Asbury Park Press from Asbury Park, New Jersey • Page 9

MONDAY, SEPT. 22, 2003 ASBURY PARK PRESS PAGE At profiting FRon PUBLIC SERVICE HOW MANY N.J. LEGISLATORS EXPLOIT THE SYSTEM 1 iiAin i iiif ii aaaar mtiI mm 4 lacsmaEieis feipip cadi CMifrolsd I v-y Senate co-presidents Richard J. Codey, D-Essex, (left) and John O. Bennett III, R-Monmouth, are two of four leaders In the Senate and Assembly who control much of the campaign cash for legislative races, (press file photos) berland, Gloucester and Salem counties; the 14th District in Middlesex and Mercer counties; and the 38th District in Bergen County.

Those districts were viewed by both parties then and again this year as battlegrounds that could determine control of the Senate and Assembly. "Traditionally, the legislative leadership PACs and the state party PACs in New Jersey finance a good portion of the elections," said A.J. Sabath, who is coordinating the Senate Democrats' campaign. "In other states it might be a little bit different. They have different campaign finance laws." New Jersey lawmakers were operating political action committees as early as the mid-1980s.

But a 1993 law abolished PACs run by incumbents, other than the Senate and Assembly leaders, and put stricter limits on donations that rank-and-file candidates could receive from individuals, business and interest groups. Contributors can give up to $25,000 a year to leadership PACs. That limit was reduced from $37,000 in January 2002. By comparison, the contribution limit for candidate committees is $2,200 per election for each contributor. Senate presidents John O.

Bennett III, R-Monmouth, and Richard J. Codey, D-Essex, run leadership PACs in the evenly divided Senate. Assembly Speaker Albio Sires, D-Hudson, and Minority Leader Paul Di- the job longer than four years. DiFrancesco served as acting governor for nearly a year after then-Gov. Christie Whitman resigned in January 2001 to become administrator of the U.S.

Environmental Protection Agency. She has since left that post. "It certainly does make four people extraordinarily powerful if they've got a million bucks in a leadership PAC," Rebovich said. "After the election, if a legislator gets $30,000 or $40,000, which is a large amount but not unheard of, it makes (the leaders) superstars." Also, an increasing share of the money leadership PACs raise comes from other candidate committees. In particular rank-and-file members of a legislative caucus are expected to give money to the leadership PAC to strengthen the party's hand in upcoming elections.

From January 2002 to March 2003, other candidates, county parties and ideological PACs operated by political figures, such as former Sen. John Lynch, D-Middlesex, accounted for 28 percent of the money raised by leadership PACs, or $1.5 million. In 1997, according to the Election Law Enforcement Commission, the comparable figure to today's 28 percent was just 7 percent. Lilo H. Stainton of the Gannett State Bureau contributed to this story.

from individuals, which raises the perception that the businesses and interest groups that supply the rest are buying access to the leaders who set the legislative agenda. "A textbook analysis, and the legislators themselves resist this, is that the public's concern is: 'My goodness, will my lawmaker be more responsive to district concerns, or will he vote with the caucus because the leader ponied up in the last said David Rebo-vich, a Rider University political science professor. The PACs have another purpose: allowing legislative leaders to retain their titles and power. Often, incumbents in safe election districts, who are practically assured of victory in November, contribute to candidates in their party in other districts because they have an eye on moving up the leadership ladder and hope to get their colleagues' votes. But it's hard for rank-and-file lawmakers to spend enough money to sway colleagues to replace their incumbent leader, since those running the leadership PACs have an unlimited checkbook, while they can give just $2,200 each for the primary and general election.

Political analysts say that concentration of financial power contributed to the long tenures in the 1990s of the legislative leaders in particular Republican Senate President Donald DiFrancesco, R-Union, who broke tradition and held "STEVE" J. CORODEMUS in 12-year Assembly career v. Gaetano, R-Essex, operate PACs in the Assembly. The leaders, in turn, are allowed to give unlimited amounts of money to other candidates. They can even give to their own accounts; in 2001, Co-dey's leadership PAC gave $40,000 to his joint campaign fund.

