Category Archives: 2014

Inquirer Editorial: Lessons unlearned

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POSTED: June 10, 2014

Having twice failed to forcibly reshape Rutgers University, New Jersey Senate President Steve Sweeney is back with yet another ham-handed attempt to commandeer the state school’s governance. Although reform and restructuring of the system should be on the agenda, Sweeney’s approach to the issue continues to reveal a remarkable refusal to learn from his mistakes.

The senator’s latest scheme would pack the university’s Board of Governors with additional political appointees, shifting the balance of power to the governor and legislators. The takeover bid narrowly escaped a Senate committee last week, but that ought to be as far as it goes.

With a 15-member Board of Governors and a less powerful 59-member Board of Trustees – which Sweeney (D., Gloucester) tried and failed to blow up last year – Rutgers hardly needs even more overseers. Nor is micromanagement by politicians a recipe for better university governance.

A similarly dictatorial approach alienated many at Rutgers in 2012, when Sweeney’s proposed merger of Rutgers-Camden and Rowan University came up short despite its merits.

Rutgers officials can help head off Sweeney’s latest attempt by releasing an internal report on potential governance improvements. The university must embrace a measured and open approach to reform lest it be vulnerable to political hijacking.

Katz and Lenfest win Inquirer parent with $88M bid

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POSTED: May 29, 2014

Inquirer co-owners Lewis Katz and H.F. “Gerry” Lenfest won a private auction for the newspaper and its parent company Tuesday, ending a fractious battle for control that prompted the business’ sixth ownership change in eight years.

Their $88 million bid bested a group led by co-owner George E. Norcross III and was $27 million more than the partners spent two years ago to form Interstate General Media Holdings L.L.C.

Held at a Philadelphia law firm and closed to the media, the auction capped months of litigation between IGM’s owners and turmoil for the company, which employs about 1,800 people at The Inquirer, Philadelphia Daily News, three websites, and a printing plant in Conshohocken.

It also comes as the news industry continues to battle declining revenue, decreased circulation, changes in reader habits, and struggles to profit from digital operations.

“We know more than anybody how difficult this business is,” Katz told employees Tuesday afternoon at the company’s Market Street headquarters. “We’re going to give it our best. We’re going to try to bring in the best. And, hopefully, we’ll have a wonderful result.”

The pair said they would rename the company and own equal shares, though they hope to lure other investors.

Each is among the most prominent businessmen and philanthropists in the region. Katz, 72, grew up in Camden and made millions in banks, billboards, and parking lots. His son, Drew, 42, chief executive of a Cherry Hill-based billboard company, is expected to play a role in the new venture.

Lenfest, 83, made about $1 billion when he sold his cable company to Comcast in 1999 and has spent recent years giving away his fortune to philanthropic causes.

In their first move, the men announced that Lenfest would serve as interim publisher until a permanent one could be hired. He will replace publisher Robert J. Hall, who Lenfest said planned to retire.

Hall declined to comment as he left the auction.

“We feel very fortunate we were able to prevail in the auction,” Lenfest said. “We want to return The Inquirer to the great newspaper it has been for many years.”

He also endorsed the continued newsroom leadership of Inquirer editor William K. Marimow, who was fired in October by Hall with the support of Norcross.

Marimow’s ouster brought into public view a long-simmering feud between Katz and Norcross, who formed the two-person management committee that together approved all major business decisions at IGM.

Marimow was later reinstated by a judge, but both sides conceded that their disagreements had pushed the company toward paralysis, and they moved for a court dissolution.

Before Tuesday’s auction, Norcross’ group – with owners Joseph Buckelew and William Hankowsky – held 57.45 percent of IGM’s shares, while Katz and Lenfest had 42.55 percent. The auction was to decide which group would buy out the other.

Using the court-ordered auction formula, the Norcross group is scheduled to be paid $41.7 million within 15 days.

Norcross’ personal profit is unclear. The 58-year-old businessman and South Jersey Democratic Party leader bought out another IGM partner, Krishna Singh, for an undisclosed price last year.

If Singh simply recouped his initial investment, Norcross may have netted about $6 million at Tuesday’s auction, according to figures and a sale formula outlined in court filings.

Norcross’ attorney, Robert Heim, described the profit only as a “reasonable return.”

