By Matt Friedman

Presented by Clean Energy Action Now! (CLEAN)

Good Thursday morning!

As he was hemorrhaging Democratic support in New Jersey, indicted Sen. Bob Menendez focused on his Hispanic heritage.

“It is not lost on me how quickly some are rushing to judge a Latino and push him out of his seat. I am not going anywhere,” Menendez said.

So how’s that playing? Not well. Not only have no Hispanic politicians come out to defend Menendez, but Rep. Pete Aguilar (D-Calif.), the the highest-ranking Latino in Congress, on Wednesday called for Menendez to resign and specifically rebuked the senator’s claim.

“I’d also say Latinos face barriers and discrimination across the board in so many categories, including in our justice system — this is not that,” Aguilar said. Aguilar is not alone.

Much more on Menendez below

TIPS? FEEDBACK? Email me at [email protected].

QUOTE OF THE DAY: “I found what I read to be alarming … And he came back immediately, quite forcefully, with a tone I thought was inappropriate. That line, ‘I’m not going anywhere!’ just stuck in my head. He was talking like he owned the seat. And that kept me up all night. I felt the need to be very forceful and immediately respond back, saying that ‘We’re going to hold you accountable.’” — U.S. Rep. Andy Kim on Bob Menendez

PHOTO OF THE DAY: This one, courtesy of Alex Zdan

HAPPY BIRTHDAY — Heather DeJong, Christine Goodman, Adam Neary, Dave Catuogno, Scott Mulhauser

WHERE’S MURPHY? No public schedule

PROGRAMMING NOTE — I’m taking the rest of today and tomorrow to attend a wedding. Mia McCarthy will be your Friday Playbooker.

A message from Clean Energy Action Now! (CLEAN):

Gas companies don’t want NJ consumers to know: Efficient electric heat pumps and appliances are healthier and can save you money. Switching to electric can reduce energy bills by up to 41%. Americans bought more electric heat pumps than gas furnaces every month in 2022. Yet here in NJ, the gas lobby is working hard to mislead you. Get the real story about how going electric improves comfort, delivers cleaner air, and saves money.

A CONSTITUTIONAL MENENDEMENT — Assembly GOP leader pitches suspending indicted officials after Menendez is charged, by POLITICO’s Daniel Han: The state Assembly’s top Republican wants to amend New Jersey’s Constitution to suspend elected officials indicted on criminal charges from public office — a direct response to embattled Sen. Bob Menendez refusing to resign. The proposal from Assembly Minority Leader John DiMaio — which has been introduced in years prior but failed to advance — comes as the state’s senior senator faces a federal indictment that he used his office to benefit New Jersey businesspeople and the government of Egypt in exchange for cash, gold bars, a luxury car and more. Menendez pleaded not guilty Wednesday at a Manhattan courthouse. Under the proposal, indicted local, state and elected officials would be suspended and temporarily replaced pending the judicial process. … If the Legislature moved forward with the proposal, it wouldn’t result in Menendez being suspended from office anytime soon due to procedural rules. Constitutional amendments must be approved on the ballot by voters.

AS THE WORLD TURNPIKES — Murphy's next chief of staff comes with builders' support, but environmental baggage, by POLITICO’s Ry Rivard: Diane Gutierrez-Scaccetti, New Jersey Gov. Phil Murphy’s next chief of staff, is easily applauded by builders and labor unions but greeted skeptically by environmentalists. Starting next Monday, Diane Gutierrez-Scaccetti will be juggling two of the most powerful and difficult jobs in state government: chief of staff to the governor, while also remaining the head of the state Department of Transportation through the end of the year. As DOT chief, she also chairs the boards of the Turnpike Authority — where she rose through the ranks from a contractor administrator to executive director — and NJ Transit, the state bus and train service. … “I don’t think the governor could pick much better,” said Greg Lalevee, the business manager of the International Union of Operating Engineers, Local 825. … But while her transportation roles have helped her make friends, as she oversees a shower of road and bridge projects, she’s also been the tip of the spear on controversies that environmentalists have portrayed as a test of Murphy’s seriousness about climate change. … The Turnpike Authority, which Gutierrez-Scaccetti chairs, is supporting an $11 billion road expansion at the mouth of the Holland Tunnel. Meant to relieve traffic and replace an aging bridge, the project has critics in Jersey City and the environmental movement who argue it’s a misguided use of money, particularly at a time when NJ Transit faces a $1 billion budget deficit.

