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New Jersey News 2/19/02 Honeywell names David Cote as new CEO Honeywell
International, with headquarters in Morris Township, named David M. Cote,
49, as its new President, CEO and member of the Board effective immediately.
Prior to his appointment, Cote served as Chairman, President, and CEO of TRW,
the $16 billion Cleveland-based products and services provider for the space,
defense and automotive markets. Before joining TRW, Cote spent 25 years in
various management and leadership positions at GE. Cote will succeed Lawrence A.
Bossidy, 66, who will remain Chairman and a member of the Board of Honeywell
until June 30, 2002, when he will retire and relinquish both positions and Cote
will assume the chairmanship. After serving the company as Chairman and CEO from
1991 to 2000, Bossidy rejoined Honeywell in July of 2001. Cote is a 1976
graduate of the University of New Hampshire. see press
release 2/15/02 Tyco International expected to take stiff loss on sale of Livingston-based CIT unit According to a Reuters report published in The Star-Ledger, Tyco International, Ltd., is facing a loss estimated at $1 billion to $3 billion in the sale of its Livingston-based Tyco Capital commercial finance unit, the former CIT Group. Tyco, with legal headquarters in Bermuda and US headquarters in New Hampshire, acquired CIT last year for $10 billion as part of its aggressive series of acquisitions of 120 business for $53 billion led by Tyco CEO L. Dennis Kozlowski, son of a Newark police detective. Those acquisitions, and the debt and accounting practices associated with them, have come under increasing scrutiny, however, in the wake of the collapse of Enron. Tyco's stock has lost over $60 billion of market value since the beginning of the year, and on February 8 a class action shareholders' suit was filed in federal court in New York against Tyco, Kozlowski and other senior executives alleging various violations of securities laws, including failure to disclose the company's financial problems. The market concerns and the downgrading of Tyco's credit rating have made it difficult for Tyco Capital to gain access to the commercial paper market, and its sale and separation from Tyco is considered urgent for it to regain its financing options. The Reuters report, however, indicated that potential buyers, including GE Capital, Citigroup and FleetBoston, recognized the weakness of Tyco's position and were likely to seek a bargain price to complete the sale. On January 22, Tyco announced that it would restructure to create four publicly-owned businesses from its existing units, including the spin-off of Tyco Capital. ...see 1/22/02 report 2/14/02 General Motors to cut 1,100 workers in Linden General Motors Corp. confirmed reports that it will lay off 1,100 workers at its aging Linden assembly plant. The GM cutback followed Ford's announcement last month to close its Edison Ranger truck plant by 2004.. GM said that it will scale back production in Linden to one shift because of slow sales of the Chevrolet Blazer and GMC Jimmy sport utility vehicles made in Union County. The action by GM follows a decision last month by Ford Motor Co. Governor McGreevey's office stated he would request a meeting with GM officials to discuss potential State assistance to maintain employment in Linden, but a similar approach to Ford last month failed to save the 1,570 jobs in Edison. GM's Linden plant was opened in 1937 and is the oldest in the state. 2/11/02 McGreevey to use reserve funds, cuts to meet current year budget deficit Governor James E. McGreevey announced a series of actions, including heavy reliance on the use of reserve funds along with freezes, spending cuts, and other measures, to close a $2.9 billion shortfall in the current year FY2002 budget for the year ending June 30, 2002. The Governor still needs to find ways to balance the fiscal 2003 budget for the year commencing July 1, 2002, with current estimates suggesting that the shortfall could be as high as $6 billion. In a speech to the state Legislature, the Governor criticized spending by his Republican predecessors in office, noting that New Jersey's budget had grown from $14.8 billion just before Governor Whitman took office in 1994 to $23 billion this year. Major components of the Governor's plan include use of $325 million from the Unemployment Insurance Fund; use of $100 million currently designated for school construction; reduction of $72 million in state aid for colleges and universities; and cuts of $25 million each in shore protection funding and medicaid rate increases for physicians and hospitals. 