Norcross declined to comment as he left the auction.

“We are happy for the company’s employees, readers, and advertisers that this issue is now resolved,” the Norcross group said in a statement. “It is time to return the company’s focus to journalism and away from conflict among its owners.”

Alan D. Mutter, a former newspaper executive and now managing director of Tapit Partners, a Silicon Valley consulting firm, said the price appeared “generous” for a newspaper company, especially one that might not be profitable.

“It suggests a commitment to sustaining the quality of the newspapers [that] surpasses the dollars and cents,” Mutter said. “However, if the losses get bigger, they might have to reconsider how much they want to underwrite the journalism of the two newspapers and the websites.”

Katz said both sides won.

“One party got a wonderful return on his investment,” he said, “and the other party has the privilege to give the newspaper . . . all it deserves.”

Scattered applause broke out as the auction result reached The Inquirer newsroom just before 11 a.m.

Nancy Phillips, Katz’s longtime companion and The Inquirer’s city editor, teared up as she accepted hugs from colleagues. Editors and reporters also greeted Marimow with congratulations and handshakes.

Huddling with a few staffers who, like him, had previously been targeted by Hall for possible firing, Marimow expressed relief that the owners’ battle had ended.

“I’m really pleased that Gerry Lenfest and Lewis Katz prevailed,” he said in an interview later. “I believe they are committed to the kind of public-service journalism that Philadelphia, its suburbs, and South Jersey really require.”

While Tuesday’s ownership change elicited elation in some corners, it left others with questions. Bill Ross, executive director of the Newspaper Guild, the union that represents nearly 500 employees at the company, said he wondered how Katz and Lenfest would recoup the cost of their $88 million bid.

“We look forward to moving forward, rebuilding the company, and making it very clear to the new owners that they better not come looking for concessions from our union,” he said. “We’ve done enough to help them, and we will continue to help, but we’re done giving.”

Katz and Lenfest said they took on no new debt to finance their offer, a factor that led the newspapers in 2009 into bankruptcy and to their eventual sale to hedge funds.

The decision, in 2012, by a group of six Philadelphia and South Jersey investors led by Katz and Norcross to buy the papers was lauded as a development that would return The Inquirer and the Daily News to local control. But within a year, that partnership soured.

Under rules established by a Delaware judge, the bidding Tuesday morning at the Dechert law firm was to rise by $1 million every 10 minutes until one side dropped out. Both sides of the bidding war declined to describe the auction itself, citing a gag order from the judge.

In his meeting with employees, Katz said its outcome surprised even him.

“I did not expect this result,” he said. “I would have bet anything that I would be cashing the big check today.”

Lenfest said Tuesday that he expected others to join the new ownership group, though he did not name any potential investors. The company’s affairs will now be run by a board of directors, he said, and will not have the mutual-veto arrangement that led to the impasse between Katz and Norcross in the first place.

Katz and Norcross had accused each other of meddling in newsroom matters. The new owners told employees Tuesday they did not intend to be involved in newsroom management.

Lenfest said there were no plans to close the Daily News, whose future has remained uncertain amid repeated ownership change. Asked whether they would seek new leadership for philly.com, currently led by Norcross’ daughter, Alessandra, Lenfest again demurred, saying that decision was best left for the future.

The only substantial shift Katz and Lenfest appeared prepared to discuss Tuesday was the search for a permanent publisher and CEO. Lenfest told employees that they had already identified five potential candidates and expected the process to take several months.

Inquirer executive editor Stan Wischnowski, who led the newsroom during Marimow’s absence, said one of the company’s highest priorities must be unifying its three newsrooms behind a single digital strategy.

“High-quality journalism is still what drives us,” Wischnowski said, “so if we want to broaden our reach, then our content has to be relentlessly timely, interesting, and important on all platforms.”


WHAT’S NEXT

H.F. “Gerry” Lenfest will become interim publisher while a search is conducted for a permanent replacement.

Other investors are expected to join the new company, which will be run by a board of directors.


jroebuck@phillynews.com

215-925-2649

@jeremyrroebuck

Inquirer staff writer Angelo Fichera contributed to this article.

At the scene of the plane crash that killed Philly Inquirer co-owner

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BEDFORD, Mass. — An airport employee watched as the Gulfstream jet raced past the end of a runway, plunged down an embankment and erupted in flames.