STEPPING BACK FROM POLITICS — Norcross: Scutari 'will have to answer' why he's not doing enough for South Jersey Democrats,  by POLITICO’s Matt Friedman: South Jersey Democratic power broker George Norcross and Senate President Nick Scutari continue to feud, with only a little over a month to go before state legislative elections that could alter the partisan balance in the Statehouse. After hearing some grumbling about fundraising for key legislative races by South Jersey Democrats, POLITICO reached out to Norcross to ask if he was happy with what legislative leaders are doing for South Jersey. The region features some of the more competitive races in November. “I’m sure the State Senate Democratic leader has his reasons for not supporting our excellent candidates in the south for what is shaping up to be a difficult November for Democrats,” Norcross said in a statement. “You’d think he would be doing everything possible to protect Democratic control just as Governor Murphy and his excellent chief of staff George Helmy are doing to help elect our strong candidates. He will have to answer to his caucus why he isn’t helping in any meaningful way.” Norcross praised Murphy, but did not mention the third top-ranking Democrat in the state: Speaker Craig Coughlin.

—“N.J. should use corporate taxes to avert NJ Transit fare hikes, group says” 

—“Lawsuit challenging NJ bear hunt set for hearing next week” 

—“New Jersey Supreme Court to rule on pandemic-related insurance exclusions” 

A message from Clean Energy Action Now! (CLEAN):

I WAS HOPING HE’D SING HIS PLEA  — Menendez pleads not guilty to corruption charges, by POLITICO’s Eric Orden: Sen. Bob Menendez (D-N.J.) pleaded not guilty in Manhattan federal court Wednesday to bribery and extortion charges stemming from his relationship with three New Jersey businesspeople. … Menendez, 69, is charged with conspiracy to commit bribery, conspiracy to commit honest services fraud and conspiracy to commit extortion. He appeared in court in a navy pinstripe suit alongside his wife, Nadine Menendez. … She, too, is charged in the indictment, with prosecutors accusing her of facilitating the alleged bribery schemes by introducing her husband to some of the businesspeople and to Egyptian officials. She also pleaded not guilty Wednesday. The senator was released on a $100,000 personal recognizance bond, and Magistrate Judge Ona Wang ordered him to surrender his personal passports, although she allowed him to keep his official passports.

PUTTING THE ‘END’ IN MENENDEZ — The swift and stunning downfall of New Jersey Teflon Don, by POLITICO’s Dustin Racioppi: Micah Rasmussen knows what it’s like to be on the wrong side of Bob Menendez. Back in 2003 as press secretary for Democratic Gov. Jim McGreevey, he pushed back against Menendez’s favored candidate for the state Supreme Court, fellow Cuban Zulima Farber. Menendez, then a U.S. representative, deridingly called the governor’s office “amateur hour” in the press because McGreevey did not put her on the bench, and he wanted to know why. So Rasmussen explained: Farber had a poor driving record that included unpaid parking tickets. Menendez was unsparing in his response. “He called for my resignation and he wanted me fired because I dared to fight back on behalf of my boss,” Rasmussen, now the director of the Rebovich Institute for New Jersey Politics at Rider University, said in an interview. “To me it indicates he can hit you but you’re not allowed to hit him.” Menendez seems to still believe he’s wrapped in Teflon, insisting in a press event Monday that he’s not resigning his Senate seat after being indicted for the second time on bribery charges. But his remarkable half-century run in politics looks all but finished after a young, straitlaced prosecutor matter-of-factly laid out the depth of his latest alleged corruption on Friday.