2/1/02 Rutgers president Francis Lawrence announces retirement Rutgers University president Francis L. Lawrence announced his retirement as president. Lawrence has served as president since October 1990. In a letter to the Rutgers community, Lawrence wrote: "After much reflection and discussion with my wife and other members of my family over the past few weeks, I have decided that, at this point when, thanks to the talent and hard work of everyone in the Rutgers community, our well-loved university has marked the achievement of a long list of historic benchmarks, it is time for me to plan to step down from my role as President of the State University of New Jersey." Lawrence said that he had agreed to a request by Chairman of the Board of Governors Gene O'Hara to continue as president until the completion of search for his successor and that he planned to remain at Rutgers as a member of the faculty. 1/29/02 Merck to spinoff pharmacy benefits subsidiary as independent company Merck & Co., the world's third-largest drugmaker headquartered in Whitehouse, announced plans to spin off as a publicly-held company Merck-Medco, its pharmacy benefits subsidiary, to focus on its higher-margin manufacturing business. Medco, which was acquired by Merck in 1993, serves as a middleman between health insurance providers, such as HMOs and the federal government, and drug manufacturers, such as Merck, Pfizer Inc. and Bristol-Myers Squibb Co. Last year, Merck-Medco managed over 537 million prescriptions for 65 million people and operated the world's leading Internet pharmacy, according to the company. Over the past year, Merck's stock has lost nearly a third of its value, with Wall Street. analysts attributing the decline largely to investor concerns over the company's falling market share and few prospects for introducing major new drugs to replace those currently nearing the end of their patent protection. Merck's sales totaled $47.72 billion in 2001, including $26 billion from Merck-Medco. The company said that it hoped to complete the spinoff of Merck-Medco by mid-year. 1/28/02 State budget gap grows to $2.9 billion New Jersey's budget gap grew to $2.9 billion on the basis of revenue figures certified by state Treasurer John McCormac. The deficit increased as state revenues plummeted over the last month, particularly from lower income tax collections due to the fall in stock prices. McCormac said revenues were off by $2.5 billion from the total $23 billion budget that took effect last July 1. Gross income tax revenues are projected to be $1.407 billion below original estimates, sales tax revenues are projected to be $307 million below original estimates and corporate business taxes are expected to be $618 million below original estimates. In addition, he said the state must pay for $463 million in expenses that were not budgeted seven months ago, increasing the shortfall to $2.9 billion. 1/28/02 Toys "R" Us announces restructuring, store consolidation Toys "R"
Us, Inc., headquartered in Paramus, announced a series of steps to
enhance its future cash flow and operating earnings, including the closing of 37
Kids "R" Us stores and 27 non-Mission Possible format Toys
"R" Us stores, eliminating 1,900 store and headquarters positions, and
consolidating its store support center facilities. The company said that the
actions are expected to increase free cash flow in 2002 and beyond and to yield
improvements to pre-tax earnings of approximately $25 million in 2002, and
approximately $45 million annually beginning in 2003. The plan includes
consolidation of five separate support facilities in New Jersey to a new store
support facility in Wayne. The five New Jersey facilities include two locations
in Montvale, and one facility each in Paramus, East Hanover, and Ft. Lee. The
company's move to Wayne will begin in the summer of 2002 and is expected to be
completed by summer 2003. Paterson Mayor Martin Barnes was indicted on federal bribery charges by the US Attorney's Office in Newark for allegedly accepting cash and gifts from companies doing business with the state's third-largest city. The 40 charges include fraud, extortion, filing false tax returns, lying to federal agents and witness tampering. The indictment alleges Barnes accepted money and other gifts including 14 overseas trips, home improvements, a swimming pool, designer suits and furniture. If convicted, Barnes could face a prison sentence of up to 20 years and a fine of $250,000 or twice his gain, or twice the loss to the victim, if convicted of the most serious charge, extorting $5,000 from a contractor. The other charges include fraud, filing false tax returns, and lying to federal agents. Barnes vowed to fight the indictment, contending that he was innocent of all charges. 