The witness account of the Saturday night crash that killed all seven people aboard, including Philadelphia Inquirer co-owner Lewis Katz, provided some of the first clues as investigators began piecing together what went wrong during the attempted takeoff from a runway surrounded by woods outside Boston.

They were looking for the plane’s cockpit voice recorder and flight data recorder and would review the pilots’ experience and the aircraft’s maintenance history, Luke Schiada, a National Transportation Safety Board investigator, said Sunday. He said investigators also are looking for surveillance video that may have captured the crash at Hanscom Field.

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A NTSB official walks through the wreckage.Photo: AP

“We’re at the very beginning of the investigation,” Schiada said.

The National Transportation Safety Board planned a media tour of the crash site Monday afternoon and, later in the day, a briefing on the status of its investigation.

The plane was carrying four passengers, two pilots and a cabin attendant, according to the NTSB.

Katz was returning to New Jersey from a gathering at the home of historian Doris Kearns Goodwin. Also killed was a next-door neighbor of Katz’s, Anne Leeds, a 74-year-old retired preschool teacher he had invited to accompany him, and Marcella Dalsey, the director of Katz’s son’s foundation. The fourth passenger, Susan Asbell, 67, was the wife of former Camden County, New Jersey, prosecutor Sam Asbell.

The identities of the other victims weren’t immediately released. Nancy Phillips, Katz’s longtime partner and city editor at the Inquirer, was not aboard.

A public memorial service is planned Wednesday at Temple University for Katz, a 1963 graduate of the university and a major donor.

Katz, who was 72, made his fortune investing in parking lots and the New York Yankees’ cable network. He once owned the NBA’s New Jersey Nets and the NHL’s New Jersey Devils and in 2012 became a minority investor in the Inquirer.

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The crash site.Photo: AP

Less than a week before the crash, Katz and Harold H.F. “Gerry” Lenfest struck a deal to gain full control of the Inquirer as well as the Philadelphia Daily News and Philly.com by buying out their co-owners for $88 million. Lenfest said Sunday that the deal will be delayed but will continue. Katz’s son, Drew, will take his father’s seat on the board of directors, Lenfest said.

When bidding on the company, Katz and Lenfest vowed to fund in-depth journalism and retain the Inquirer’s editor, Bill Marimow.

The fight over the future of the city’s two major newspapers was sparked last year by a decision to fire Marimow. Katz and Lenfest wanted a judge to block the firing. Katz sued a fellow owner, powerful Democratic powerbroker George Norcross. The dispute was settled when Katz and Lenfest, a cable magnate-turned-philanthropist, bought out their partners.

The event at Goodwin’s home in Concord, Massachusetts, was held to support an education initiative by Goodwin’s son. Afterward, Katz, Goodwin’s friend of nearly 20 years, joined the author and others at dinner, where they talked about their shared interests, including journalism, Goodwin said.

“The last thing he said to me upon leaving for the plane was that most of all what we shared was our love and pride for our children,” she said in a statement.

Dalsey’s daughter, Chelsea Dalsey, said her mother also was on the plane, but she declined to comment further. Marcella Dalsey was president of KATZ Academy Charter school, which she founded with Lewis Katz, and is the former owner of an ice cream shop in Haddonfield, New Jersey, a suburb of Philadelphia.

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The plane’s landing gear landed a fair distance away from the fuselage.Photo: AP

Platt Memorial Chapels in Cherry Hill, New Jersey, is handling funeral arrangements for Katz and Asbell, who was a friend of Katz and director of the Boys and Girls Club of Camden.

Schiada said the airport employee who saw the crash reported the jet never left the ground. It came to rest 2,000 feet from the end of the paved runway. He said the location of the burned and mangled wreckage, in a gully filled with water, complicated the initial examination and the recovery effort.

State police troopers and divers were among those searching for items from the wreckage Sunday night.

Hanscom Field is about 20 miles northwest of Boston. The regional airport serves mostly corporate aviation, private pilots and commuter air services.

Chris Christie and America’s Poorest City

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MATT KATZ | JULY 11, 2014
During a routine business meeting in a conference room in Trenton on Thursday, the New Jersey Economic Development Authority approved its third largest tax break in state history — $260 million for a new manufacturing plant on the waterfront in Camden.