Bennett might be compelled to do the same this year, as Democrats plan to target his 12th District seat in their efforts to gain a legislative majority. Those two factors combined have generated a system in which, four years ago, leadership PACs were legislative candidates' top source of money, accounting for $1 in every $4 raised statewide. Leadership PACs had more than $5.2 million in the bank at the end of June after raising $9.5 million in the last 18 months. That's nearly half the Few conflicts By RICHARD QUINN STAFF WRITER Assemblyman Steven J. Co-rodemus, R-Monmouth, turned away government work this year.

A partner in his father's law firm, he resigned earlier this year as Matawan's labor attorney after he helped settle a contentious negotiation between the borough and the police union. Corodemus said he resigned because he didn't have enough time to devote to the job, but Matawan Mayor Robert D. Clifton said the departure came to avoid any appearance of a conflict. If the contract dispute went before a state arbitration commission, Corodemus could have been in the awkward position in the Legislature of voting on the commission's decision, Clifton said. "It's not glamorous work (doing municipal law)," said Corodemus, of Atlantic Highlands.

"It's a lot of nights, a lot of meetings. And it doesn't pay enough." Corodemus was paid $6,333 by the borough since Jan. 1, 2002, according to borough payroll records. He submitted a letter to Gannett New Jersey outlining his financial interests. He earns more than $75,000 a year as a lawyer and is owner of a nonactive Metuchen business, Acropolis Imports Inc.

He ptJ I By MICHAEL SYMONS GANNETT STATE BUREAU TRENTON When it comes tq campaign cash for legislative races, just four people the Democratic and Republican leaders in the state Senate and Assembly control a large part of the pie. This is actually by design of the lawmakers. Ten years ago, legislators gave their leaders extraordinary sway over party funds, including much higher fund-raising caps and limitless spending authority, in part to help ensure incumbents' re-election. But as a result, incumbents in tight races who need leadership cash are reluctant to buck the party's wishes when it comes to voting for favored legislation. And special interests that want to block changes can donate up to $25,000 a year to the very leaders who decide which bills get posted for votes and which languish.

Some reformers now say that legislative leadership political action committees, or leadership PACs, may need tweaking of their own. "Experience has shown that maybe we've gone too far, and maybe we ought to draw back a little and limit (contributions)," said Sen. Peter A. In-verso, R-Mercer. Consider this: In 2001, when the leadership PACs spent $7.5 million on legislative campaigns, nearly $4 million flowed into three districts: the 3rd District in Cum SEN.

JOSEPH Senator shuns in 22 years in By RICHARD QUINN STAFF WRITER Sen. Joseph A. Palaia has avoided controversy during his two decades in the Legislature. He lives in a one-story home in Ocean Township assessed at $225,200, according to tax records. He sold his share of two Monmouth County restaurants in the years after becoming a state senator in 1989.

His only business interest is a 10 percent stake in a racehorse named after him Senator Joe P. stabled at Monmouth Park in Oceanport, according to a financial disclosure statement he filled out for Gannett New Jersey. He said his interest in the horse is valued between $3,000 and $15,000. Palaia, the Senate's oldest member at 76, said he prefers to make news for his bills that become law: mandatory trigger locks on handguns and carbon monoxide detectors in new homes. Palaia earns $49,000 a year as a legislator and $29,120 from his teacher's pension.

Two children have followed him into public service: Daughter Denise Palaia, 46, has worked as an elementary school teacher in Ocean Township for more than 16 years, at a salary this year of according to district records. Joseph J. Palaia, the senator's only son, has worked for state government on and off since 1989, when he started as an inspector for the state Racing Commission at a salary of $27,240 a year. He now works as a supervising investigator for the Department of Law and Public Safety at $78,240 a year, according to Department of Personnel records. Palaia said he had no hand in getting either of his children public-sector jobs.

a a "I financial punch of the nearly 296 legislative candidates combined, who raised $21.5 million and had $11.1 million on hand, according to records on file at the Election Law Enforcement Commission. Some people are worried the system concentrates too much power in too few hands. A treasurer and chairman help manage the leadership PACs, but decisions over its money are ultimately made by the legislative leader. "At least maybe have a leadership that includes more than one person," Inverso said. "If each of the respective caucuses Republican and Democrat have a leadership group in the maybe that group ought to be responsible for the leadership PAC." Just 12 percent of the money raised by leadership PACs in the current election cycle is ASSEMBLYMAN STEVEN for lawmaker and his wife live in a home assessed at $325,000.