1/22/02 Johnson & Johnson names new leadership team Johnson & Johnson announced that its Board of Directors has named William C. Weldon Chairman and Chief Executive Officer, and James T. Lenehan President in addition to his responsibilities as Vice Chairman, effective April 25, 2002, the date of the annual shareowners meeting. Together, they will form the Office of the Chairman. They succeed Chairman and Chief Executive Officer, Ralph S. Larsen, 63, and Robert N. Wilson, 61, Senior Vice Chairman of the Board and Vice Chairman of the Executive Committee. Weldon and Lenehan, both 53, currently serve as Vice Chairmen of the Board. Weldon leads the Pharmaceuticals Group as well as the Consumer Pharmaceuticals & Nutritionals Group. Lenehan has responsibility for the Medical Devices & Diagnostics Group and the Consumer & Personal Care Group. Weldon will become only the sixth Chairman in the 116-year history of Johnson & Johnson. See company press release. 1/22/02 Kmart files for bankruptcy, NJ impact uncertain Kmart filed for bankruptcy reorganization after suffering disappointing holiday season sales and failing to regain market share. In its press release, the Company said its decision to seek judicial reorganization was based on a combination of factors, including a rapid decline in its liquidity resulting from its failure to meet sales and earnings goals in the fourth quarter, an erosion of supplier confidence, intense competition in the discount retailing industry and the continuing recession. Company officials emphasized that all its 2,114 stores would continue operating pending completion of its restructuring plan, and that it expected to emerge from bankruptcy in 2003. Kmart has 50 stores in New Jersey. New Jerseyan Floyd Hall served as Kmart CEO from 1995 until retiring June 2000; Hall now heads Floyd Hall Enterprises, his own firm in Little Falls that built Yogi Berra Stadium on the campus of Montclair State University and is owner of the New Jersey Jackals minor league baseball franchise that plays in the stadium. 1/22/02 Tyco International to spin off Livingston's Tyco Capital, three other businesses Tyco International, Ltd., the Bermuda-based conglomerate that acquired Livingston-based commercial finance firm CIT Group for $10 billion in June 2000, announced that it would restructure to spin off the former CIT and three other Tyco units as four independent publicly-owned companies. A company press release said that the former CIT, now renamed as Tyco Capital, along with Tyco's healthcare; fire protection & flow control; and financial services businesses will be taken public through initial public offerings, with shares distributed to Tyco shareholders. Tyco's security and electronics businesses will be combined as a fourth independent, publicly traded company. Tyco Plastics, one of the United States' largest manufacturers of plastic film and other plastic products, will be sold. Tyco Capital is scheduled to be the first of the IPOs in the second quarter of calendar 2002, with the remaining transactions expected to be completed by the end of calendar 2002. Tyco's stock price has been battered by Wall Street concerns over its debt burden and accounting and financial practices in the wake of the collapse of Enron, including disclosure that Tyco paid a $20 million finder's fee to Frank Walsh, the prominent New Jersey philanthropist and member of its board of directors, for his role in Tyco's purchase of CIT. 1/16/02 McGreevey orders spending freeze, budget cuts During the first meeting of his Cabinet, newly-inaugurated Governor ordered a freeze on all state discretionary spending and cuts of total departmental budgets by 5 percent. It was uncertain how many layoffs of state employees would be required to meet the budget cutbacks. Governor McGreevey said that the budget cuts will save $100 million; with just five months remaining in the fiscal year, reductions of annual budgets by 5 percent would require spending cuts of 10 to 20 percent between now and June 30. 1/15/02 Foster Wheeler struggles to restore earnings Shares of Foster Wheeler Ltd., the global engineering and energy equipment company with its principal operating headquarters in Clinton, fell 20.1 percent, or 47 cents, to $1.78. On Monday, the company said it would exercise its right to delay paying dividends on its preferred stock. The decision provoked new concerns over liquidity problems facing the company. Foster Wheeler has been hurt by the global slowdown in the energy industry, as well as costly settlements relating to its construction of a waste-to-energy plant in Robbins, Illinois, which required write-offs exceeding $260 million over the last two years. 