The unanimous vote was remarkable in that it is yet another indication that Camden – routinely derided as the poorest and most dangerous city in America – has become something of a laboratory for Gov. Chris Christie to experiment with urban renewal.

Through a mix of state intervention in police and schools, tax incentives for large businesses and a personal touch with local Democratic politicos, Christie has created a potential legacy for his governorship and a platform for winning swing voters in a 2016 presidential race.

But to some long-time Camden residents and political observers, Christie is repeating a failed pattern of the past by building up institutions without directly helping the people. To that end he has partnered with George Norcross, the de facto leader of the South Jersey Democrats, the chairman of Camden’s Cooper University Hospital and the former co-owner of The Philadelphia Inquirer. For decades Norcross has been able to amass political donations to become a kingmaker in New Jersey politics.

After Christie took over the Camden schools last year — a move that had Norcross’s support — Christie spoke at an event that Norcross held at Cooper University Hospital.

“This stuff isn’t easy to do,” Christie said. “But nor should it be easy for us to continue to ignore these children. Let’s be honest. That’s what we have done. We can rationalize as much as we want. We have ignored their futures. And today is a symbol of the beginning of the end of that conduct.”

Christie speaks in grand terms when visiting Camden — and he has visited often. Christie held about two dozen public events in the city, more than any municipality besides Trenton since 2012. That’s an extraordinary number — especially for a Republican in a city that went 97 percent for President Barack Obama in 2012.

Recently, Camden has offered Christie safe haven when things in Trenton get hot. It was one of his first public stops after the Bridgegate story broke in January; he held five events in one day last month while his chief of staff was testifying about the lane closures before the legislature, 40 miles away.

Unlike Newark, New Jersey’s largest city, which has a more fractious political climate, Christie is welcomed in Camden because he has the support of Norcross. Christie has relied on the bloc of votes that Norcross controls in the legislature for initiatives like public worker benefits reform, which forced Democrats to buck their labor union base. And Christie has supported Norcross’s priorities for remaking Camden, from expanding higher education institutions to signing a bill, sponsored by Norcross’s brother, State Sen. Donald Norcross, that created a new kind of publicly-financed, privately-run school in Camden. The first such school, the KIPP Cooper Norcross Academy, is now under construction.

Sen. Donald Norcross also co-sponsored a bill that created new corporate tax incentives in Camden. It was signed by Christie. One result of that bill was $260 million for Holtec International, which manufactures industrial energy equipment, over 10 years — that’s the deal that the Economic Development Authority approved on Thursday. Holtec’s CEO, Krishna Singh, was George Norcross’s partner when he owned The Inquirer, and Norcross sits on Holtec’s board of directors. The company is expected to create 235 new jobs in Camden, but there’s no guarantee Camden residents will get those positions.

A spokesman for Norcross said Norcross will not financially benefit from the deal, and is not paid for his board position. Michele Brown, the close Christie adviser who is his top appointee at the Economic Development Authority, said she was not aware of Norcross’s connection with the company until the press reported on it this week. She told WNYC that she had no contact with Norcross about the deal.

But the Christie-Norcross relationship has been publicly evident elsewhere in Camden. Last year, citing the fact that the city had 23 of the state’s 26 worst performing schools, Christie initiated a state takeover of the district and appointed a new superintendent who subsequently laid off teachers to deal with a budget gap. But Norcross-backed Democrats, most notably the mayor and city council in Camden, continued to support Christie. By contrast, leaders of other urban school districts under state control are agitating for independence.

This political support is the reason why Christie has spent so much time here, his advisers say — he can get things done. Christie long worked with Newark Mayor Cory Booker, but Booker has moved on to the U.S. Senate and anti-Christie activists there have grown more vocal.

In Camden, Christie has built alliances with African American and Hispanic politicians that his advisers believe will resonate in a presidential race. And they think it could help him not just in cities, but in towns that surround those cities — like in the nearby Pennsylvania suburbs around Philadelphia, filled with swing voters.

A photographer and videographer document Christie’s trips to Camden (as they do for his visits to other towns), collecting images of cute moments, like when he plays catch with a bunch of kids at a Little League field or shoots free throws at a rec center. Last month, he missed 11 of those shots, but asked for the ball back one more time — when he finally banked it in.

