR TURNING A -- AN OPEN SPACE THAT HAS BEEN UNDEVELOPED AND POLLUTED, THAT FLOODS, FLOOD MITIGATION INTO AN OPEN SPACE PEDESTRIAN FOR A CITY OR MUNICIPALITY.

INVESTING IN A PARKING GARAGE.

ARE THEY CHRISTMAS TREE ITEMS?

IT'S SEXY FOR YOU GUYS TO CALL THEM CHRISTMAS TREE ITEMS.

BUT THAT IS A STRATEGIC INVESTMENT, AND THAT IS WHERE WE COULD USE SOME OF THOSE FEDERAL DOLLARS.

>> ALL RIGHT, PAUL SARLO, GOOD TO SEE YOU, MAN.

THANKS FOR COMING ON WITH US.

>> THANK YOU, GUYS, KEEP UP THE GOOD WORK OUT THERE.

GOD BLESS.

>> ALL RIGHT, KATHERINE, MIKE, BRENT, GOOD TO SEE YOU ALL.

SO, THERE'S THE BUDGET CHAIRMAN, KATHERINE, YOU'RE WATCHING THIS PROCESS.

IS IT GOING TO BE SMOOTH SAILING, OR MIGHT THERE BE ROUGH WATERS AHEAD?

>> MY -- BE VERY SMOOTH SAILING.

I MEAN, I THINK THE LEGISLATURE AND THE GOVERNOR'S OFFICE HAD AN OPPORTUNITY FOR A REAL RESET.

OBVIOUSLY, FORMER PRESIDENT STEVE SWEENEY AND THE GOVERNOR DIDN'T HAVE THE BEST RELATIONSHIP, AND IT SEEMS AS THOUGH SCUTARI AND MURPHY, YOU KNOW, DO HAVE A MUCH BETTER RELATIONSHIP, WHICH IS TRUE, BUT I THINK THE FACT THAT THE GOVERNOR TOOK OUT THIS LANGUAGE WAS A HUGE MISSTEP AND IT REALLY ANGERED A LOT OF LAWMAKERS, AND SO IT DEFINITELY DOES NOT PUT THEM ON THE RIGHT FOOTING.

SO, WE'LL SEE.

>> I MEAN, IT ANGERED SOME LAWMAKERS, BUT DID IT ANGER THEM ENOUGH TO REVOLT AGAINST THIS BUDGET?

IT DOESN'T SEEM SO.

WHAT DO YOU THINK?

>> NO, I DON'T THINK IT'S -- I DON'T THINK IT'S, YOU KNOW -- THEY DEFINITELY SUPPORT THE BUDGET, I THINK.

THERE'S NOTHING REALLY THAT I'M HEARING THAT IS, YOU KNOW, MATERIALLY GOING TO CHANGE FROM DEMOCRATS.

I JUST THINK THAT IN TERMS OF A RELATIONSHIP, IT COULD JUST MAKE IT MORE DIFFICULT AND MAYBE THEY COULD LEAD TO BIGGER, YOU KNOW, THINGS THAT MAYBE THEY WOULDN'T HAVE INITIALLY.

>> ALL RIGHT.

BRENT, WHEN PEOPLE START USING WORDS LIKE "NONNEGOTIABLE," THAT TENDS TO HAVE AN IMPACT ON, LIKE, NEGOTIATIONS.

IS THERE TROUBLE LOOMING OVER THE CONTROL OF THESE FEDERAL FUNDS, OR IS THAT JUST -- THAT'S NOT GOING TO HAPPEN?

>> I CAN'T IMAGINE THIS WOULD BE THE THING THAT WOULD CAUSE A SHUTDOWN OR SOME SORT OF MAJOR DRAMA OVER THE STATE BUDGET, BECAUSE IF IT'S JULY 1st AND I HAVE TO CANCEL MY VACATION TO THE NETHERLANDS, I DON'T THINK I'M GOING TO BE VERY HAPPY.

BUT YEAH, I DON'T FORESEE THIS BEING THE KIND OF THING THAT TORPEDOS THE STATE BUDGET.

THERE'S TOO MUCH MONEY AND TOO MUCH REVENUE TO DEAL WITH THIS TIME, AND IT SEEMS LIKE TO HAVE MAJOR PROBLEMS OVER THIS WOULD BE SHORTSIGHTED.