1/15/02 McGreevey inaugurated, cites security, state finances and schools as priorities Governor James E. McGreevey, in his inaugural address delivered after his taking the oath of office in Trenton, cited as priorities threats to the sense of community and personal security following the September 11 terrorist attacks, the state's fiscal problems, and education. He said that the state faced "...a new set of challenges -- the challenge of keeping our families and streets safe from further acts of terror and violence, the challenge of living within our means in the face of a national recession, and, our most important challenge, making our schools work so that we prepare our children for their future, for their challenges". 1/15/02 Forrester announces US Senate candidacy, other Republicans consider runs Millionaire businessman Douglas Forrester filed a statement of candidacy for U.S. Senator with the Secretary of the Senate. The CEO of health benefits firm BeneCard Services, former West Windsor mayor and director of the pensions division in the Kean administration, said that he is prepared to spent several million dollars of his own money to win the 2002 nomination to challenge incumbent Robert Torricelli. Meanwhile, according to a January 14 report on politicsnj.com, some conservatives are urging another millionaire, Timothy Forbes, the brother of Malcolm S. "Steve" Forbes, to become a candidate. Steve Forbes previously indicated that he would not seek the GOP nomination. Other candidates still considering filing for a primary run include State Senators Diane Allen of Burlington County; John Matheussen of Gloucester County, who turned down a reported offer to become Commissioner of Transportation in the McGreevey cabinet; Mercer County Executive Robert Prunetti; former Knight Trading CEO Kenneth Pasternak; and former Whitewater and Lewinsky Independent Counsel Robert Ray. The only announced candidate other than Forrester is Essex County Executive James Treffinger. NY-NJ Port Authority Chairman Lewis Eisenberg took himself out of the race last week after being named as finance chairman of the Republican National Committee. 1/14/02 State trooper racial profiling case ends in controversial plea bargain Two state troopers, James Kenna and John Hogan, entered guilty pleas in Superior Court to charges of official misconduct and giving false information after admitting using racial profiling -- targeting minority drivers -- when stopping motorists on the New Jersey Turnpike. Kenna and Hogan were charged after a April 23, 1998, incident in which the two troopers stopped a van on the Turnpike in Washington Township in Mercer County, firing 11 shots at four unarmed minority men inside. Three men in the van were injured. Under terms of the plea bargain with the State Attorney General and approved by the Court, more serious charges of attempted murder against Kenna along with aggravated assault against both troopers were dropped and no jail time was imposed. The troopers will lose their jobs as police officers, were barred from holding public office and were each fined $280. According to an article in The Times of Trenton, the Reverend Reginald Jackson of the Black Ministers Council of New Jersey said "This is not justice", and that he was disappointed that supervisors in the State Police who encouraged racial profiling were not named. The Reverend William Rutherford, president of the state conference of the NAACP, said he was "outraged" in press reports. 1/11/02 Ford to close Edison Plant As part of a series of actions to improve its financial performance, Ford Motor Company announced that it would close the Edison plant producing Ranger pickup trucks by 2004. The plant, opened in 1948, currently employs 1,570 hourly workers. In December, Ford announced that it was ending the second shift at the Edison Plant. Other plants to be closed are in Oakville, Ontario, by 2004; Brook Park, Ohio, near Cleveland in either 2003 or 2004; Hazelwood, Missouri, near St. Louis by an undetermined date; and Vulcan Forge in Dearborn, Michigan as soon as possible. The company also announced it would end production of its once best-selling Ford Escort model and also the Mercury Cougar sports coupe, the Mercury Villager minivan and the Lincoln Continental luxury sedan. Ford is taking a $4.1 billion one-time charge against earnings to pay for its plan. which will result in a reduction of 35,000 jobs. The job cuts, including 22,000 in North America, amount to about 10 percent of Ford's overall work force of 340,000. See Ford press release and Edison Assembly Plant Fact Sheet... 