That constant presence is bearing fruit. He got just 604 votes in the city in 2009, but tripled that in 2013. Small numbers still, but a trajectory his advisers like to see.

“In all the years of previous governors, we were always the forgotten city, they never came to Camden and showed the love that Christie does,” said Emiliano Reyes Jr., a 40-year-old Camden truck driver, who sees new development near the waterfront as an optimistic sign. “It’s like flowers growing out of concrete, man it’s awesome, it’s awesome.”

But for some who have been involved in Camden politics for years, skepticism abounds.

Kelly Francis, long-time head of the NAACP here, stood one afternoon at a parking lot on the Camden waterfront — on the very site where yet another tax incentive will lead to yet another development that Francis doesn’t believe will have any impact on the community.

This one is for $82 million, so the Philadelphia 76ers can open a practice gym. Fifty new jobs are being created, but none are guaranteed for Camden residents.

The waterfront is filled with similarly-gleaming investments that were intended to revitalize the economy here — an aquarium, a battleship museum, a minor-league ballpark — but so far none of them has had a transformative effect, and few jobs for city residents have been created. All make so-called PILOTs — Payments In Lieu of Taxes. None of that money goes to the Camden school district, which relies on the state for almost all its funding.

The state also funds most of the city’s municipal budget, and Christie has found another way to save money in the long-term: He provided $10 million in state funding so the city police department could be closed and replaced with a countywide force.

Camden officials had long complained of overly-generous police contracts. By eliminating the police department they said they could roll back those perks. He has said he would consider replicating this experiment in other cities, too.

The police chief, Scott Thomson, ran the old force and is at the helm of the new one. He says there are more cops on the street and violent crime is rapidly dropping.

“You have to remember our residents were being victimized at Third World country rates,” Thomson said. “It was time for a new paradigm.”

But activists think Christie created a problem he could then fix. When he first came into office, Christie didn’t provide enough state dollars to maintain staffing levels. Nearly half the department was temporarily laid off, leading to a drop in arrests and a record-setting murder rate. That created a crisis, said the NAACP’s Francis, that allowed the local police to be taken over by outside politicians.

“It hasn’t made any impact on the resident of Camden,” Francis said. “We’re still the poorest, we’re still the most dangerous city in the country.”

Other budget cuts have negatively affected Camden’s poor even as Christie argues that he is trying to help them. He eliminated the Earned Income Tax Credit for the working poor. He rolled back benefits for businesses in cities’ Urban Enterprise Zones. And he slowed the school construction program, so century-old buildings in Camden continue to fall apart.

The governor cites state fiscal woes, saying he is trying to balance all residents’ needs. And like he demonstrated that day on the basketball court, he promises to keep coming back, to keep doing more, to keep trying to get the ball in the hoop.

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Political reporter Matt Katz is The Christie Tracker at WNYC.org. NJ Spotlight is hosting his blog and running his stories, which can also be heard on WNYC 93.9 FM and 820 AM, as well as New Jersey Public Radio: Trenton 88.1, Sussex 88.5, Netcong 89.3, and Toms River 90.3.

Listen to Matt Katz at New Jersey Public Radio/WNYC  http://www.podtrac.com/pts/redirect.mp3/audio.wnyc.org/news/news20140711_christie_camden_web.mp3

Read more in Katz on Christie at http://www.njspotlight.com/stories/14/07/11/chris-christie-and-america-s-poorest-city

Copyright 2014 NJ Spotlight

The Christie Political Machine Family Tree

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BY ALEC MACGILLIS

February 12, 2014

THE BOSSES

GEORGE NORCROSS

Controls Democratic politics in South Jersey, and increasingly the rest of the state.

JOE DIVINCENZO

The North Jersey boss avoided federal investigation in 2002 under Christie’s watch.

THE ENFORCERS

MICHAEL DREWNIAK

Christie’s famously profane spokesman; once described a Star-Ledger reporter as “such a fucking mutt.”

BILL STEPIEN

Ran the office that oversaw grants to local officials who agreed to endorse Christie. He kept tabs using color-coded dossiers.