His legislative salary is $49,000 a year. His law firm does not represent businesses that lobby for or against legislation, and 90 percent of the firm's activity deals with residential real estate law and small businesses, he said. "The firm does not represent large corporations, developers, unions, Corodemus wrote. "My 'part-time' position as a legislator detracts from my practice and earning ability as ASSEMBLYMAN law firm of Carton Faccone once in office. One of the firm's partners, Malcolm V.

Carton, is Monmouth County's counsel. He said he opted to become a lobbyist because "it's a natural way to stay in the (political) game. If you go off and practice law, you get disconnected. If a lawyer." Corodemus has had few conflicts during his 10 years in statewide office. He drew public criticism in 1994 for his relationship with conservative New York City radio talk-show host Bob Grant, who stirred up controversy by likening former New York City Mayor David Dinkins to a "men's room attendant" and describing minorities as "savages." Grant later backed off his comments, and Corodemus canceled a fund-raiser where Grant was to be the featured speaker.

Two years later, Corodemus ran for Congress but lost to Frank Pallone. The next year, he kept his Assembly seat with a plurality. Corodemus now sits on the powerful Appropriations Committee, which decides how state funds should be divided up. He is a former chair of the environment and education committees. A Republican in a Democrat-controlled Assembly, Corodemus was able to push through two bills that became laws in the past two years.

One named a state office building in Asbury Park after the late Thomas S. Smith an assemblyman from the city who died last year. The other allowed certain public meetings to be advertised on the Internet. SEAN T. KEAN you lobby, you meet the faces and the players in the legislative process.

Those are the people I wanted to be around." Kean lives in a Wall condominium he bought in 1998 for $164,900, according to property records. He has two mortgages on the home, one is in excess of $75,000, and the second is be i New lawmaker's stint as lobbyist kept him in the loop A. PALAIA controversy Statehouse The senator said he has been full-time lawmaker since he retired as a principal in 1983. The time not spent at a job allows him to meet more constituents, he said. "You can do political things, and they're fine and nice," Palaia said.

"But when you're sitting face-to-face with people, you really get the feel of the things that bother them." Palaia's Democratic opponent this fall is Paul X. Escan-don, 39, a Loch Arbour trustee and lawyer. He did not fill out Gannett's financial disclosure survey. Escandon admits there is little controversial about Palaia. "I really can't knock the guy, but I like to think I can provide fresh outlook on things," Escandon said, adding he would emphasize oceanfront protection and quality of life issues.

think I'm in tune with the issues, and I think I can make a difference. "You can get things done (without committee chairmanships or party leadership positions)," Corodemus said. "Personally I haven't had a problem. The bills I've introduced were not partisan bills." Asbury Park Councilman John Loffredo, a real estate agent, and Eatontown Councilman Charles "Chuck" Davis, a former police sergeant, are challenging Corodemus and GOP Assemblyman Sean T. Kean in November.

Neither Democrat filled out the Gannett financial disclosure survey. tween $30,000 and $75,000, according to a financial disclosure survey he filled out for Gannett New Jersey. Other than two 401(k) retirement plans, he noted no other major assets, according to the survey. As a freshman lawmaker with the minority party, Kean has sponsored 69 bills, including some that would help local projects, such as the dredging of Black Creek and Wreck Pond, located in Sea Girt, Spring Lake and Spring Lake Heights. Only one, a bill requiring carbon-monoxide detectors in new homes or during a change in occupancy, has been signed into law.

Kean and his running mate, Assemblyman Steven J. Corodemus, will face Democrats Charles "Chuck" Davis, an Eatontown councilman, and John Loffredo, an Asbury Park councilman, in the November election. Neither Democrat filled out the Gannett financial interest survey. By JASON METHOD STAFF WRITER Sean T. Kean's career came full circle last year.

A former legislative aide to state Sen. John O. Bennett III, R-Monmouth, Kean left that job in 1996 to become a lobbyist. Now he is back in Trenton, this time as an assemblyman appointed to a vacant seat last year by Monmouth County Republicans. Kean had been a lobbyist with the firm now known as Holt, Mulroy and Germann of Trenton from February to November 2002, when he joined the Assembly.

Before that, he worked for the state's top-grossing lobbying firm, Hodes Shaw Bodman Gluck, Trenton, which earned $6.4 million in 2002. He worked for Bennett, now the state Senate's co-president, from 1994 to 19. Because state ethics rules forbid lobbyists from working as Kean joined the.