Bob Kealy has been a good friend of the movement and a strong supporter of Steve Lonegan and Americans for Prosperity. However, his letter that was today published in the Press of Atlantic City shows that even he was fooled by Ballot Question #1. In his letter titled “Question #1 is a boon to taxpayers”, he should have recognized that something wasn’t right when he observed “we need a new amendment to the constitution to tell us to follow the constitution”. Why would the same politicians who defied our constitution to borrow $37 billion without a vote of the people want to amend the constitution, so they couldn’t do it any more?

(Photo credit – http://3.bp.blogspot.com/_dtY0VOFMWMM/SKjkNBPQR4I/AAAAAAAABAg/y0QTx5Fcors/s400/fraud-751211.gif)
The answer is simple. Ballot Question #1 is a fraud. The Wall Street Boys are nervous because although the state used loopholes to borrow $37 billion without a vote of the people in violation of our State Constitution, none of that debt is guaranteed by the full faith and credit of NJ taxpayers. That debt can be cancelled or repudiated at any time. The purpose of Ballot Question #1 is to allow these same politicians to back the $37 billion already borrowed by “empty shell” entities like the Economic Development Authority with the full faith and credit of the state. This means that if state sales and income taxes are not enough to pay that debt, the State must impose a new statewide property tax to pay it.
Below is an article I published in the Current and Gazette Newspapers of Atlantic and Cape May Counties with explains this fraud in detail. Please read it carefully. I urge each of you to write a brief letter to the Press of Atlantic City and all other daily newspapers that you know of, to explain this fraud before election day. I also urge you to call all local radio talk shows that you know of to give this message before election day. If you have any questions, please contact me, Seth Grossman, at grossman@snip.net. Thanks.
Seth Grossman, Executive Director, www.libertyandprosperity.org,
453 Shore Road, Somers Point, NJ 08244.
Tel. 609-927-7333.
STATE BALLOT QUESTION #1 IS A FRAUD!!! IF YOU DON’T WANT $37 BILLION MORE IN DEBT, AND A NEW, MANDATORY STATE PROPERTY TAX, VOTE NO!!!
“Woe to those who call evil good and good evil, who put darkness for light and light for darkness, who put bitter for sweet and sweet for bitter”. Isaiah (Chapter 5, Verse 20)
The Old Testament prophet Isaiah preached these words in Jerusalem 2,600 years ago. But they describe State Senators Leonard Lance (Republican) and Raymond Lesniak (Democrat) and the others who cooked up State Ballot Question #1 for this November’s election. These politicians claim a “Yes” vote for their proposed “bipartisan” Constitutional Amendment would stop independent authorities like the EDA (Economic Development Authority) from borrowing billions of dollars without voter approval. But the opposite is true.
Earlier this year, Governor Corzine tried to hock our toll roads to pay off $40 billion in state debt. But Corzine never said the state was legally on the hook for only $3 billion. The other $37 billion was created by independent authorities without voter approval. As a result, the state legislature does not legally have to pay roughly $3 billion each year on that debt, and can stop payment at any time. Every bond sold by these authorities clearly stated that this was speculative junk debt, and not guaranteed by New Jersey taxpayers.
We don’t need any Constitutional Amendment to stop state authorities from borrowing money without voter approval again. Wall Street finally learned its lesson, and will never loan a dime to any of these authorities again– unless the debt is backed by the full faith and credit of the State. Under our present Constitution, only the voters can provide that security.
But a “yes” vote on Ballot Question #1 would change all that. It would change the Constitution and allow state politicians to pledge the full faith and credit of the state without voter approval for the first time since 1844. You won’t know that if you just read the Ballot Question, and Interpretive Statement. These ugly details are buried in Senate Concurrent Resolution #39 which created them. Senate Concurrent Resolution #39 states that voter approval will not be needed to guarantee the bonds of any “autonomous public corporate entity” if there is “an independent non-State source of revenue paid by third persons” or “a source of revenue otherwise required to be appropriated pursuant to another provision of this Constitution”. This means billions could be borrowed without voter approval to build stadiums. Any political accountant can project that ticket sales will pay back the loan-even if he has to assume that every game will be sold out at $100 per ticket for the next 30 years. It means billions could be borrowed without voter approval to build dozens of $150 million high schools, complete with state-of-the-art theaters, stadiums, and day-care centers. Any political “educator” can certify that they are needed to provide a “thorough and efficient education” as required by our State Constitution-or qualify under the “Property Tax Relief Fund”. But the most dangerous provision of Ballot Question #1 is this:
“No voter approval shall be required for any such law. . . authorizing the creation of a debt or debts. . . for the refinancing of all or a portion of any outstanding debts or liabilities of. . . an autonomous public corporate entity,”
A “Yes” vote on Ballot Question #1 means Governor Corzine and the State Legislature could pass a simple law to refinance every dollar of the $37 billion borrowed by state authorities without voter approval. If they do that, the state will give up its legal right to reject to refuse to spend taxpayer dollars on such “unconstitutional” debt. Once the full faith and credit of New Jersey is pledged, all state sales tax money earmarked to pay that debt before it is spent on anything else. When its full faith and credit is pledged, the State is legally obligated to impose a new statewide property tax to pay its debts, whenever sales tax revenues are not sufficient. If you don’t believe me, look at the fine print of last year’s Open Space bond legislation. Ballot Question #1 is a fraud, a lie, and a Trojan Horse. The $700 billionbailout showed how politicians ignore the voters to enrich their Wall Street backers. A “Yes” Vote on Ballot Question #1 will not only bail out the Wall Street firms who marketed $37 billion junk debt for NJ authorities. It will also guarantee that this insane borrowing, and the waste and corruption that goes with it, continues.