BRINGING NEW MEANING TO THE TERM ‘PYRAMID SCHEME’ — ”The FBI is probing whether Egyptian intelligence played a role in Bob Menendez’s alleged bribery scheme,” by NBC News: “The FBI is investigating whether Egypt's intelligence services might have been involved in the alleged bribery scheme described in the indictment of Sen. Bob Menendez and his wife, sources familiar with the matter told NBC News. The counterintelligence investigation is in addition to the federal corruption case that accuses Menendez, D-N.J., of accepting hundreds of thousands of dollars in bribes, the sources said. As chairman of the Senate Foreign Relations Committee, Menendez helped oversee billions of dollars in U.S. aid to Egypt. He stepped down as chairman after he was indicted.”

GOLD MAN VS. GOLDMAN — “As Menendez’s star rose, fears of corruption cast a persistent shadow,” by The New York Times’ Nicholas Fandos: “Another fight erupted in 2004, when the mayor of Jersey City recruited Steven Fulop to try to primary Mr. Menendez. Mr. Fulop, an Iraq War veteran and Goldman Sachs analyst in his 20s, had no shot at winning, but the Jersey City mayor wanted to send a message to Mr. Menendez, a political rival. Mr. Menendez was furious. He called the home phone of the Goldman managing director who was handling government relations around the construction of the bank’s massive new tower in his district in Jersey City at the time. The managing director, who insisted on anonymity to discuss the previously unreported episode, recalled Mr. Menendez’s screams. He said he later called Mr. Menendez back to assure him the bank had been unaware of Mr. Fulop’s campaign. A spokesman for Mr. Menendez disputed on Tuesday that the call ever happened. In an interview, Mr. Fulop said he was promptly summoned by the head of Goldman’s human resources department and was told, ‘we don’t run primaries against sitting congressmen.’ He worried he would lose his job, but did not, and stayed in the race and lost. He is now mayor of Jersey City himself, and is running for governor.”

GAL BACKS BHALLA — “Guy voices support for Rep. Menendez ahead of potential ’24 primary with Bhalla,” by Hudson County View’s John Heinis: “Craig Guy, the Democratic nominee for Hudson County executive, voiced support for U.S. Rep. Rob Menendez (D-8) this morning over a potential primary with Hoboken Mayor Ravi Bhalla on June 4th, 2024. ‘As a freshman Congressman my friend Rob Menendez has worked extremely hard in Congress and has delivered results for his constituents in the 8th District and Hudson County,’ Guy posted on Instagram. … While he stopped short of a formal endorsement, Guy, who is the chief of staff to outgoing County Executive Tom DeGise and has no Republican challenger in November, coming out in support of the congressman likely signals support coming from the Hudson County Democratic Organization.”

A message from Clean Energy Action Now! (CLEAN):

What’s the real story behind fossil fuel industry efforts to prevent NJ consumers’ switch to clean, safe, affordable electric heating and cooling?

Profits — plain and simple.

Gas companies know going electric is better for your health and your wallet.

But they want to squeeze every cent from consumers by lobbying legislators to limit free choice in energy sources and leave you stuck with outdated, unhealthy fossil fuel options.

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● Average NJ gas customers can save up to 41% yearly on utilities by switching to electric.
● Going all-electric and improving your insulation can save you nearly 70% per year.
● Nationally, gas appliances have been attributed to 12.7% of childhood asthma cases.
● Next year, New Jerseyans can receive up to $8,000 for a heat pump and up to $840 for an induction stove.

Legislators can put consumers first and stand up to gas industry lies and misinformation. Learn how.

—“What are NJ politicians doing with campaign cash they received from Menendez, Daibes?”

—“Sen. Menendez: From smalltime NJ politics to bigtime political controversy” 

—“From gold bars to pricey cars: All the bribes Sen. Bob Menendez has been accused of taking over the years” 

—“Five ways the Sen. Robert Menendez indictment is oh, so very Jersey” 

—“Bribery case against Sen. Menendez shines light on powerful NJ developer accused of corruption” 

—“New Jersey has not always been kind to native sons running for the presidency” 

GO INSIDE THE CAPITOL DOME: From the outset, POLITICO has been your eyes and ears on Capitol Hill, providing the most thorough Congress coverage — from political characters and emerging leaders to leadership squabbles and policy nuggets during committee markups and hearings. We're stepping up our game to ensure you’re fully informed on every key detail inside the Capitol Dome, all day, every day. Start your day with Playbook AM, refuel at midday with our Playbook PM halftime report and enrich your evening discussions with Huddle. Plus, stay updated with real-time buzz all day through our brand new Inside Congress Live feature. Learn more and subscribe here.

