Mayor's Message

Middletown Takes Lead Against Pay to Play

By Mayor Gerard P. Scharfenberger Ph.D.

Of all the ordinances that have been proposed and passed by the Middletown Township Committee, perhaps none will equal the recently adopted Pay to Play (PTP) Ordinance in both importance and impact to the community.  It is a document that every resident of Middletown can be proud of in that it serves to ensure and protect both the purity and fairness of the political process within the township.

The Middletown PTP ordinance has been lauded as a model for other municipalities to follow.  It is all encompassing and severely limits campaign contributions from a variety of organizations and entities beyond individual contributors. One of the most gratifying aspects of the passing of this ordinance was the support and encouragement received from the Citizens Campaign advocacy group.  The Citizens Campaign is a group associated with Common Cause, which is a nonpartisan, nonprofit advocacy organization founded as a vehicle for citizens to make their voices heard in the political process and to hold their elected leaders accountable to the public interest.  Their input and support was invaluable in crafting a document that addressed all of the complex aspects of campaign finance at the local level.

One of the most important features of the ordinance is the strict limitation placed on “wheeling.” Wheeling is the practice of bypassing local campaign limits by funneling money through political action committees (PACs).  This practice is particularly abhorrent, since it serves to subvert the will of the local electorate by bringing in large amounts of money from outside a municipality to try and influence a local election. In the absence of state legislation that addresses the issues of wheeling, I felt we needed to take steps to curb the practice to the extent possible.  I am happy to say that these new regulations include the strongest restriction on wheeling in the entire state of New Jersey.  As a result of the wheeling restriction, a Middletown Township Committee candidate cannot accept a contribution of more than $500 per election from each of the following:

• A county committee of a political party outside of Monmouth County,
• from another candidate committee or municipal political party committee outside of Monmouth County
• a state political party,
• a legislative leadership committee,
• a continuing political action or PAC

 
The ordinance also establishes rules and procedures for contracting with professional businesses. These rules and procedures are designed to work in tandem with the fair and open bidding process to ensure that no favoritism figures into the awarding of contracts.  Businesses that have or seek a public contract to provide services can only contribute a maximum of $2,500 annually to all municipal candidates, municipal campaign committees, municipal or Monmouth County political committees, and political action committees. This includes contributions made by all principals who own at least 10 percent of the business, their spouses and any children living at home.
Of this total:

• a maximum of $300 could be contributed to any municipal candidate,
• a maximum of $500 could be contributed to a Middletown political party committee,
• a maximum of $500 could be contributed to the Monmouth County party committee or a political  action committee.

The ordinance also states that no established liquor establishment or applicant for a liquor license can make any contribution to any municipal candidate, municipal political party or county committee. This includes contributions made by the license holder or applicant, their spouses and any children living at home as well as all members, partners, shareholders, officers, directors, and trustees of the licensed establishment or applicant for a license.

The Middletown PTP ordinance is the culmination of exhaustive research by the township attorney and members of the Township Committee, who examined numerous ordinances from other municipalities, as well as the recently adopted Monmouth County PTP ordinance to formulate what we feel is an effective piece of legislation that will stand up to the scrutiny of constitutional challenges.  Great care was taken to protect the township from the type of potential litigation that has beset other ordinances where the line between regulating campaign contributions and restricting free speech was blurred.

It is important to establish policies that ensure government processes remains fair and open.  The Middletown Pay to Play ordinance follows a host of other ethics reforms that began in 2005, which included the creation of the Middletown Employee Alert Line, a toll free, 24, hour anonymous ethics hotline, and the hiring of a new Equal Employment Officer.  In January of this year, the Township Committee passed a resolution calling on the state to address both the pension system and the issue of health benefits at the state level, and also passed ordinances prohibiting dual office holding and a health benefit option for elected officials.

Thanks to the new pay-to-play regulations, residents can feel a renewed sense of confidence that the improper influence is not being exerted on local elections.  The township’s newly enacted pay-to-play and wheeling regulations are structured in such a way that is fair to all parties and will be effective but easy to comply.

This article appeared in the October edition of Middletown Matters, the township's official newsletter.