1/11/02 Secretary of State, Public Utilities President and Agriculture Secretary designated for McGreevey Cabinet Governor-elect James E. McGreevey today announced he would nominate Democratic activist Regena Thomas as Secretary of State; former EPA Regional Administrator and deputy NJ environmental commissioner Jeanne Fox as President of the Board of Public Utilities; and Sussex County Freeholder Charles Kuperus, a Republican, as Secretary of Agriculture. He also chose Newark Police Director Joseph Santiago to become Superintendent of the New Jersey State Police. The selection of Thomas, who has received national attention for her get-out-the-vote efforts organizing minority voters in campaigns for NJ Senator Jon Corzine, former NY City Mayor David Dinkins and others, was criticized by NJ Republican Chairman and Senator Joseph Kyrillos (R-Monmouth), who said the political campaign consultant "lacks the necessary experience to effectively carry out the department's mission." Kyrillos also challenged the wisdom of McGreevey's decision to transfer the NJ Division of Elections to the Department of State from the Department of Law & Public Safety, contending the proposed move was based on"... political strategy rather than sound public policy." 1/10/02 Governor's staff, Cabinet choices for economic development, banking and insurance and military confirmed Governor-elect James E. McGreevey confirmed the makeup of his senior staff today, designating Gary Taffet, 35, as chief of staff ; Jim Davy, 48; as chief of management and operations; Jo Astrid Glading, 42, as chief of policy and communications ; and Paul Levinsohn, 34, as chief counsel McGreevey also chose the Rev. William Watley, senior pastor of St. James AME Church in Newark and a close political associate of Newark Mayor Sharpe James, to head the Commerce and Economic Growth Commission. Former Deputy Insurance Commissioner Holly Bakke, 49, will be the new banking and insurance commissioner. Since 1989, Bakke has held positions with a number of insurance organizations, including the Medical Malpractice Reinsurance Association. McGreevey also selected career soldier Col. Glenn Rieth, 54, to be adjutant general, the head of the Department of Military and Veterans Affairs overseeing the NJ National Guard. 1/09/02 Verizon gets NJ BPU support to offer long-distance The New Jersey Board of Public Utilities endorsed Verizon Communication's proposed entry into the New Jersey long-distance market now pending before the Federal Communications Commission. The BPU decision follows a five-year review of Verizon's compliance with the requirements of the federal Telecommunications Act of 1996 to take steps to facilitate entry of competitors into the local phone market. The BPU commissioners conditioned their approval on a demonstration by Verizon that it had implemented a new wholesale rate schedule set by the Board in December 2001, which would reduce some charges by 40 percent. The FCC has until March 20 to decide on Verizon's long-distance application, which was filed December 20. Industry observers expect that the FCC will approve the application, thus increasing competition for long-distance services. See BPU press release; see Verizon press release... 1/09/02 McGreevey names State Treasurer, Department of Environmental Protection head Governor-elect James E. McGreevey named John McCormac, his veteran municipal financial director in Woodbridge, as State Treasurer and Bradley Campbell, a former regional director of the U.S. Environmental Protection Agency, as commissioner of the NJ Department of Environmental Protection. McCormac, 43, is a certified public accountant with a master's degree in business administration. Campbell, 40, was EPA region III director from 1999 to 2001 based in Philadelphia, and previously served in the Clinton administration as a member of the White House Council on Environmental Quality, where he was involved with Superfund issues and reforms in hazardous-waste laws. 1/09/02 Merrill Lynch takes $2.2 billion charge against earnings, cutting 9,000 jobs Merrill Lynch today announced that it would take a fourth-quarter $2.2 billion pretax charge against earnings ($1.7 billion after tax) in order to improve future profitability. The firm expects it actions will result in approximately $1.4 billion in annual savings. A substantial amount of these savings is expected to flow through to earnings; a portion will be reinvested in priority growth initiatives. Major components of the charge, some of which are still in process include workforce reductions of approximately 9,000 through a combination of divestitures, voluntary separation and managed reductions; consolidation of private client offices in the U.S., Europe, Asia and Australia and the closure or subletting of excess office space in the U.S.; and writing down the value of certain technology assets. When completed, the job cutbacks are expected to reduce the firm's total workforce by about 15%. 