BUT IT IS SOMETHING THEY HAVE TO WORK OUT, AND I'M NOT QUITE SURE HOW IT DOES, YOU KNOW, THIS IS ONLY THE BEGINNING OF THESE ARGUMENTS.

>> SO, DID YOU SAY YOU WERE GOING TO VACATION IN -- >> IT'S WHERE THE FIRST KWIK CHECK WAS FOUNDED.

>> THAT'S A JERSEY VACATION RIGHT THERE.

MIKE, SO MUCH MONEY FLOATING AROUND THE STATE CAPITAL.

SHOULD IT MAKE TAXPAYERS NERVOUS?

>> YEAH.

IT'S KIND OF LIKE THAT OLD NOVEL, YOU KNOW, ROBERT LOUIS STEPHENSON'S NOVEL, "TREASURE ISLAND."

YOU'VE GOT ALL THE PIRATES TOGETHER, AND THEY ALL WANT A PIECE OF PIE, SO TO SPEAK.

YEAH, THIS IS A PRESCRIPTION, I THINK, FOR ALL KINDS OF FIGHTING.

I WOULD -- I REALLY LIKE WHAT SARLO SAID ABOUT INFRASTRUCTURE.

I DON'T THINK I NEED TO TELL YOU THAT OUR STATE NEEDS MASSIVE INFRASTRUCTURE UPGRADES, AND I WOULD LIKE TO SEE THE LEADERSHIP IN THE STATE, SARLO INCLUDED, AND JUST COME UP WITH A SERIES OF INFRASTRUCTURE PLANS THAT GO BEYOND WHAT WE'RE TALKING ABOUT RIGHT NOW.

WE REALLY NEED TO REBUILD THE BRIDGES AND THE ROADS AND THE RAILS IN NEW JERSEY.

>> ELECTION SEASON HAS BEGUN.

PRIMARIES ARE SET IN BOTH PARTIES.

NOT A LOT OF SURPRISES, BUT THE REPUBLICANS WE'VE BEEN TALKING TO ARE FEELING PRETTY CONFIDENT.

LET'S HEAR FROM GOP STRATEGIST CHRIS RUSSELL WHO WAS ON "CHAT BOX" WITH US THIS WEEK.

>> LISTEN, I BELIEVE -- I TRULY BELIEVE THIS, THAT I THINK ANDY KIM, MIKEY SHAIRL AND JOSH GOTTHEIMER ARE ALL VULNERABLE.

IN A HUGE WAVE, SOMEONE LIKE FRANK POLLONE IS IN THE MIX.

THE DEMOCRATS DID A WONDERFUL GERRYMANDER OF THE CONGRESSIONAL MAP A FEW MONTHS BACK AND MADE THESE DISTRICTS LESS COMPETITIVE BUT NOT IN A YEAR LIKE THIS BECAUSE THE KEY IS, ANDY KIM KNOWS THIS, GOTTHEIMER, JOE BIDEN IS ON THE BALLOT.

AND WE JUST TALKED ABOUT HIS NUMBERS.

THEY'RE GOING TO CARRY HIM AROUND THEIR NECK LIKE A MILL AROUND THEIR NECK THAT'S GOING TO DRAG THEM DOWN.

REPUBLICAN CANDIDATES ARE GOING TO RUN CAMPAIGNS IN EVERY ONE OF THESE DISTRICTS SAYING WE'RE GOING TO BE A CHECK AND BALANCE ON THE POLICIES, FROM INFLATION TO SOME OF THE MORE RADICAL SOCIAL POLICY.

WE'RE GOING TO BE CHECK AND BALANCING AND REACH TO THE MAINSTREAM, THE MIDDLE.

OUR BASE IS ALREADY FIRED UP ENOUGH.

WE'RE GOING TO REACH BACK TO THE MIDDLE AND GET INDEPENDENTS AND DEMOCRATS TO COME OUR SKBA WIN BACK SOME OF THESE SEATS.

>> ALL RIGHT, BRENT, KIM, GOTTHEIMER, EVEN FRANK POLLONE ALL VULNERABLE?

WHAT DO YOU THINK?

>> I DON'T KNOW IF IT GOES THIS FAR BUT THIS IS DEFINITELY A DIFFICULT CLIMATE FOR DEMOCRATS.