THE TRENTON HACKS

KEVIN O’TOOLE

Christie’s point man in the legislature; has served as a link to both “Joe D.” and Norcross.

BILL BARONI

New Jersey’s top staff appointee at the Port Authority; fall guy for the bridge affair.

THE CONSIGLIERES

DAVID SAMSON

Appointed by Christie to chair the Port Authority. Also represented the developer of a big Hoboken project that benefited from a study paid for by the Port Authority.

BILL PALATUCCI

Introduced Christie to the Bushes; now works at a powerful Newark law firm.

THE GUYS FROM BACK IN THE DAY

DAVID WILDSTEIN

Statistician for Christie’s high school baseball team; dirty trickster at the center of the bridge scandal.

TODD CHRISTIE

The governor’s overeager younger brother has poured money into Republican causes.

THE CONFIDANTE

MICHELE BROWN

Longtime close aide who regularly traveled with Christie; helped pick Christie’s Sandy comeback ad that portrayed him in glowing terms.

THE CAMPAIGN-IN-WAITING

MIKE DUHAIME AND MARIA COMELLA

DuHaime, Christie’s chief strategist, managed Rudy Giuliani’s ill-fated 2008 campaign. Comella, Christie’s communications chief, served as Giuliani’s spokeswoman and guardian to Sarah Palin.

In New Jersey, Leader of an Agency Under Investigation Is Given a Judge’s Robe

By MICHAEL POWELL

 

Gov. Chris Christie recently paused in his war over traffic cones, gargantuan traffic jams and accusations of political retribution to nominate a few men as judges on the state’s Superior Court.

His nomination of John J. Matheussen, a fellow Republican, caught my eye. These are important, not to mention pleasant, jobs carrying salaries of at least $165,000 and the possibility of lifetime tenure.

Mr. Matheussen served a decade as the chief executive of the Delaware River Port Authority, a vast bistate fief that governs four major bridges to Pennsylvania and a mass transit system. There is no arguing that his was a complex job.

But unfortunate facts quickly crowd in.

In Philadelphia, a federal prosecutor is investigating the Delaware River Port Authority and its unchecked spending on development projects. These projects, without fail, came tethered to the authority’s commissioners and to Mr. Matheussen, who made $220,000 and had to sign off on every deal. The prosecutor sent out the most recent round of subpoenas last month.

I scratched a little further and read a 77-page report issued by the New Jersey comptroller in 2012. It turns out the agency, with the explicit knowledge of Mr. Matheussen, doled out a spectacular number of loans and grants to politically connected organizations, pitching the authority deep into debt. The comptroller’s investigators pored through the authority’s files and reported that, without fail, every project was missing required documentation.
A few authority projects came accompanied by almost nothing. No formal application, no specs, no work plan, nothing. The money invariably was paid out.

“In every area we looked at, we found people who treated D.R.P.A. like a personal A.T.M., from commissioner to private vendors to community organization,” noted A. Matthew Boxer, the state comptroller.

At this point a reasonable observer might inquire of the governor: Say what?

I wondered if the governor saw hidden strengths in his nominee. I put these questions to Colin Reed, a spokesman for Governor Christie, sending him a detailed email on Friday, and another on Monday. I am still waiting to hear back.

Not to worry. The New Jersey State Senate offers a constitutional check. It is controlled by the Democrats and they can push, prod, ask tough questions and reject nominations if they so desire.

They did not. The Democrats on the Judiciary Committee, with one abstention, voted for Mr. Matheussen’s nomination. (The full Senate approved the nomination that same day.)

Reporters asked the State Senate president, Stephen M. Sweeney, a Democrat, if Mr. Matheussen came with more ethical dents than a demolition derby hot rod.

“I’ve known John for many years, and he’s proven to be a dedicated public servant with exceptional ability,” Mr. Sweeney replied. Mr. Sweeney is well acquainted with the authority. His brother, Richard, serves as a commissioner on the Delaware River Port Authority and has received a subpoena in the federal investigation.

Which leads me to this point:

Governor Christie loves to emphasize his bipartisan credentials (It apparently was in search of bipartisan cred that his staff turned Fort Lee into a parking lot). When it comes to the southern half of the state, he is undoubtedly correct.