1/08/02 McGreevey names first Cabinet choices Governor-elect James E. McGreevey announced his selections for commissioners of the departments of education, labor, personnel and health today. William Librera, former Montclair superintendent of schools who also headed the Allamuchy district until leaving last year to teach at New Jersey City University, will be the state's new education commissioner. Veteran labor union lawyer Albert Kroll, a law partner of retiring Sen. John Lynch, one of McGreevey's key political advisers, was announced as the proposed labor commissioner. Ida Castro, chairwoman of the U.S. Equal Employment Opportunity Commission in the Clinton Administration and a veteran Democratic political activist, was designated as personnel commissioner. Clifton Lacy, a vice president and chief of cardiac disease care at the Robert Wood Johnson University Hospital in New Brunswick, will be the new health commissioner. On January 7, McGreevey confirmed he would nominate David Samson, a former Republican, as Attorney General. 1/08/02 Rapid turnover in Governor's office as new legislature sworn in Acting Governor Donald DiFrancesco's term in office ended at noon today, when a new legislature was sworn in and DiFrancesco's term as Senate President ended. At noon, Attorney General John Farmer took office, and his term expired at 1:30 PM when the new Republican Co-Senate President, John O. Bennett, took the oath of office as Acting Governor. Bennett will serve until Democrat Co-Senate President Richard J. Codey is sworn in to office at midnight on January 12. Governor-elect James McGreevey will be inaugurated for his four-year term on January 15. 1/07/02 Lucent names Patricia Russo as new CEO Lucent Technologies, the troubled telecommunications infrastructure company based in Murray Hill, today named Patricia F. Russo as the company's president and chief executive officer. Russo, 49, will succeed Henry Schacht, 67, who will serve as chairman of the company. Russo most recently served as president and chief operating officer of Eastman Kodak Company. She now returns to Lucent where she was one of the founding executives who helped launch the AT&T spin-off in 1996. Russo spent 20 years in senior executive leadership positions at Lucent and AT&T, managing some of the business's largest divisions and most critical corporate functions. According to Lucent's press release confirming the widely-rumored appointment, Schacht said: "Pat brings deep knowledge of our industry and our customers coupled with the ability to lead a large organization through change," said Schacht. "She understands and embraces our strategic and restructuring plans, and she can step in as CEO without missing a beat." 1/03/02 US Attorney closes Torricelli probe without charges US Attorney Mary Jo White of the Southern District of New York announces that she is ending the investigation of US Senator Robert Torricelli without filing charges. In a one-page announcement, White said simply that her office had concluded its investigation of Torricelli without the filing of criminal charges. White, who leaves office January 7, said that information developed during the investigation would be referred to the U.S. Senate Ethics Committee. Following the announcement, Torricelli told the press: "Thank God. The fact this investigation was so long and so thorough means no one could ever claim that any of these ridiculous accusations were true." The government's investigation of Torricelli began in 1997, and focused in part on Torricelli's campaign finance practices in his 1996 election campaign and on whether he received unreported gifts from David Chang, a New Jersey businessman seeking the Senator's help in business dealings with the governments of North Korea and South Korea. Chang pled guilty in 2000 to charges that he made $53,700 in illegal contributions to Torricelli's campaign. In Washington, Deputy Attorney General Larry D. Thompson issued the following statement: "I was advised by U.S. Attorney Mary Jo White and her office of their decision in this matter. I am satisfied that after a thorough investigation, Ms. White and her office have appropriately exercised their prosecutorial discretion, in keeping with the Department's longstanding guidelines." 12/13/01 Prudential completes public offering Prudential Financial, the former Prudential Insurance Company of America, announced that its common stock began trading on December 13 on the New York Stock Exchange under the symbol "PRU." The Initial Public Offering will close on December 18, 2001 at which point Prudential will convert from a mutual company to a publicly-traded stock company. As part of its restructuring and New Jersey implementing legislation enacted earlier this year, the practice under which the Chief Justice of the New Jersey Supreme Court appoints six of the Company's board of directors will be ended. See Prudential press release... 