A POLL CAME OUT YESTERDAY FROM MONMOUTH UNIVERSITY SAYING THE STATE STILL WANTS THE DEMOCRATS TO CONTROL THE CONGRESSIONAL CAUCUS.

BUT AS WE SAW THIS PAST NOVEMBER, THERE'S REPUBLICAN SENTIMENT OUT THERE AND YOU KNOW, ANGER THAT COULD MAKE THIS A VERY VOLATILE ELECTION AGAIN AND JUST FOR DEMOCRATS ACROSS THE COUNTRY, AND IF NEW JERSEY IS IN THAT, IT GOES TO SHOW HOW DIFFICULT THIS MIGHT BE FOR DEMOCRATS.

AND BECAUSE THAT SAME POLL SHOWED THAT BIDEN IS UNDER WATER IN NEW JERSEY, AND IN A DEEP BLUE STATE, THAT'S NOT GOOD.

BUT I THINK MALINOWSKI IS THE MOST VULNERABLE.

IF MIKI LOSES SHE'S CONSIDERED A GUBERNATORIAL CANDIDATE IN A FEW YEARS.

BUT WE SAW STEVE SWEENEY GO DOWN.

ANYTHING IS POSSIBLE.

>> DO YOU GET THE FEELING THAT THE RED WAVE WILL CONTINUE INTO THE MIDTERMS?

>> IT'S POSSIBLE.

I THINK I COMPLETELY AGREE WITH WHAT BRENT SAID.

I THINK THE BIGGEST THING THAT WAS INTERESTING FROM THAT POLL THIS WEEK IS JUST HOW POORLY BIDEN IS DOING IN NEW JERSEY, SHOWING THIS ENTHUSIASM GAP AND IT WILL BE INTERESTING TO SEE WHETHER THAT TRANSLATES AT THE BALLOT BOX.

BUT YEAH, I MEAN, LAST NOVEMBER WAS A HUGE SHOCK.

THE POLLING DID NOT INDICATE OR PREDICT WHAT COULD HAPPEN.

I'M VERY INTERESTED TO SEE WHAT'S GOING TO HAPPEN.

>> MIKE, BIDEN'S AN ALBATROSS TODAY.

WILL HE BE AN ALBATROSS COME NOVEMBER?

>> I THINK HE WILL.

AND I THINK THAT'S TOO BAD FOR THE DEMOCRATS, BUT HERE'S THE KEY, I THINK, FOR REPUBLICANS.

THEY NEED TO KEEP TRUMP OFF THE BALLOT.

IF THE REPUBLICANS TALK ABOUT BREAD AND BUTTER, KITCHEN TABLE ISSUES LIKE THE ECONOMY AND THAT SORT OF THING, THEY MIGHT PICK UP A SEAT OR TWO HERE IN NEW JERSEY.

I WOULDN'T BE SURPRISED IF THEY PICK UP TWO SEATS.

IF TRUMP IS ON THE BALLOT, IN OTHER WORDS, IF TRUMP IS PART OF THE MIX, AND YOU GET THIS DEBATE ABOUT WHAT THE REPUBLICAN PARTY REALLY IS AND WHETHER OR NOT IT'S TOO RADICAL, I THINK THAT WILL BE A FAVORABLE SIGN FOR THE DEMOCRATS.

>> LET'S TALK ABOUT THESE MONMOUTH POLLS A LITTLE BIT MORE.

MURPHY, UP OVER 50%.

ASSUMING HE DOESN'T RUN FOR PRESIDENT, BIDEN IS WEIGHED DOWN, YET BOOKER IS UP, EVEN MENENDEZ IS STABILIZED.

CAN YOU PLEASE INTERPRET THE PSYCHE OF THE NEW JERSEY ELECTORATE, BRENT SWANSON?

>> I THINK IT SHOWS THAT WHILE NEW JERSEY'S A BLUE STATE, IT'S NOT LIKE REALLY DEEP BLUE.

I MEAN, YOU KNOW, A LOT OF THESE -- A LOT OF PEOPLE MAKE DECISIONS BASED ON THE PERSON AND NOT JUST THE PARTY.

