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When ideology meets reality

by: Thurman Hart

Fri Feb 12, 2010 at 06:13:04 PM EST



Thanks, Thurman. Promoted from the diaries by Rosi

By now, nearly all of New Jersey is abuzz concerning Governor Christie's decision to unilaterally freeze state spending.  While the war of rhetoric is well underway, the reality of the situation has yet to be determined.  Of prime importance in this tug-of-war is the question as to whether or not the New Jersey Governor has the power to do what Christie has proposed.

The general power we are considering is referred to as "executive impoundment" or simply "impoundment."  It's one of those tricky things you won't find mentioned in the Constitution anywhere.  At the federal level, however, Article II vests the President with all executive power - the power to carry out laws, including spending governmental funds.  Based on that premise, the President can therefore choose not to spend all of the money appropriated by Congress.  

Thurman Hart :: When ideology meets reality
In part, this is a necessity.  Imagine how difficult it would be to function if the President had to make sure every last penny appropriated by Congress were spent.  Imagine nameless bureaucrats running out to buy cartons of paperclips at the last minute to make sure they met their obligation to spend every last cent appropriated.  But that view of the power sees the Executive as having some fractional part of the appropriation after carrying out the intention of the spending.

It also allows for greater efficiency.  Suppose the legislature estimates that we will need fifty thousand tons of salt and the going rate for salt will be $100 per ton - but the actual price is $40 per ton.  Does the Executive keep buying salt because there is money left or do they get the fifty thousand tons and save the rest?  

But what Gov. Christie is doing is claiming that he can unilaterally change governmental policy simply by refusing to spend funds.  It is based on the concept of the unitary executive.  It means that the Executive has complete control of the bureaucracy, including the prerogative to simply not spend money deliberately set aside for a purpose with which the Governor disagrees.  

I this, Adam might be closer to the truth than he thinks.  Nixon didn't use the power of impoundment as described above.  He used it to control budget expenditures and to control governmental policy (sound familiar?).  Nixon tried to trim roughly 20 percent of controllable expenditures simply by refusing to spend the money.  Then he began refusing to spend money on policies he didn't like.  

First, there was the Congressional Budget and Impoundment Control Act of 1974.  This stated that the President must submit a request to Congress to rescind a funding provision if he does not want the money spent for that cause.  If Congress does not approve the request within 45 days; then it is refused automatically and the President must release the funds.  

Second, it resulted in Train v. City of New York.  The short version of this case was that Nixon didn't want to spend $6 billion in grants to states for water pollution control and abatement.  SCOTUS, however, stated that the President could disagree with the allotment before he signed the bill, but once signed, he was obligated to spend it.

This led, ultimately, to the passage of the 1995 Legislative Line Item Veto Act.  This did not actually let the President alter a bill before him, as the name would imply.  But it did let the President refuse to spend any line of appropriation.  All he had to do was notify Congress and the rescission would go into effect in 30 days, unless Congress acted to the contrary.  However, the President could veto the Congressional action, subject to normal veto override.  

This led directly to Clinton v. City of New York, in which the SCOTUS declared the Act invalid because it violated the Presentment Clause because it did not follow the procedure outlined by the Constitution for the enactment of a statute.  Justice Kennedy further argued that the Act violated the separation of powers and threatened individual liberty by giving the President unparalleled powers to help or hurt specific groups of taxpayers.  

While this is informative, it may not apply directly to the New Jersey Governor.  After all, the NJ Governor does have some ability to alter lines of appropriations bills that sit before him.  However, that power is given to the Governor before he signs the bill, and it requires that the state legislature vote on the changes.  Once a bill is signed into law, it is just that...a law.  And not even the Governor is above the law of the state.

I have to add here that I am no expert in New Jersey law, and if any state precedent has been set; then it would control the proceedings that are sure to follow.  But Christie, as Executive, can order his underlings not to disburse the funds.  They will obey, and numerous lawsuits will result.  These will likely be combined, or held until whichever goes first is decided.  If I read the current composition of the Court rightly, I think they will ultimately rule against Christie and order him to release the funds.  However...

It is possible that the legal proceedings will trod along until after the end of the fiscal year.  In which case, the result will be moot as the money will not have been spent in the year appropriated.  The Court would then be free to issue a toothless verdict, telling the Governor that he shouldn't have done that, but leaving the injured parties with no way to get their money back in time when they needed it.  

In the meantime, everyone is going to have to deal with the cuts that Christie is making.  As I often tell my students, government can do whatever it wants, until the Court tells them they have to stop.  Even then, it can be dicey if the government is really intent on doing something.  As my role model, Mel Brooks, used to say, "It's good to be the King."

Presumably, it's good to be the Governor, too.