12/12/01 NJ Transit moves toward fare hikes New Jersey Transit initiated the process toward an expected series of fare hikes to be effective next year when its board of directors approved scheduling six public hearings throughout the state on January 2. If approved, fares would go up 10 percent more next year on NJ Transit trains and buses and the Newark subway, with fares rising again between 2003 and 2007 under the agency's proposal. The fare increase would be the first in over 10 years for NJ Transit. It would raise about $44 million in its first year. Agency officials contend the increase is required to close a projected $3.1 billion budget gap over the next five years. See NJ Transit press release... 12/12/01 Moody's downgrades NJ fiscal rating Moody's Investors Service, one of the two leading Wall Street bond rating firms, downgraded New Jersey's fiscal outlook from stable to negative based on its concerns over a projected 10 percent drop in revenue next year. Since the election in November, Gov.-elect Jim McGreevey has been urging a freeze on new state spending, saying the state could end up with a $900 million deficit rather than the $1 billion surplus, and charged that. Acting Gov. Donald T. DiFrancesco has failed to meet his constitutional obligation to maintain a balanced budget. Republican majorities in the lame-duck Legislature, however, are proceeding to expedite action on a series of appropriations bills to assist specific districts and constituency groups before the current session ends in January. The state acknowledged that it faces a $700 million revenue shortfall, but other analysts see a potential deficit much higher than the Treasury estimates. Moody's said it downgraded the financial outlook because of the potential impact of the weak national economy and stock market on New Jersey's revenues, which could particularly impact corporate and personal income tax revenues. 12/04/01 November election results certified, McGreevey wins with 1,256,853 votes to Schundler's 928,174 votes The New Jersey State Board of Elections certified the official results of the November 6 election.In the gubernatorial election, Woodbridge Mayor Jim McGreevey received 1,256,853 votes and Republican challenger Bret Schundler 928,174 votes, a 56-42% margin for McGreevey. See official results (Acrobat Reader file only)... 12/3/01 Ford to shut down second shift at Edison plant Ford Motor Company, as part of a cutback program attempting to save $300 million through global operations restructuring, announced that it will eliminate the second shift at the Edison Assembly Plant in Edison. The shift elimination at Edison will become effective February 4, 2002, laying off approximately 600 hourly workers and 30 salaried employees. The plant produces the Ford Ranger compact pickup truck, and the termination of the second shift will reduce annual production by 84,000 units. Ford also will make several changes to salaried compensation and health care benefits, including the suspension of company matching contributions to the 401(k) plan in the US. See Ford press release... 11/27/01 Supreme Court hears challenge to affordable housing precedent A key challenge to New Jersey's landmark Mount Laurel line of low-income housing judicial precedents was argued before the State Supreme Court in the appeal of the Appellate Division's decision in Toll Brothers v. West Windsor. Lawyers for West Windsor and the State League of Municipalities argued that the Mount Laurel decision had been misused by developers to build higher-density housing without meeting the goals of expanding affordable housing for lower-income groups. Attorneys for the New Jersey Builders Association, and Toll Brothers, the developer of the proposed West Windsor project in dispute, countered by pointing to resistance of suburban towns to enact master plans and zoning rules to insure adequate levels of affordable housing. The case is the first one to come before the high court in 15 years to question the continuing validity of the so-called Mount Laurel doctrine and the "builder's remedy" created by the courts to help subsidize affordable housing by allowing developers to build higher-density projects than allowed by local zoning to force uncooperative towns to plan for low- and moderate-income housing. In lower court decisions, Toll Brothers gained approval to build 400 single-family houses, 135 town houses and 630 apartments for a tract near Route 1. The development would also include 175 housing units set aside for buyers or renters who meet lower-income guidelines. 