Governor Christie has struck a wonderfully accommodating partnership with George E. Norcross III, who is chairman of a powerful medical center in Camden and runs a politically wired insurance agency — Mr. Norcross arranged to get another insurance agency an authority contract, and it in turn gave his firm a $455,000 taste of that commission. Mr. Norcross long ago took out a lifetime mortgage on ownership of the Democratic Party in southern New Jersey.

Mr. Sweeney, a childhood friend of Mr. Norcross, is a brigadier in this organization.

Years ago, Mr. Norcross convinced Mr. Matheussen to give up his State Senate seat and become chief executive of the Delaware River Port Authority. This allowed Mr. Norcross and the Democrats to take control of the State Senate. In exchange, he worked out a deal that allowed Mr. Matheussen to keep his state pension even as he moved over to the authority, in that way quadrupling its value.

This is known as New Jersey win-win.

Which brings me to the point of this tale: “Christie’s totally fortified the boss system,” noted a prominent Republican in Trenton, who spoke on condition of anonymity as he saw no percentage in voicing such unpleasant thoughts on the record. “He’s strengthened and empowered it.”

Mr. Matheussen came to embrace the virtues of bipartisanship. At the authority, a reform-minded staff member asked him why Mr. Norcross’s insurance company, among others, received payments even though it had no contract with the authority.

The comptroller discovered the staffer’s email, in which she described what happened next.

“All I ever got was a closed door meeting where I was told ‘you don’t want to get in the middle of this,’ ” she wrote, adding that it was as if she was dealing with the mob “or somethin’.”

Two Republican state senators voted against the nomination of Mr. Matheussen. Their reasoning was old fashioned.

“I view becoming a Superior Court judge as the capstone of an impeccable professional career,” State Senator Mike Doherty said. “When a report says you and others used a public agency as an A.T.M. and you didn’t do anything to stop the abuses, you don’t deserve a pat on the back.”

As it happened, on Friday I reached Mr. Matheussen. I asked about his decade running an agency now under federal investigation. The judge demurred.

“I think that’s a question you would have to ask those who nominated me,” he said.

The judge should be credited with offering excellent advice.

Email: powellm@nytimes.com

Twitter: @powellnyt

Rutgers board of governors chair will fight bill to increase political appointees

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By Kelly Heyboer and Matt Friedman/The Star-Ledger
May 30, 2014

NEW BRUNSWICK — The 15-member Rutgers University board of governors is the right size and does not need Trenton lawmakers adding more political appointees, the board chairman said Thursday in his first remarks about a controversial measure to expand the school’s powerful governing body.

Gerald Harvey, the board chairman, said he planned to submit written testimony to the state Legislature on Monday calling for lawmakers to reject a proposal introduced by state Senate President Stephen Sweeney (D-Gloucester) to increase the board to 19 members.

“The bill isn’t necessary,” Harvey said. “Each of the governors I’ve spoken to have told me they don’t think the bill is a good idea.”

Sweeney riled many at Rutgers when he introduced a bill to add four members to the board, which oversees the 65,000-student state university. Under the current system, eight members are appointed by the governor and seven are chosen by the Rutgers board of trustees, a separate body made up mostly of university alumni. Proponents say the system helps keeps political influence and meddling in Rutgers affairs to a minimum.

Under Sweeney’s proposal, the four new members of the board of governors would all be political appointees, shifting the balance of the board. The governor would get to fill 10 seats, and the president of the state Senate and the speaker of the General Assembly would each get to fill one seat. The trustees would continue to control seven seats.

The Rutgers board of trustees is scheduled to hold an emergency meeting about the legislation at noon today on the New Brunswick campus. The 59-member group is expected to vote to oppose the bill.

Sweeney said Rutgers officials were overreacting to his proposal to expand the board by adding four new members — all with medical and health backgrounds — to reflect the university’s recent addition of several new medical and health science schools.

“They’re having an emergency meeting tomorrow, for what?” Sweeney said. “This is them running around saying the sky is falling, and honestly it’s not. Nowhere in the bill does it do anything to hurt the trustees.”

The showdown over the expansion of the board of governors is the latest skirmish between Sweeney and Rutgers officials. In 2012, the Rutgers board of trustees led a successful fight to derail a plan backed by Sweeney and his political patron, George Norcross, the most powerful Democrat in New Jersey, to merge Rutgers-Camden and nearby Rowan University in Glassboro.

