Legislators move toward ending Camden Takeover

January 25, 2010  |  Philadelphia Inquirer  |  Link to article

As Dana L. Redd was ceremonially sworn in as Camden's mayor yesterday before an overflow crowd at Rutgers-Camden, her Democratic allies in the state Legislature were moving to end the state takeover of the impoverished city.

Redd, 41, a New Jersey Democratic star who left the state Senate and City Council to run for a largely ceremonial mayoral position, now stands to gain a range of new authority under the proposed amendment to the highly unpopular 2002 state takeover law.

The proposal was approved by an Assembly committee Monday. Supporters hope it will be approved by the Legislature next week, setting the stage for the return of virtually all city control to the mayor's office. The mayor also would have additional, unprecedented powers for a five-year "recovery" period.

The commissioner of the Department of Community Affairs could hand those powers to the mayor by deciding, at any time after the bill is signed into law, to close the office of the gubernatorially appointed chief operating officer.

To help sustain itself, the city also would gain the power to charge non-taxpaying entities, from hospitals to churches to government offices, $100 annually for each employee who works in Camden. The money would be used exclusively for capital improvements. Camden also would be protected from drastic aid cuts for five years.

"I believe, as do many others, that it's time to return local governance to the city of Camden," Assembly Speaker Joseph J. Roberts Jr. (D., Camden) said in an interview.

A sponsor of the original takeover law, he now is sponsoring the bill to hand authority back to the mayor, saying the swearing-in of a new city executive makes this an appropriate time for the change.

Yesterday's inauguration ceremony featured two musical performances and a video tribute to Redd. The standing-room-only crowd faced the stage, where a who's who of political dignitaries sat under a "United For Change" banner: outgoing Gov. Corzine, Philadelphia Mayor Nutter, and the state and city legislators representing Camden.

If state oversight ends, Redd would gain veto power over city agencies and the ability to appoint and fire employees without state approval. Under current law, those powers remain with the COO until at least 2012 and then are transferred to the mayor, according to Assembly Democrats.

In addition, civil-service protections provided to nonunion department heads would be suspended for 18 months, clearing the way for Redd to make sweeping personnel changes in City Hall.

Redd would be able to terminate all existing contracts and agreements and appoint six school board members, compared with three today. The mayor could ultimately have the authority to appoint all nine members, subject to a citywide vote.

Redd could raise taxes - something forbidden during the takeover - but only by an amount sufficient to make up for a loss in state aid.

Such special municipal aid, $56.35 million in 2009, would be frozen for one year and then reduced 3 percent each successive year of the five-year recovery period, protecting Camden against further cuts that could have been implemented by the incoming administration of Gov.-elect Christopher J. Christie.

In one remnant of state control, the DCA commissioner would have veto power over City Council, although two-thirds of the body's members could override that veto. The entire City Council, including the three members sworn in yesterday with Redd, is supported by Redd and the South Jersey Democratic Party.

If the law is passed by Tuesday, before Corzine leaves office, it is expected that Redd would be given the new powers immediately. If not, Christie also has expressed support for returning Camden to local control.

The crowd at the inauguration in the Gordon Theater at Rutgers-Camden yesterday seemed to support a return to local control in Camden, the site of the biggest municipal takeover in U.S. history.

Nutter, one of several political dignitaries who spoke, called for an end to the takeover, saying that although he didn't want to get involved in New Jersey affairs, "any mayor needs the full power and authority and financial [control] to really get the job done."

When his remarks were interrupted by applause, he said: "I think I heard Mayor Redd clap on that one."

Senate Majority Leader Stephen Sweeney (D., Gloucester) echoed Nutter's comments, saying: "We've got to get legislation done to let the mayor be the mayor."

But the legislation has yet to be seen or analyzed by the people of Camden, civic activists said.