11/27/01 Marks & Spencer nearing sale of Kings Supermarkets The sale of Kings Supermarkets by its current parent corporation, Marks & Spencer of the United Kingdom, is expected to be completed before the end of the year, according to press reports. Bidders include New York based D'Agostino Supermarkets and a management group led by Kings CEO Alan Levitan. Marks & Spencer is currently restructuring its operations to improve its financial performance, and previously announced on November 23 the sale of another subsidiary, the venerable men's clothing retailer Brooks Brothers to Retail Brand Alliance, Inc., a privately owned US specialty retailer, for $225 million in cash. 11/21/01 Former Gov. Kean announces decision not to enter US Senate race Former Gov. Thomas Kean announced he would not seek the Republican nomination for U.S. Senate. Kean resisted appeals from high-level GOP leaders including President Bush and Vice President Dick Cheney, to challenge Sen. Robert Torricelli in a race expected to require some $10 million. Kean attributed his decision to his dislike of fundraising, opposition from family members to his entering the race and his focus on the capital campaign he is directing for Drew University, where he continues as president. The only announced contender for the GOP nomination is Essex County Executive James Treffinger, who announced his intention to run earlier in the week. Other Republicans still considering a run include Burlington County Senator Diane Allen, Mercer County Executive Robert Prunetti, former Presidential contender and publishing magnate Steve Forbes and Lewis Eisenberg, outgoing chairman of the Port Authority of New York and New Jersey and co-founder of Granite Capital International Group, a New York investment management company. 11/17/01 Former US Senator Harrison Willims dies at 81 Former U.S. Senator Harrison A. Williams Jr., who was convicted in 1981 as a result of an undercover FBI sting operation under the code name Abscam, died at age 81. Williams had battled cancer and heart problems in recent years, died at St. Clare's Hospital in Denville. Williams served as New Jersey's U.S. senator for 23 years, but was convicted on May 1, 1981 on bribery, conflict of interest and conspiracy charges. He resigned his Senate seat in March 1982. The Abscam probe also led to convictions of six U.S. Representatives and 13 other people, and centered around FBI agents posing as wealthy Arabs offering cash for preferred treatment on matters before government agencies. 11/16/01 McGreevey prevails in battle to select Sires as Assembly Speaker Governor-elect James McGreevey won a 10-day battle to have his hand-picked choice for Assembly Speaker, Albio Sires, a freshman lawmaker who is also the mayor of West New York, elected speaker when the new Legislature takes office in January. The fight over the top Assembly leadership post placed McGreevey against Assemblyman and Bayonne Mayor Joseph V. Doria Jr., the minority leader, who had expected to become speaker. Assemblyman Joseph J. Roberts Jr. of Camden, the state Democratic chairman, also expected to challenge Doria, but will now take the second-ranking leadership post of Majority Leader. McGreevey's surprise choice of Sires, a former Republican, also placed him at odds with Congressman Robert Menendez, and featured questions over McGreevey's credibility in implying his support of Doria during the campaign. 11/16/01 NJ Senate control tied at 20-20 after Hughes concedes close race to Cafiero Democrats today conceded a close Senate race in the First District to the incumbent, James S. Cafiero of North Wildwood, insuring that the State Senate will be split 20 to 20 between Republicans and Democrats. Democrat William Hughes, Jr., the son of former Congressman Hughes, conceded defeat by less than 500 votes in the closest race in this year's legislative election. See 2001 election results from NJ Division of Elections. 11/7/01 James E. McGreevey, the Democratic mayor of Woodbridge, easily won election on November 6 as New Jersey's 51st governor, defeating conservative Republican, Bret D. Schundler, whose campaign was hampered by the media and public focus on the aftermath of the September 11 terrorism attacks and the failure to gain support from Republican moderates, including Acting Gov. Donald DiFrancesco. McGreevey tallied 56 percent of the vote to Mr. Schundler's 42 percent. Control of the State Senate remained dependent on final results of the first district, where incumbent James Cafiero faced a strong challenge from William Hughes, Jr., a former assistant US Attorney and son of former Congressman William Hughes, Sr. See 2001 election results from NJ Division of Elections.
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