City Council to address campaign finance laws

Legislation will likely be voted on at Wednesday council meeting

The Hoboken City Council is on the verge of establishing a new local campaign finance law, but it’s not sitting well with the council people who are opponents of Mayor Dawn Zimmer.
The issue comes up for a public hearing and final vote at the City Council meeting this Wednesday.
Councilman Peter Cunningham and Councilman Ravinder Bhalla are the sponsors of two ordinances scheduled to appear on the July 20 agenda. The council can only pass one of the ordinances, as they have elements that contradict each other.

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There are similar laws in Atlantic County, Dumont, Middletown, Morristown, Marlboro, and Moorestown.
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One ordinance would limit all contributions to candidates from any sort of committee (political action committees continuing political committees, etc.) to $500, down from the current state-enforced $8,200 limit.
A second ordinance on the agenda would permit only Hoboken-based committees to donate more than $500, and would limit even Hoboken PACs that are self-funded by 75 percent or more to a $500 limit.
Council members have said that the laws were inspired in part by the donations in an election last November that helped get a mayoral opponent elected to the council.
Bhalla said last week he was not sure which proposal he will support, and will wait until he hears from the public and discusses the issue with his council colleagues.
The issue of self-funded PACs took center stage in the November 2010 special election. Councilwoman Beth Mason donated the individual limit of $2,600 to Councilman Tim Occhipinti, an opponent of Mayor Dawn Zimmer and her allies. What irked them was that Mason also donated $8,200 from her largely self-funded PAC.
Occhipinti won the election, beating a Zimmer ally.
Mason’s actions were legal, but Bhalla believes the donation was only possible because of a loophole.

Debate over legality

Mason said last week she had attorneys review the legislation. She said they told her that the ordinances are not legal because they undermine the state’s election laws, and they are unconstitutional because of the role of money as a form of free speech. The city’s guidelines would be stricter than those of the state.
“The legislation is very narrow and it’s targeting individuals like myself,” Mason said. “That becomes a free speech issue.”
A city spokesperson said the city’s legal department had reviewed the original legislation when it was first introduced in February, and found that the ordinance was “modeled on other municipal, county, and state legislation in New Jersey, none of which have been found to be unconstitutional.”
However, the legal department had not reviewed the new legislation that was introduced at the July 1 meeting as of press time, according to a spokesperson.
A similar ordinance was voted down by Zimmer and Cunningham’s council foes in February, when Zimmer’s supporters did not have control of the council.
But now, Zimmer’s supporters have 5-4 control of the council. Bhalla is the council president.
When the legislation was first introduced in February, Assemblyman Ruben J. Ramos (D-Hoboken), who is rumored to be a potential candidate for mayor against Zimmer in 2013, asked the Office of Legislative Services (OLS) legal counsel in Trenton to review it. A letter dated March 10, signed by Albert Porroni, legislative counsel, and David Lorette, senior counsel, indicated that the local law would be preempted by state law.
Ramos asked for an analysis of whether a municipal ordinance seeking to limit campaign contributions for local candidates for office would be subject to state preemption.
The attorneys cited “five pertinent questions” by the New Jersey Supreme Court for consideration of whether a municipal law is subject to preemption. The questions mostly ask if the law conflicts with the state law.
“As hereafter discussed, it appears that such a municipal ordinance would likely be preempted,” according to the letter from the OLS attorneys to Ramos, citing an interference with the already established state laws.
Bhalla said last week he disagrees with the opinion of the OLS.
The fifth question asks if the ordinances stand “as an obstacle to the accomplishment and execution of the full purposes and objectives of the legislature.”
Bhalla said he believes the law doesn’t serve as an obstacle because the municipal ordinances tighten the laws made at the state level.
“The anti-wheeling ordinances that we’re proposing actually advance the objections of the [state laws],” Bhalla said.
There are similar laws in Atlantic County, Dumont, Middletown, Morristown, Marlboro, and Moorestown. None of the laws have been overturned by a challenge, Bhalla said. One challenge was settled outside of court, according to multiple sources.
Councilman David Mello agreed with Bhalla, adding that he disagreed with the opinion from the OLS after reviewing the documents.
Alice Crozier, a member of the citizen activist group People for Open Government (POG), submitted suggestions to the council in a memo on April 29, saying that POG hoped to help in the crafting of the legislation.
However, she said last week that she hasn’t heard back since the memo was sent.
Crozier said she is worried that if someone challenges the law, it will face an uphill battle in court, costing the city money in legal fees.
Mason was a founder of POG, but the organization has also had prominent members who are allies of Zimmer.
Ray Smith may be reached at RSmith@hudsonreporter.com

SIDEBAR

Council keeps $5M surplus; taxpayers to see 8.6 percent tax decrease from 2010

The allies of Mayor Dawn Zimmer on the City Council voted on Wednesday night to keep a 5 percent budget surplus, approximately $5 million of the $106 million city budget, which they say will improve the city’s bond rating and still keep a savings in case of emergencies.
The budget will also include an 8.6 percent tax decrease from 2010, the administration said.
Zimmer has said that if the council did not vote to keep a surplus, she couldn’t guarantee that there would not be layoffs in the future. But her opponents wanted to return the surplus to the taxpayers to provide immediate tax relief.
Councilwoman Theresa Castellano called keeping the surplus “a slap in the face to the taxpayers.”
Councilwoman Beth Mason, the former council president, also voted against the budget that keeps the surplus, saying it was “not a fair budget.” Mason campaigned on returning the surplus to the taxpayers in her May City Council election.
“There is tax relief in this budget,” said Councilman David Mello, a Zimmer ally. “It’s sustainable and repetitive tax relief that we can depend upon.”
Zimmer said on Thursday that the budget will provide “long term, stable tax relief,” adding that “budget gimmicks” won’t help decrease taxes. – RS

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