Richard Merkt

PENNACCHIO AND MERKT: CORZINE BUDGET
ANOTHER REASON TO PASS INITIATIVE AND REFERENDUM LEGISLATION
PROPOSED BUDGET CALLS FOR ANOTHER STATE SPENDING HIKE

Assemblyman Joe Pennacchio and Assemblyman Richard Merkt said today that Governor Jon Corzine's proposed Fiscal Year 2008 budget which calls for more than $2.5 billion in additional state spending is yet another reason to place referendums regarding state fiscal issues on the November ballot.

MERKT: "WHAT DID SENATE PRESIDENT CODEY KNOW,
AND WHEN DID HE KNOW IT?"

SOMEBODY HAD TO KNOW ABOUT SLUSH FUND GRANTS

Reacting to Senate President Dick Codey's highly publicized call for reforming last-minute special appropriations added to the state budget, Assemblyman Richard A. Merkt (R. - Morris) today commented that Codey's proposals would have more credibility, were it not for the current doubts swirling around how state grants got made to recipients who employ senators or their spouses or who are clients of senators.

"I find it difficult to believe that no one in the Senate knew anything about these slush fund grants," declared Merkt, adding, "The whole story is just plain 'Alice in Wonderland.'"

Merkt noted that Senators Bryant, Turner, Scutari, Kenny, and Conigilio all have links to grant recipients, yet most claim to have played no role in the grants.

"Here we have a group of senators who work for or have other connections with grant recipients, but most supposedly made no request for the grants," said Merkt, asking, "If they did not steer state grant money to such employers or clients, then who did?"

Merkt stated that Senate President Codey owes the public an explanation about how the slush fund grant process works, particularly where senators have financial connections to recipients.

"It certainly seems curious to me that tens of millions of taxpayer dollars somehow get handed out in state grants to politically connected beneficiaries," observed Merkt, "and no one in the Senate -- from the senators themselves to Senate President Codey himself -- has any idea how it happened. It's just unreal!"

To get to the bottom of the story, Merkt suggested that all state documents relating to how grants get awarded be made public immediately, so the people can see exactly how their tax dollars get doled out from budget slush funds.

"The days of secret deals that, directly or indirectly, benefit legislators should be over in New Jersey," asserted Merkt. "It's time to shine a very public light on exactly how these grants get made, especially when legislators have a financial interest in what happens."

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GREGG, CARROLL AND MERKT TO DEMOCRATS:
"STOP BLOCKING FEDERAL INVESTIGATION!"

URGE SENATE PRESIDENT AND ASSEMBLY SPEAKER TO ORDER OLS COMPLIANCE WITH UNITED STATES ATTORNEY'S SUBPOENA

OFFER TO WAIVE ANY CLAIM OF ATTORNEY - CLIENT PRIVILEGE

In the wake of published news reports that the Legislature's Office of Legislative Services has declined to comply with a subpoena served on it by United State Attorney Christopher Christie, Assemblymen Guy R. Gregg, Michael P. Carroll, and Richard A. Merkt today called on Senate President Dick Codey and Assembly Speaker Joseph Roberts to order OLS to cooperate with the ongoing federal criminal investigation by producing all documents subpoenaed by the US Attorney. In addition, all three lawmakers voluntarily waived any claim of attorney-client privilege asserted by OLS, pledged full cooperation with the federal investigation, and urged every member of the New Jersey Legislature to do the same.

The subpoena served by the US Attorney reportedly relates to a criminal investigation into whether certain legislators used their political influence to benefit themselves, their families, or associates during the state budgeting process. Members of the Legislature have employed a variety of techniques over the years to place special appropriations into the budget, ostensibly to benefit their home districts. More recently, news reports have uncovered a number of instances in which the special appropriations appear to have benefited Members or those close to them.