AND YEAH, I MEAN, I THINK AFTER OUR PREVIOUS GOVERNOR RAN FOR PRESIDENT, I DON'T THINK RESIDENTS WANT TO SEE ANY GOVERNOR AGAIN RUN FOR PRESIDENT, AND THAT COULD BE WHAT'S AFFECTING MURPHY.

AND THAT'S NOT TO SAY ANYTHING NEGATIVE ABOUT CHRISTIE.

I JUST DON'T THINK ANY NEW JERSEYAN WANTS A GOVERNOR RUNNING FOR PRESIDENT.

BUT YOU KNOW, YEAH, IT'S JUST PEOPLE JUST HAVE THEIR PERSONAL PREFERENCES AND THEY CAN GO ALL OVER THE PLACE.

>> AND AT THE SAME TIME, I MEAN, YOU KNOW, YOU SEE BIDEN WAY DOWN, BUT HOW MUCH DIFFERENT IS HE PHILOSOPHICALLY FROM, SAY, CORY BOOKER, WHO'S OVER 55%?

IT'S -- WE'RE A WEIRD STATE FOR THAT KIND OF THING, AREN'T WE?

>> RIGHT.

>> YEAH.

I MEAN, NEW JERSEY IN GENERAL IS JUST AN INTERESTING STATE, AND I THINK OUR POLITICS PROVE THAT.

YOU KNOW, IT'S US AND ILLINOIS IN TERMS OF THE POLITICS THAT REALLY PEOPLE PAY ATTENTION TO WHEN IT COMES TO THE GOOD AND THE BAD.

SO, YEAH, AND THAT'S WHY I THINK NOVEMBER WILL SHOW THAT ANYTHING IS POSSIBLE.

>> ALL RIGHT, KATHERINE, 300 MILLION IN CHILD CARE INFRASTRUCTURE BILLS FROM THE SENATE MAJORITY LEADER DIDN'T GET A CHANCE TO ASK THE BUDGET CHAIR ABOUT THIS.

IT'S COMING FROM THE MAJORITY LEADER SO THAT MEANS IT'S GOT GREEN LIGHTS ALL THE WAY TO THE GOVERNOR'S DESK, NO?

>> YEAH, I ACTUALLY INTERVIEWED THE SENATE MAJORITY LEADER THE OTHER WEEK, AND SHE TEASED THIS WAS GOING TO BE A HUGE PART OF HER PACKAGE.

YOU KNOW, HER OVERALL PACKAGE THAT SHE'S LOOKING AT IS NOT JUST CHILD CARE BUT KIND OF LOOKING AT CONSTITUENCIES THAT MAYBE HAVE BEEN A LITTLE BIT MORE LEFT OUT IN TRENTON IN THE PAST, PEOPLE WHO ARE POOR, PEOPLE OF COLOR, AND SHE FEELS, YOU KNOW, VERY STRONGLY ABOUT THIS.

SO, I DO THINK THIS IS DEFINITELY GOING TO BE A PACKAGE THAT IS NEGOTIATED AS PART OF THE BUDGET IN THE ASSEMBLY, THE BUDGET CHAIR SAID THAT KIND OF SIGNALLED THE, YOU KNOW, THAT THIS WAS SOMETHING THAT WAS GOING TO BE DONE AS PART OF THE BUDGET.

AND SO, YEAH, I THINK IT'S DEFINITELY GOING TO HAPPEN.

MURPHY HAD DONE A BIT ON CHILD CARE, BUT THIS GOES A LOT FURTHER.

>> THIS IS KIND OF LIKE A REALLY BIG, BOLD STATEMENT FROM THE SENATE MAJORITY LEADER WHO APPEARS READY TO ASSERT HERSELF AT LEAST IN TERMS OF POLICY STUFF, RIGHT?

>> YES, DEFINITELY.

I THINK SHE WANTS TO SET AN AGENDA, YOU KNOW, AND FOLLOW THROUGH ON IT JUST LIKE AND DISTINGUISH HERSELF FROM THE PREVIOUS MAJORITY LEADER WHO OBVIOUSLY ALSO HAD A MASSIVE IMPACT IN TERMS OF POLICY.

>> YEAH.

MIKE KELLY, I GOT A MINUTE OR SO.

CAN YOU TALK ABOUT THE NEXT IN YOUR SERIES ON THE 9/11 SAUDI CONNECTION?

