Hoboken Mayor Dawn Zimmer has got to be the most generous person in Hudson County politics.
This is particularly true when it comes to the sale of Hoboken University Medical Center, which she is practically giving away for free.
She is not doing this alone, of course. She has plenty of help from a lot of powerful friends, and some unwilling assistance from people such as the unions and other unsecured creditors after the hospital declared bankruptcy last week – even as the Hoboken Hospital Authority is on the verge of selling HUMC to private owners.
While everybody knows she has a soft spot in her heart for Republican Gov. Christopher Christie, the hospital deal has shown she has other powerful friends, such as former U.S. Sen. Robert Torricelli, who, as a lobbyist for Hoboken University Hospital as well as for Bayonne Medical Center, is helping to broker the sale.
Even people who are supposedly her political enemies appear to be generous to her. Assemblyman Ruben Ramos kindly included $11 million in this year’s state budget to help pay off the interest on $52 million in bonds that the City of Hoboken took out to underwrite the operations of the former St. Mary Hospital in the first place.
Family members connected with the new buyer of HUMC each gave Ramos a $2,600 campaign contribution in early June, according to state Election Law Enforcement Commission documents. ELEC paperwork also shows some principals in the sale were also very eager to support a Christie political action committee last year to the tune of about $25,000.
Zimmer’s sale of the hospital may have helped Assemblywoman Joan Quigley, too. Quigley, a long time spokesperson for the hospital, might well be offered a position with the new administration for her generous support of Ramos’ budget addition.
But as deep as the political bag may be from which Zimmer can draw presents, some people won’t be getting anything this year. The hospital employee unions, utility companies, phone companies, and eventually health insurance companies all will be left holding the financial bag as the bankruptcy wipes out all the hospital owes them. Even the city of Hoboken will be left almost $2 million short – although maybe the city’s new rules for parking meters will more than make up for that shortfall, if enough out-of-towners get booted for parking more than four hours anywhere in the city.
Other unsecured creditors, of course, might have been paid out of the $11 million from the state, if not for the bankruptcy. That appropriation is a lucky thing for the Zimmer administration, which can now use the state money to secure a short term $2 million loan to pay operating expenses at the hospital and keep it open until the sale actually takes place.
Zimmer’s attempt to play Santa Claus for so many prominent people may be undone if a rumored class action lawsuit by some unsecured creditors takes place. They could become the Grinch who steal the political patronage Christmas in August, by asking the court to halt the sale of the hospital, saying the purchase is underfunded.
Zimmer needs the sale of the hospital as a trump card if she expects to win reelection in two years. Of course, her generosity will go unappreciated by members of various unions and other people who will probably find coal in their stockings as a result of the bankruptcy. They will likely vote against her.
With Zimmer being so generous, you have to wonder how Ramos – or at least his legislative aide – can be leading an effort to put a proposed change of Hoboken’s election date onto the November ballot as a referendum, in opposition to Zimmer’s wishes. The City Council, controlled by supporters of Zimmer – whom Ramos may challenge for mayor – passed an ordinance last month to change the election from May to November, giving Zimmer and her council seven additional months in office, and allowing them to run for reelection at the same time that their ally, Gov. Christie, would run.
Was it a bad deal to save the economy?
The old saying, “When handed lemons make lemonade” has left a lot of local political people with a sour taste in their mouth. The national Tea Party has forced Democrats to drink a whole barrel of unsweetened lemonade. The most Democrats can say is, “It could have been worse.”
In 2001, when President George W. Bush decided to cut taxes to the wealthy, it might have seemed like a good idea. But after two wars, increased spending on homeland security, and the bottom falling out of the real estate market, the deal turned very sour, just in time for President Barack Obama.
By slashing taxes without making corresponding budget cuts, the Bush administration basically pushed the government into a choice between paying its debts or providing a social safety net for less fortunate Americans.
Obama and the Democratic Congress had a chance to do away with the Bush tax cuts two years ago, but were so bent on seeking cooperation with the GOP and conservative Democrats that they failed to see the train wreck coming until it hit them in the face last week, forcing them to vote on what they believe is a bad deal for ordinary people.
Local legislators such as Rep. Steve Rothman held their noses and voted for what they say amounted to political blackmail. Rothman says the GOP held the nation hostage, threatening catastrophic default and endangering programs critical to the elderly, poor, and middle class, while at the same time refusing to close tax loopholes on bloated corporations.
Rep. Albio Sires had a slightly more optimistic opinion of the legislation passed by both houses of Congress.
“While this plan is not perfect, it is necessary in order to remove the cloud of uncertainty over our economy at this critical time,” Sires said.
Sires held out hope that this will lead to better cooperation between Democrats and Republicans, something that may not be possible if the Tea Party continues to intimidate GOP legislators.
Republican Assembly candidate Daniel Beckelman, who is running in the 31st District, believes that the vote for a bipartisan debt ceiling compromise was the best that could be done in a time of divided government and continuing weak economy.
“No one was happy to vote for this bill, but we were at the 59th minute of the 11th hour,” he said. “Default was not a real option, nor was suspending 40 percent of the federal budget instantaneously.”
Beckelman said the country couldn’t afford tax increases, and the budget had to be cut instead. He said local legislators need to hold federal officials more accountable in making sure that federal programs are run more efficiently.