"It is intolerable that anyone who works for the Legislature would stonewall a federal criminal investigation," declared Gregg (R - Sussex, Morris, Hunterdon). "The minimum acceptable standard of conduct for New Jersey legislators and their employees must be full cooperation with and disclosure to investigators."

Carroll (R. - Morris) pointed out that OLS retained a criminal defense attorney at substantial taxpayer expense to resist the US Attorney's subpoena, saying this implies that the Legislature has something to hide.

"The idea that OLS has hired a criminal defense attorney to defy a lawful subpoena in a criminal investigation has troubling implications," commented Carroll, adding, "The assertion of a claimed privilege to shield disclosure possible criminal wrong-doing is simply not permissible in elected officials."

Merkt (R. - Morris) observed that, even if the Senate President and Assembly Speaker decline to order OLS to comply with the subpoena, the Members of the Legislature themselves can deprive OLS of any claim of privilege by unanimously waiving the privilege.

"Guy Gregg, Mike Carroll, and I have just waived any claim of attorney-client privilege that OLS might assert on our behalf, because we believe that full and immediate compliance with the federal subpoena is indispensable to the Legislature's credibility with the public," explained Merkt, who added, "We urge all of our colleagues to do the same and waive the privilege. Let the documents be produced and the chips fall where they may. No more cover-ups!"

A copy of the legislators' joint letter to Speaker Roberts is attached.

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February 12, 2007

Hon. Joseph Roberts
Speaker, New Jersey General Assembly
State House
Trenton, New Jersey
08625

Re: US Attorney Investigation

Dear Mr. Speaker:

The weekend newspapers brought word of a subpoena issued to the Office of Legislative Services by the United States Attorney, which subpoena seeks information respecting Members' activities during the budget process. Apparently, the US Attorney possesses sufficient information to lead him to conclude that some Members may have employed the budget process to improperly benefit themselves, their families, or their friends.

While we have every confidence that these suspicions will prove completely without basis, it troubles us deeply that OLS retained a criminal defense attorney - at substantial taxpayer expense - and resisted the subpoena, necessitating a determination by the United States District Court. We respectfully aver that this sends precisely the wrong message to an electorate already deeply skeptical of the ethics of its elected representatives.

Faced with credible allegations of improper - perhaps criminal - activities by any Member(s), only complete and unreserved cooperation with such investigation by the Body suffices. We, as Members, ought to set an example for the electorate, not cower behind legal technicalities. If any of us wields the influence of our office for improper personal gain, we should not be permitted to employ OLS's status as "our attorney" to shield us from a criminal inquiry.

We respectfully request, then, that you forthwith direct OLS to fully and completely cooperate with the investigation undertaken by the United States Attorney. We hereby waive any and all claims of privilege relating to any communication between OLS and us and urge that you, and every other Member, do the same.

Respectfully,

Guy R. Gregg Michael Patrick Carroll Richard A. Merkt

DeCROCE STATEMENT ON CONSTITUTIONAL PROBLEMS
AFFLICTING DEMOCRAT PROPERTY TAX PLAN

Assembly Republican Leader Alex DeCroce made the following remarks at a news conference today regarding constitutional problems with the property tax relief plan, A-1, approved by the Assembly last night:

DeCROCE, MERKT AND KARROW: PROPERTY TAX BILL IS UNCONSTITUTIONAL DISCRIMINATION AGAINST HOMEOWNERS

CODEY AND CORZINE URGED TO FIX FLAWS BEFORE PASSAGE

21 ASSEMBLY GOP LAWMAKERS SIGN ON AS
CO-SPONSORS OF INITIATIVE AND REFERENDUM LEGISLATION
MERKT AND PENNACCHIO PRIME SPONSORS OF ACR-226

Calling the handling of the state's finances a dismal Democrat failure, Assemblymen Richard Merkt and Joe Pennacchio today announced that 21 of their fellow Assembly Republican legislators have signed on as co-sponsors of Initiative and Referendum (I and R) legislation the two lawmakers recently introduced.