NJ Gov Christie says Delaware River 'Port' Authority reforms don't go far enough - more vetoes

New Jersey Governor Chris Christie (Repub) today racheted up pressure on the Delaware River Port Authority - a bistate toll bridge operator in Philadelphia with no port but a hemorrhaging suburban rail line PATCO and a variety of 'economic development' rackets - holding a press conference outside its head offices to announce more vetoes of its 'minutes' and to denounce its board of commissioners for fake reforms.

The press conference came after a private meeting with the executive director, John Matheussen.

Christie said he was not going to ask for the dismissal of Matheussen, a former state politician, but that he was urging Matheussen to be a "change agent."

Under pressure from Christie the authority has already agreed to discontinue the handouts to local groups called 'economic development grants.'

Suspicious "rush" of spending

Christie said a flurry of spending by DRPA - Christie called it "an extra rush" - after he was elected on a reform mandate was suspicious. The spending was authorized by the board which comprises ex-Gov Corzine (Dem NJ) and Gov Rendell (Dem PA) appointees.

"Double standard" between board and staff

In a letter today Christie vetoed a DRPA board resolution banning political activity by staff in work hours or using DRPA facilities, saying that by exempting DRPA board members it set a double standard. The ban would have to apply to  board members as well as staff before he would sign it.

Christie announced a veto of a "post-employment restriction" as not tough enough. He wants all employees director and above as well as commissioners barred from accepting employment with any vendor or contractor to DRPA for two years from ending work at DRPA.

Says Christie's letter to DRPA: "The public must be able to trust that commissioners or high-level DRPA employees are motivated solely by the desire to further the interests of the authority, not to obtain lucrative future employment with DRPA vendors or consultants… Therefore I am compelled to veto this resolution and request the board adopt a resolution that conforms to my prior directives…"

"They can't investigate themselves"

Christie also vetoed a DRPA resolution to hire lawyers to investigate alleged wrongdoing in award of insurance brokerage contracts, saying no one employed by the authority would be accepted as independent enough to investigate wrongdoing. He said all DRPA documents on insurance brokerage should be handed over to the New Jersey state Comptroller within 30 days.

"Hand over documents to state Comptroller"

Among the Christie vetoes was creation by DRPA of an audit committee to be chaired by the Pennsylvania Auditor General. Christie said the authority must accept full audits of its budget and its performance by the New Jersey Comptroller. He said that following objections from his office the DRPA board had met again and granted the NJ Comptroller the right to audit. Christie said he would sign that minute of the second meeting.

"Serious questions about leadership"

Gov Christie said: "Doing only enough to get out of the headlines and away from the ethical cloud that has formed over the authority is simply not good enough. Attempts to pass off half measures, watered-down resolutions and double standards as real reform raises serious questions about the leadership and commitment to accountability at the authority.

"The reforms I called for, along with Governor Rendell and numerous other public officials, represent only a baseline of reform needed at the authority. Failure to comply with these basic and common sense directives will not restore the tollpayers' confidence in the activity of the DRPA. The public will not accept (the appearance of) activity in place of real action and neither will I. The board and leadership at DRPA must do better."

Matheussen responds with hiring freeze, cost reduction goal

In another development today DRPA CEO John Matheussen announced a hiring freeze and the goal of a 2% reduction in the operating budget in 2001. A press release quotes him: “Many of us don’t have to look past our own household to know that the economy is showing little or no signs of improvement. Recent daily economic news supports the notion of a continued recession for our region and nation.”

He claimed the following cost containment accomplishments in recent years:

•    "We reduced staffing by over 120 positions and have frozen salaries over several years and negotiated 3% salary increases with our employees.
•    "A cost containment program curtailing travel, vehicle and equipment purchases.
•    "Reduced subsidies to several lines of business. 
•    "Sold excess properties, consolidated space and increased office rentals by leasing two additional floors in our office building.
•    "Pursued outdoor advertising revenue at bridges and PATCO, leased Authority property for cell tower communication networks.
•    "Implemented employee and retiree health care premium contributions.
•    "We kept our bridges safe, secure and serviceable while greatly paring back our capital program for a period of 9 years deferring maintenance projects to alleviate the need for a toll increase for close to a decade.
•    "As a result of these actions, DRPA and PATCO’s actual operating expenses have increased by an annual average of 1.2% over the period 2003 through 2009, excluding debt service and related costs."

COMMENT: So high is Gov Christie's standing with the public there has been hardly a peep of criticism of him for his forceful use of rarely used gubernatorial powers over a normally independent authority. A governor intervening like Christie in the affairs of a nominally independent bistate agency would normally be accused of bullying, demagoguery, and political point-scoring. It would be said he was running roughshod over an agency carefully set up to be free of gubernatorial politics and answerable to the constituents of two states, not just New Jersey.

No one has said anything like this, because they sense the public is completely behind Christie and his forceful action. There hasn't been a squeak out of any of the DRPA board members whose actions he is berating. Acceptance and indeed support for Christie's bulldozer approach may encourage other reform-minded governors to act similarly.

Gov Christie's moves should have an effect, short-term, of curbing abuses, but agencies like DRPA are inherently political, and politics is all about trading favors and directing other people's money to your supporters. Lasting reform requires that the authority be disbanded, and DRPA's assets be made to pay their way and get a return on taxpayer capital, rather than be used to subsidize uneconomic activities.

The four DRPA toll bridges need to be concessioned out to two or more independent investor owned toll operators, so that adjacent bridges are in competition to provide the best value for the toll for motorists. The operators need to be free to vary tolls by time of day to maintain free flow and have the flexibility to innovate.

Christie's statements:

http://www.state.nj.us/governor/news/news/552010/approved/20100902a.html

DRPA: http://www.drpa.org/

TOLLROADSnews 2010-09-02