The Jaffe Briefing - May 16, 2022

TRENTON – State budget officials have unearthed an unexpected $3.7 billion in the current and upcoming fiscal years, as New Jersey’s revenue stream is stronger than ever. But, for those who think the cash will just keep raining, have you recently checked the stock market? Yes, we all know, money can come in frantically, and then vanish the exact same way.  State officials say, over the past two fiscal years, state revenues have skyrocketed because of an “unprecedented surge” in people paying their gross income tax. It all means New Jersey will now bring in $51 billion by the end of June, about $8 billion more than expected at the beginning of the current fiscal year, which began last July. And there’s still the $3 billion in federal coronavirus aid that has yet to be spent.

TRENTON – So, how does New Jersey blow the cash? Do we line the Asbury Park boardwalk in gold? Do we help Rutgers pay for some decent football players? Do we offer free pulls on Atlantic City slots? Of course, New Jersey is famous for blowing wads of money and then borrowing for future generations to deal with. So, we have a golden opportunity here, as New Jersey has more revenue than many medium-sized countries. As we all know these good times won’t last, how about just paying down as much debt as possible and throwing the rest in the state’s rainy-day fund? The cash will be used soon enough, as higher inflation, global insecurity, lingering supply chain issues and other massive headaches are coming. Gas and food prices are a chilling indicator; luckily the state has a healthy buffer (currently.)

BRIEFING BREATHER

The name “Pez” derives from the German word for peppermint, which is “Pfefferminz.”

TRENTON – But as politicians need to be re-elected, it is not exactly sexy to just say we are going to be nice and responsible, keeping all the extra money in an air-tight vault, buried somewhere in the Pinelands. Many families are struggling through all the market instability and want some of this tax money flowing into Trenton. Republicans have their own ideas and even a flashy name: the “Give it Back” initiative, calling for Gov. Phil Murphy to hand $4.5 billion to New Jerseyans in tax rebates. Murphy, too, has a plan for homeowners earning up to $250,000, while renters earning up to $100,000 would get some love too. The governor’s goal is to give back $1,150 to eligible households by 2025. Sure, ok; you gotta help the people, despite the concerns of economists. Expect many more details to come out today and Wednesday, when state lawmakers are updated about the latest cash windfalls.

ATLANTIC CITY – New Jersey’s gaming resort is also considering becoming the state’s weed resort, with a number of proposals filtering to the City Council. NJ.com reports that it is not as simple as one would think, as the nine licensed casinos must follow federal law, which currently outlaws recreational weed.  And those tight restrictions also include Tanger Outlets Atlantic City and the Sheraton, both with owners who have multi-state operations and need to comply with the feds.  But that doesn’t mean Atlantic City can’t allow for retail operations in the streets surrounding the casinos in a further effort to serve gamblers and/or conventioneers. There are some local businesses that sell medical marijuana and are now eager to expand to the masses, with the city’s blessing.  Interesting to see the casinos’ perspective on things, as it remains unclear if stoned people chain-eating 99-cent hotdogs on the Boardwalk bring in any business.

IN OTHER IMPORTANT NEWS

VOGUE, U.K. — No one messes with Vogue magazine, unless you are the owner of the Star Inn in a rural town named Vogue. He received a letter from the humorless Vogue publisher, saying he should change the name of his pub because it could “cause problems.” The silly argument: the public would confuse the international fashion magazine with a small bar in the absolute middle of nowhere. The publisher ended the letter with this: “Please reply within seven days or we will take remedial action.” The pub owner did not back down, arguing that the village, in Cornwall county about 250 miles southwest of London, is considerably older than the magazine, whose British edition was founded in 1916. He further writes: “I presume that at the time when you chose the name Vogue … you didn’t seek permission from the villagers of the real Vogue,” he wrote. “In answer to your question whether we would change our name, it is a categorical NO.” Vogue is now reconsidering the tone of its letter.

THIS DAY IN HISTORY

It was this day in 1988 that Surgeon General C. Everett Koop says that nicotine is as addictive as heroin.

WORD OF THE DAY

Hark Back – [HAHRK-BAK] – verb

Definition: To turn back to an earlier topic or circumstance

Example: A PEZ dispenser harks back to my childhood.

WIT OF THE DAY

“The First Amendment doesn't give anybody the right to be heard. People don't have to listen to you.”

-Rush Limbaugh

BIDEN BLURB

“The First Amendment grants a free press extraordinary protection, but with it comes, as many of you know, a very heavy obligation: to seek the truth as best you can -- not to inflame or entertain, but to illuminate and educate.”

-Joe Biden

WEATHER IN A WORD

Unpredictable