>> YEAH, SOME OF YOU MAY KNOW I'VE BEEN DIVING DEEP INTO THE CONNECTION BETWEEN THE SAUDI ARABIAN GOVERNMENT AND 9/11 AND WHAT I'M LOOKING AT NOW IS A SAUDI CONNECTION TO PATTERSON, NEW JERSEY.

IT'S PART -- IT'S PART OF A LONG PIECE OF RESEARCH THAT I'M DOING, AND I THINK IT'S VERY IMPORTANT TO THE WHOLE 9/11 STORY.

>> GOOD.

WE'LL LOOK FORWARD TO THAT.

BRENT, JUDGE RULES THIS WEEK THAT A BRIBE IS A BRIBE IS A BRIBE.

WHAT'S THE IMPACT OF SOMETHING LIKE THAT GOING TO BE GOING FORWARD?

WE'RE TALKING ABOUT THE CASE OF JASON O'DONNELL.

>> YEAH, I MEAN, THAT'S A VERY NEW JERSEY STORY.

WHEN WE HAVE TO DEFINE BRIBE IN COURT.

I MEAN, IT SHOWS THAT, BASICALLY, IT BASICALLY TELLS PEOPLE WHO ARE RUNNING FOR OFFICE THAT YOU DON'T HAVE TO BE IN ELECTED OFFICE TO COMMIT BRIBERY.

SO, THAT COULD HAVE WIDE-REACHING IMPLICATIONS BECAUSE IF THAT WASN'T THE CASE, THEN THAT WOULD -- THAT COULD BE OPEN SEASON FOR CANDIDATES TO ACCEPT BRIBES.

>> MIKE, I FEEL LIKE YOU LOVE THIS STORY OF THE SCANDAL AND ALL THAT.

>> AMAZING THAT WE HAVE A JUDGE SAYING -- A JUDGE IN HUDSON COUNTY, NO LESS, DAVID, TELLING US THAT, WELL, THAT REALLY ISN'T A BRIBE.

BUT THEN YOU HAVE THE APPEALS COURT, SAYING, NO, A BRIBE IS A BRIBE.

YOU KNOW HOW I LOOK AT THIS, THOUGH.

IF THIS IS A BRIBE, WHAT IS A CAMPAIGN CONTRIBUTION?

>> RIGHT.

YEAH.

I MEAN, I GUESS -- >> SERIOUSLY.

>> IT'S JUST A MATTER OF THE KIND OF LANGUAGE YOU USE.

DEPENDS ON WHAT YOUR DEFINITION OF "IS" IS.

>> YES.

ABSOLUTELY.

IT ISN'T REALLY MONEY.

>> RIGHT.

KATHERINE, SAME-DAY VOTER REGISTRATION, MURPHY AND McCUR JI AND SENATOR SCUTARI IS SKEPTICAL.

IS THAT GOING TO HAPPEN?

>> I THINK HE NEEDS TO BE CONVINCED.

HE WAS ASKED ABOUT IT AFTER ONE OF THE SENATE SESSIONS, AND HE EXPRESSED HESITANCY TOWARDS IT, SO I THINK, YOU KNOW, IF THAT'S SOMETHING THAT THE GOVERNOR REALLY WANTS TO ACCOMPLISH, HE'S GOING TO HAVE TO REALLY SIT DOWN AND MAKE IT A PRIORITY.

>> BRENT, I GET THE FEELING THAT DEMOCRATS, HAVING SEEN THE RESULTS OF THE GUBERNATORIAL RACE, ARE FEELING A LITTLE BIT LIKE THEY HAVE THE ABILITY TO PUSH BACK AGAINST THIS GOVERNOR.

IS THAT SENSE RIGHT?

>> YEAH, I DON'T KNOW IF IT'S AS OBVIOUS, BUT THERE DEFINITELY IS A SENSE THAT NO ONE CAME OUT OF NOVEMBER'S ELECTION FEELING REALLY GREAT ON THE DEMOCRATIC SIDE.

SO, YEAH, BUT YOU MIGHT SEE A LITTLE BIT MORE HESITANCY.

WE'VE ALREADY SEEN HESITANCY ABOUT PUSHING SOME MORE PROGRESSIVE THINGS AND PUSHING MORE AFFORDABILITY THINGS AND MAYBE THERE'S, YOU KNOW, YOU MIGHT SEE THAT IN THE BUDGET TALKS GOING BACK TO WHAT WE TALKED ABOUT IN THE BEGINNING.

