Donovan: state can generate $56 million by collecting sales tax from NFL teams
Kathleen Donovan By Editor | March 25th, 2010 - 12:36pm
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Bergen County Clerk Kathleen Donovan says the state should collect sales tax on a projected $800 million in revenue the Giants and Jets will receive for the sale of Personal Seat Licenses at the new Meadowlands football stadium.  Donovan estimates that sales tax would bring in $56 million in revenue – a plan she says Gov. Christopher Christie take instead of repealing Bergen County Blue Laws.

“New Jersey taxpayers and not billionaire team owners from New York should be the beneficiaries of this windfall,” Donovan wrote in a letter to Christie.  “You have asked all taxpayers, homeowners, teachers, public employees, boards of education, municipalities and others to sacrifice. Shouldn't the Jets and Giants be included? “

Donovan, the Republican candidate for Bergen County Executive, also wants the state Attorney General to file civil actions against EnCap and several public agencies to recover monies that were fraudulently spent or wasted. 

Her suggestions take Christie up on his challenge to Bergen official to identify new revenue sources that would replace the $65 million the governor estimated the Blue Law repeal would generate.

Donovan also wants the state to establish a Taxpayer Hotline so that waste, fraud, abuse and mismanagement can be identified.  “My first act as County Executive will be to establish such a Hotline in Bergen County,” Donovan said.

“Too many elected officials prefer political pandering and stooping to the lowest common denominator rather than working on behalf of their constituents.  Elected officials have many tasks. Grandstanding and political expediency are not among them,” Donovan wrote in a clear slap at her Democratic opponent, Dennis C. McNerney.

Donovan’s letter to Christie:

March 24, 2010

Honorable Chris Christie
Governor, State of New Jersey
State House
125 West State Street
P.O. Box 001
Trenton, NJ  08625

Dear Governor Christie:

As you know, I strongly oppose repeal of Bergen County's Blue Laws. Last week you challenged Bergen legislators to find an alternative to the $65 million in sales tax revenue the New Jersey Retail Merchants Association projects would be collected if Blue Laws are repealed in Bergen County.  As of yet no one has responded with new and or innovative ideas.  Let me attempt to fill that void and offer a number of suggestions.


First, please note my letter of November 13, 2008 (see attached) to then Governor Corzine with copies to north Jersey legislators (including those representing Bergen County) in which I first I suggested and now again propose that the state collect the seven percent sales tax from the New York Giants and New York Jets that should be owed on the initial sale of Personal Seat Licenses by the teams.  The Jets and Giants projected revenue of no less than $800 million from these sales. That will generate one-time revenue of approximately $56 million.  New Jersey taxpayers and not billionaire team owners from New York should be the beneficiaries of this windfall.

You have suggested that all contracts involving the state and its agencies should be reexamined in order to find additional benefits to both close the budget gap and thereby assist New Jersey's overburdened taxpayers.  You have asked all taxpayers, homeowners, teachers, public employees, boards of education, municipalities and others to sacrifice. Shouldn't the Jets and Giants be included?  

I feel strongly that all Sports Authority related contracts (including the lucrative contracts with the Jets and Giants) be re-examined for review and possible changes to insure that the maximum benefit possible is accruing to taxpayers.

Second, I recommend that you authorize and immediately establish an Office of Asset and Revenue Recovery in the Attorney General's Office.  The sole purpose of this office will be to use the civil process to recover the hundreds of millions of dollars already identified as having been wasted, misapplied or fraudulently spent by public agencies including the School Construction Corp., UMDNJ, etc.  In addition, this office should immediately pursue action against entities such as "EnCap" whose activities have already been reviewed by the Inspector General. 

Third, I would urge you to establish a Statewide Taxpayer Hotline both via telephone and on-line so that waste, fraud, abuse and mismanagement can be identified and appropriate action initiated.  My first act as County Executive will be to establish such a Hotline in Bergen County. 

I look forward to working cooperatively with you and your administration to resolve issues through creative and innovative problem solving.  Unfortunately, we have seen in the past week or so that too many elected officials prefer political pandering and stooping to the lowest common denominator rather than working on behalf of their constituents.  Elected officials have many tasks. Grandstanding and political expediency are not among them.

Very truly yours,

Kathleen A. Donovan                                                              

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