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I have to say (0.00 / 0)
I read the statute Christie cites and it is talking about not spending money in the case of "extravagence" "waste" and "fraud." It's good thing I'm not a judge (or even a lawyer) because I wouldn't buy a bit of this executive order.  

Frank LoBiondo Record and Jon Runyan Watch

Favorite Kean quote: (0.00 / 0)
"But, more to the point, reductions in state aid result in the opportunities for municipalities to revisit their funding priorities."

Of course, if Corzine had said something like this, the Republicans would all be screaming about how it would OBVIOUSLY result in a tax hike at the local level.

And they'd be right, because it always does.

But now in ChristieToddChristieWorld©, it's an "opportunity".

To "revisit priorities."

How utopian.

As scarce as truth is, the supply has always been in excess of the demand.


An Action Plan (0.00 / 0)

David Rosen, Budget Director, OLS,  says it's "not unreasonable" to assume the state will be more than $1 billion in the red as of June 30. Josh Zeitz, former Corzine aide, says the shortfall is $739 million or up to $1,039 billion, and "Adam L a/k/a clammy c" thinks $340 million is the more accurate number.  Either way, Governor Christie's projection of $2.2 billion is about $1 billion or more higher - a large enough gap through which to drive a claim that the governor is over-reaching and need not make all the gut-wrenching cuts he proposes this fiscal year.

The governor's plan is to impound a substantial amount of funds - an action which Thurman Hart    points out contravenes bills already passed by the legislature and signed into law by a governor.  As Thurman indicates, the Executive Branch is not expected to spend every penny in every program, however, "Once a bill is signed into law, it is just that...a law.  And not even the Governor is above the law of the state."

So what to do?

Democrats should go to court on the impoundment and Executive Order issues to get more clarity on Executive prerogatives.  A court's decision would not likely come in time to affect the Governor's actions during the current fiscal period ending June 30.  However,  if the court were to rule against Governor Christie in his over-reaching Executive Order(s) and his unilateral freezing of funds, there would be value in the precedents set, because one might suspect he would like to use his axe (never his scalpel) again and again in the future.  

Regarding his current axe wielding, there is so little time to affect change that the issues also need to be litigated by opponents in the court of public opinion. Through good arguments reasonable people might agree that Christie has exaggerated the budget shortfall, usurped his impoundment authority, been unnecessarily harsh toward the most vulnerable, and done violence to the powers granted in Executive Orders.  Whether such arguments would convince him to change his current  actions are hard to predict, but short of our doing so we might as well surrender to four or more years of subjugation.  

"The work goes on, the cause endures, the hope still lives, and the dream shall never die." - Sen. Ted Kennedy


Thanks Thurman (0.00 / 0)
for putting together a Federal and NJ perspective on the unitary executive.

Actually, I am surprised that no one has brought a TRO, or was  at least thinking about it.

Even if an action, or many actions were brought, I fear that your second option of the legal process taking so long, the fiscal year would be over and the money not spent.  That is, unless there is a mechanism that would allow for bypassing the lower courts and have the case go directly to the State Supreme Court.

If the legal process goes past the fiscal year, it seems to me that the Court could order Christie to disburse funds retroactively.  Even if that were not to happen, the Court could set a precedent by denying Christie the right to impound funds without showing a specific necessity.  

In addition, he would have to show that there was no other way to solve the budget problem.

As Adam demonstrated, there is clearly a dispute with regard to the extent of the problem.  And, as any sentient being can see. there are other was of solving it, rather than withholding already appropriated funds.

The downside of all this is that Christie gets to appoint several SC justices.  I fear that we will have our own Roberts and Alito.


I think they already set precendent... (4.00 / 1)
when they ruled that McGreevey's borrowing was illegal, but it would cause too much consternation to stop it that late in the game. (in effect, we'll allow it, this one last time)

It'd be my bet that's what happens if they ultimately rule against Christie.

"Where ever you go, there you are." - Buckaroo Bonzai


[ Parent ]
excellent post (0.00 / 0)
but the silence makes it sound like Dems are on board with Christie's cuts to clean energy and environment - BPU just approved an $800 million ratepayer funded power line to import coal power into NJ, and CHristie cuts clean ernegy funds? WTF!. IUf Dems don't denounce that, they are fools:

N.J. Democrats take aim at Gov. Christie's cuts to NJ Transit, school funding
http://www.nj.com/news/index.s...


Can New Jersey Reverse Course? (0.00 / 0)

Interesting 76 page study of NJ's financial situation and how it went so wrong over so many years. It's from July 2009 but I just found it yesterday.

http://newjersey.mercatus.org/...


OMG! (0.00 / 0)
Interesting study of NJ's financial situation and how it went so wrong over so many years. It's from 1997:

http://tinyurl.com/ylnu5tc

As scarce as truth is, the supply has always been in excess of the demand.


[ Parent ]
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