SO, YEAH, THERE COULD BE A BIT OF THAT.

AND HAPPY 1st BIRTHDAY TO MY DAUGHTER, EVERLY.

>> ALREADY MAKING HER A METS FAN, AREN'T YOU?

>> YES, I AM.

GO METS.

>> MIKE KELLY, SOME THOUGHTS ON THE CONFIRMATION HEARINGS THIS WEEK AND THE HISTORIC MOMENT THAT WE WITNESSED.

>> OH MY GOODNESS.

I THINK THIS IS A HUGE MOMENT IN AMERICAN HISTORY.

THE FACT THAT WE HAVE A BLACK FEMALE JUSTICE ON THE SUPREME COURT, IT'S BEEN A LONG TIME COMING.

I'M DELIGHTED TO SEE IT HAPPEN.

QUITE FRANKLY, WHEN I WATCHED THE WAY THE SENATE HANDLED THIS, PARTICULARLY THE JUDICIARY COMMITTEE AND THE ENTIRE JUDICIARY COMMITTEE LINING UP AGAINST HER, I JUST THOUGHT THAT WAS SHAMEFUL.

THIS IS A -- THIS IS A WOMAN WHO HAS REALLY PUT THE TIME IN AND REALLY BUILT THE TRACK RECORD, AND I THOUGHT SOME OF THE CHARGES THAT WERE THROWN AT HER, PARTICULARLY WITH REGARD TO THE CHILD PORN CASES THAT SHE HANDLED, I THOUGHT WERE REALLY, REALLY MISCONSTRUED, AND IT'S SAD.

BUT I'M GLAD SHE GOT THROUGH IT, AND I THINK SHE'LL BE A GREAT JUSTICE.

>> ALL RIGHT, PANEL, KATHERINE, BRENT, MIKE, GREAT TO SEE YOU GUYS.

THANKS FOR COMING ON.

THAT IS "ROUNDTABLE" FOR THIS WEEK.

OUR THANKS ALSO TO SENATE BUDGET COMMITTEE CHAIRMAN PAUL SARLO.

YOU CAN FOLLOW ME ON TWITTER, @DAVIDCRUZNJ AND SUBSCRIBE TO THE YOUTUBE CHANNEL FOR MORE FROM "CHAT BOX," "BUSINESS BEAT," NJ SPOTLIGHT NEWS, PLUS LOTS OF OTHER LIVE STREAMS.

WE'RE OFF FOR THE HOLIDAY NEXT WEEK.

I'M DAVID CRUZ.

THANKS FOR WATCHING.

FOR ALL THE CREW OVER HERE, HAVE A SAFE, PEACEFUL HOLIDAY, AND WE'LL SEE YOU IN A COUPLE WEEKS.

>> Announcer: MAJOR FUNDING FOR "REPORTERS ROUNDTABLE" WITH DAVID CRUZ IS PROVIDED BY NEW JERSEY REALTORS, THE VOICE FOR REAL ESTATE IN NEW JERSEY.

MORE INFORMATION IS ONLINE AT NJREALTOR.COM.

RWJBARNABAS HEALTH.

LET'S BE HEALTHY TOGETHER.

NJM INSURANCE GROUP, SERVING THE INSURANCE NEEDS OF NEW JERSEY RESIDENTS AND BUSINESSES FOR MORE THAN 100 YEARS.

ROWEN UNIVERSITY, EDUCATING NEW JERSEY LEADERS, PARTNERING WITH NEW JERSEY BUSINESSES, TRANSFORMING NEW JERSEY'S FUTURE.

PROMOTIONAL SUPPORT IS PROVIDED BY "NEW JERSEY BUSINESS MAGAZINE," THE MAGAZINE OF THE NEW JERSEY BUSINESS AND INDUSTRY ASSOCIATION, REPORTING TO EXECUTIVE AND LEGISLATIVE LEADERS IN ALL 21 COUNTIES OF THE GARDEN STATE SINCE 1954.

AND BY POLITICO'S "NEW JERSEY PLAYBOOK," A TOPICAL NEWSLETTER ON GARDEN STATE POLITICS, ONLINE AT POLITICO.COM -- Captions by VITAC -- www.vitac.com