Rosa Ramirez, a member of the state Economic Recovery Board, which oversaw the distribution of $175 million in recovery money, is also a leader of Camden Churches Organized for People, which has lobbied for improvements to the law. She said she did not know the amendment existed until asked by a reporter at Redd's swearing-in.

"It says to me, 'Here we are again' - decisions are being made without discussion or input from the citizens of Camden," Ramirez said. "I get upset when they make these moves and don't discuss them with no one."

The amendment was introduced Monday by Roberts and Assemblyman Louis Greenwald (D., Camden). It was approved 8-3 by the Assembly Appropriations Committee and now goes on to the full Assembly.

In an interview Monday, Senate President Richard J. Codey (D., Essex) questioned some of the authority that would be given to the new mayor, particularly the power to temporarily override civil-service rules meant to protect career employees from political interference. Codey did not respond to a request for comment yesterday.

The bill was one of 46 on the Assembly Appropriations Committee's agenda Monday.

Assemblywoman Dawn Marie Addiego (R., Burlington), one of three lawmakers who voted against the amendment, said she got a copy of the bill just minutes before the vote even though it was "a significant amendment that had far-reaching consequences."

"To ask us to vote on that, especially in light of the continued abuses that have been found in Camden, to turn the checkbook over to them without having properly reviewed the legislation is unconscionable," she said.

Roberts said he had been discussing giving authority back to Camden's mayor since the summer. While details of the bill became public only late yesterday, he said he would ensure a full discussion of the issue.

The most unique and potentially controversial element of the bill is a $100-per-employee fee that nonprofit entities would pay, bringing in $500,000 alone from the city's biggest employer, Cooper University Hospital.

In November, an Inquirer investigation into the state takeover found that New Jersey's intervention had failed to improve the city, particularly its crumbling infrastructure, such as roads and sewers. And it linked part of the city's growing fiscal problems to the proliferation of nontaxable entities. Most properties in Camden are not taxed.

Redd, who actually took office Friday, stood for the swearing-in with a Bible on the lap of her wheelchair-bound grandmother, who raised her after her parents were killed when she was 8.

In her inaugural address, Redd said she wanted to clear debris from the streets, attract middle-class residents, train the local workforce, give teenagers a "viable alternative" to hanging out on corners, and make sure visitors to City Hall were "treated with the human dignity they deserve."

She ended up by asking, with enthusiasm: "Camden, are you with me? I said, Camden, are you with me?"

To cheers of "yeah!," she said: "I will see you in the streets of Camden for a better day."

A New Day for Camden

After years of having little power, Camden's mayor would gain sweeping new authority under a proposal that sets the stage to strip away almost all state control of the city. Among the highlights of the proposed law:

Ending rehabilitation, starting recovery

The state Department of Community Affairs could at any time end the "rehabilitation term" in Camden and therefore remove much of the state oversight. Once the "rehabilitation term" is ended, the mayor would gain broad new powers.

Mayor could veto, fire, end contracts

The mayor would take over extraordinary powers that have been held by the chief operating officer overseeing the city. The mayor could veto actions of any independent board or authority. The mayor would receive such power in 2012, at the earliest, under the current law. The mayor would have the authority for five years.

For 18 months, the mayor could fire civil-service employees not covered by collective bargaining. The mayor, like the COO, also could void all city contracts with 30 days' notice, except for collective-bargaining agreements.

Taxes, state aid

All nonprofit entities - including churches, colleges, schools, the county, and the state - would pay Camden a fee of $100 per full-time employee who works on tax-exempt property.

The city could raise taxes to cover any loss of state aid. Taxes had been frozen at 2002 levels.

Continued oversight

The commissioner of the Department of Community Affairs could veto actions by the city, but the City Council would gain the power to override the veto with a two-thirds vote.

The state Department of Community Affairs would retain the authority to audit the city and report its findings to the Local Finance Board.

Schools

The mayor could name all six of the appointed members of the school board, up from three. The board currently has nine members, with three appointed by the mayor, three by the governor, and three elected.