McHOSE ASKS ATTORNEY GENERAL TO PROBE
CAMDEN REVITALIZATON BOND SALE
CITY OFFICIALS ASK STATE FOR MORE LONG-TERM FUNDING

As the chief operating officer of Camden's multi-million dollar revitalization project today petitioned the state for additional long-term funding, Assemblywoman Alison Littell McHose sent a letter to the state Attorney General requesting his office investigate potential criminal activity associated with the issuance of more than $181,000,000 in state bonding in support of the project."This was one of the most costly bond issuances in the state, but it appears bonds were sold without bid or competitive auction while underwriters received higher pay rates than every other bond issuance for the past several years," said McHose. "It's possible that these transactions may have crossed the line of simple patronage into the realm of criminal behavior."

The Assembly Housing and Local Government Committee and Senate Community and Urban Affairs Committee met today to hear a progress report on the Camden revitalization project. During the hearing, Randy Primas, who recently resigned as COO, said that while the original funding provided was for "bricks and mortar" projects, much more is needed for "quality of life" improvements. He said he expects the city's rehabilitation to take at least another 20 years and asked committee members for continued state funding.

McHose, an Assembly Housing and Local Government Committee member, said that before the committee considers issuing additional bonds for Camden's recovery, the matter needs to be investigated.

On April 2003, $181,005,000 of Municipal Recovery Bonds were issued to support Camden's rehabilitation and economic recovery project by the New Jersey Economic Development Authority. Following review of the transaction, McHose said several participating underwriters received a $45,000 fee even though they were not allocated any bonds. It is also unclear what work they performed for their payment.

McHose, R-Sussex, Morris and Hunterdon, said she that in general, she opposes providing additional aid for the project as it is nothing more than "a special bailout funded by state taxpayers – funding that has not been made available to any other municipality."

In addition to the $181,000,000 in state bonds, she noted that from Fiscal Year 1998 through Fiscal Year 2007, Camden has received $3 billion in state aid, not including funds for other special projects such as Green Acres projects. She questioned where all those billions of dollars have gone since the city of Camden has very little to show for it.

"Even with this incredible amount of funding, the progress report recommends that even more state aid be appropriated to Camden," McHose said. "I think it's fair to ask when will this end? How much is enough? When will the taxpayers of New Jersey no longer be asked to bail out this city?"

With most municipalities throughout the state facing severe fiscal constraints and with the state of New Jersey on the brink of bankruptcy itself, McHose, a member of the Assembly Budget Committee, said it's incredibly unfair to continue pumping billions of dollars into one city.

"At a time when money for school construction has been exhausted, when our state budget is facing another structural deficit, when property taxes continue to rise and school funding is in short supply, how can we possibly rationalize making Camden the state's favorite son? What do I tell my constituents and our other residents when they ask for funding and are told, 'sorry, the well is dry?'"

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For more information, contact:
Assemblywoman Alison Littell McHose/973-726-0954
Assembly Republican Office/609-292-5339