Norcross is chairman of Cooper University Hospital in Camden, which has partnered with Rowan in a new South Jersey medical school.

In what some say was political payback, Sweeney introduced legislation to eliminate the board of trustees, saying Rutgers did not need two governing bodies. But the measure failed.

Sweeney has repeatedly said Rutgers’ system of governance is antiquated and needs to be updated — especially after the school found itself at the center of several sports-related scandals in recent years.

The state Senate’s higher education committee plans to hold a hearing Monday in Trenton on Sweeney’s new bill (S-1860) to expand the board of governors. Speaker Vincent Prieto (D-Hudson) has proposed an identical bill in the Assembly.

Harvey, the board chairman, said he could not attend Monday’s hearing in Trenton, but would submit written testimony opposing the measure that would be read by a fellow board member.

Harvey said he would argue that adding four new members to the board with medical backgrounds — to reflect Rutgers’ addition of medical schools last year — is unnecessary. The board already expanded from 11 to 15 members last year after Rutgers’ merger with the former University of Medicine and Dentistry of New Jersey.

“The (Sweeney) bill addresses a need that was already addressed,” Harvey said. “This proposed bill simply muddies the water.”

In addition, he said, the board would soon have a number of open seats because the terms of several members are expiring, providing the opportunity to add more members with medical backgrounds. Harvey’s own term on the board is among those ending next month.

Sweeney is not the only one questioning whether Rutgers’ governance system needs to be reformed. Last summer, Rutgers formed a task force to study its governing boards after it merged with UMDNJ. The task force was headed by the Rev. M. William Howard Jr., pastor of Bethany Baptist Church in Newark, who is a former chairman of the Rutgers board of governors.

Howard’s group submitted its recommendations over the winter, though Harvey said he and Dorothy Cantor, the chairwoman of the board of trustees, had chosen not to make them public while the university continues to consider reforms.

The task force did not recommend expanding the board of governors or eliminating the board of trustees, Harvey said.

The two boards are continuing to study whether they need to make some changes, including reforms to their committee systems.

“Sen. Sweeney’s bills have been a distraction,” Harvey said.

George Norcross Ally Joins Rutgers Board of Governors

NEW BRUNSWICK, NJ—Amid a long line of political controversies between State Senate President Steve Sweeney and Rutgers University, the New Jersey Senate confirmed the Governor Chris Christie’s appointment of William M. Tambussi to sit on the school’s Board of Governors.

Both Sweeney and Tambussi are close allies of George Norcross III, one of the state’s most powerful unelected political players.

Tambussi is a partner at Brown and Connery, LLP, a South Jersey law firm which has represented George Norcross, as well as Cooper Health Systems, where Norcross serves as the Chairman of the Board.

On August 19, the Senate voted to approve Tambussi’s appointment to the board, which is a combination of individuals appointed by the state’s Governor and others selected from amongst the 59-member Board of Trustees.

“Rutgers is a valuable resource for all the residents of New Jersey,” Tambussi said, adding that the Camden campus would be the focus of his service on the board.

“I think the Camden campus is a very integral part of that. My primary goal is to see the Camden campus is enhanced to its full extent.”

Governor Christie had nominated Tambussi to the Board of Governors, as part of a larger package of appointments, back in May 2013.  Senator Sweeney blocked his nomination, along with several of Christie’s other nominees.

According to a 2008 PolitickerNJ report, Brown and Connery  is considered one of New Jersey’s most powerful law firms.

A 2014 Financial Disclosure Statement shows that Tambussi is a partner for Lawland Associates, a Labor Attorney for the Vineland City Housing Authority, a Municipal Attorney for Chesilhurst Borough, and a Special Counsel Professional for Pennsauken Township.

Sweeney had argued against Governor Christie appointing New Brunswick resident Martin Perez to the Board of Governors.  In his argument, Sweeney cited the new requirement of New Jersey state law to have at least one board member from Essex and Camden County.

However, the Superior Court in New Jersey ruled that Tambussi’s appointment satisfied the Camden County requirement.

“If we desire respect for the law, we must first make the law respectable.” – U.S. Supreme Court Justice Louis D. Brandeis