Millions in environment settlements could be diverted under Christie's stealth veto

Gov. Chris Christie quietly took language out of the state budget that would have ensured millions of dollars from legal settlements with polluters would go to environmental restoration instead of being diverted to other areas, officials confirmed Wednesday.

After a tense budget impasse that saw the state government shut down for three days, Christie used his line-item veto early Tuesday to strike language that dedicated half of environmental settlements to “remediation, restoration, and clean up.” 

The move could have significant consequences for a $225 million state settlement with Exxon Mobil Corp. that could be approved by a judge this fall. Under the budget that was signed by Christie, only $50 million would go to a state fund used to restore land and water that have been affected by hazardous waste. 

The veto also follows a pattern by Christie, who had diverted almost $300 million from polluters of the Passaic River in recent years to the general fund. 

Christie, a Republican, had said he would not use his line-item veto to take money out of the Democrats' budget if he was able to sign legislation that restructured the state's biggest medical insurer, Horizon Blue Cross Blue Shield. He threatened to snip 73 items for a total of $325 million. 

After a deal was struck, Christie kept his word on the 73 spending items. However, he used his red pen to take out several pieces of language that dedicated money to different programs, including preschool expansion and environmental restoration.  

As those line-item vetoes were brought to light Wednesday after the Independence Day holiday, Assembly Speaker Vincent Prieto, D-Secaucus, said Christie had been dishonest in negotiating a deal during the contentious weekend impasse.

EDITORIAL:Christie shifts pollution settlement funds

BUDGET DEAL: What you need to know

STILE: Budget breakthrough leaves Christie with face-saving consolation prizes

EDITORIAL: On the third day, a budget deal

Brian Murray, a Christie spokesman, did not address the environmental settlements directly on Wednesday. But officials at the Office of Legislative Services confirmed that Christie had struck out the language. 

Murray said the governor never promised to withhold the line-item veto.

"The governor never agreed to sign an unbalanced budget by preserving every additional spending request sneakily tucked into the budget and not paid for by revenue," Murray said.

Democratic legislators who fought to have the environmental language included in the budget said it could have ramifications.

"We were fighting for that because we wanted to make sure the money goes where it’s supposed to," said Assemblyman Tim Eustace, D-Maywood, chairman of the Assembly Environment and Solid Waste Committee. "It's a shame, because we have so many sites that could use this money." 

The Christie administration had already assumed using $225 million from the Exxon settlement to balance the budget when he introduced his spending plan earlier this year. But the settlement is being challenged by environmental groups and state Sen. Ray Lesniak, D-Union, who claim it's too low for the damage incurred at the company's former Linden and Bayonne plants. Oral arguments are expected this fall, said Jeff Tittel, executive director of the New Jersey Sierra Club, one of the groups challenging the settlement. 

When a judge rules is key. A public question on November's ballot would prevent Christie and future governors from diverting environmental settlement money. If approved, it would go into affect when the election is certified. 

"Hopefully we can run the clock out, so the question gets passed and we don't have to worry about these budget raids when it comes to Exxon," Tittel said.