IT SURE CAN PAY ITS LAWYER BILLS — “Lakewood schools borrowed millions from New Jersey and still can't pay its bills,” by The Asbury Park Press’ Juan Carlos Castillo and Joe Strupp: “Would you keep loaning millions of dollars if there was little chance of it being paid back? If you’re the state of New Jersey, you apparently would. In this case, the borrower is the Lakewood School District, which says it is so broke it needs to borrow $93 million from the state this year to keep its doors open. That $93 million would be on top of the $165 million the district has borrowed since 2014. It has only managed to pay back $42 million. That would bring the district’s state debt to more than $198 million, an amount unlikely to be repaid anytime soon. The courts and even the state auditor agree that the main reason the district is in ‘severe financial distress’ is because it doesn’t get enough aid from the state.”

—“Lakewood Schools borrow more money from New Jersey than any other district” 

ACHA — “New contracts, more money for consultants on Atlantic City Housing Authority agenda,” by The Press of Atlantic City’s Michelle Bruneti Post: “Jerry Volpe, a purchasing consultant to the troubled Atlantic City Housing Authority, may get another increase in the amount of money he will be paid for his services at Thursday's board meeting. Volpe's company Governance & Fiscal Affairs LLC has been paid more than $400,000 for a year's work in handling procurement for the agency. His work was criticized by former Housing Authority Executive Director Matt Doherty at a public board meeting last month, and two weeks later the board fired Doherty.”

—“Newark school board names new president” 

—“Somerset Hills Regional School District sued for alleged teachers union retaliation” 

—“An inmate has escaped from custody in Burlington County, police say” 

—“[Highlands and Atlantic Highlands] voters approve merging 3 school districts into 1” 

—“Haledon borough administrator and clerk is suspended, pending council discussion” 

—“Montclair reappoints embattled municipal clerk despite heated debate” 

Enter the “room where it happens”, where global power players shape policy and politics, with Power Play. POLITICO’s brand-new podcast will host conversations with the leaders and power players shaping the biggest ideas and driving the global conversations, moderated by award-winning journalist Anne McElvoy. Sign up today to be notified of the first episodes in September – click here.

RAPE KITS — “Thousands of rape kits remain untested, gathering dust in New Jersey hospitals,” by News 12’s Walt Kane: “Imagine being sexually assaulted and getting your attacker to make a recorded confession, only for prosecutors to say it wasn’t enough for them to file charges. A New Jersey woman says that’s what happened to her. And as a result, a Kane In Your Corner investigation finds her rape kit is one of thousands that remain untested, gathering dust in hospitals and storage units across the state … Kane In Your Corner obtained years of records of forensic examinations conducted in New Jersey. According to one survey of rape kits, released by the Office of the Attorney General this year, 1 in 3 rape kits released to law enforcement go untested. There are also wide disparities in testing from one county to another. In Bergen County, where Morrison’s assault occurred, the data shows fewer than 20% of kits turned over to law enforcement were tested, among the lowest rates in the state.”

TODAY I DIDN’T EVEN HAVE TO SPEND MY $8K. I GOTTA SAY, I WAS MIDDLE CLASS ON A GOOD DAY — “Are you in the middle class in New Jersey? Here's the minimum income for a family in NJ,” by The Asbury Park Press’ Dorian Alerte: “ConsumerAffairs did some figuring, using a a calculator from the Pew Research Center and an inflation calculator from the U.S. Bureau of Labor Statistics to come up with the list. The minimum income for a family of four living in New Jersey? $80,163. It's about $2,500 less than it takes to live a middle class life in Hawaii: $82,630. That state tops the list. New Jersey tied for third on the list with Connecticut, which trailed only Hawaii, New York and Washington, D.C., where the minimum middle class annual income is $81,396.”

IF ONLY REGULAR PEOPLE PAID THIS MUCH ATTENTION TO COUNTY CHAIRS — “How a mysterious chair perched on a N.J. rooftop became a social media sensation,” by NJ Advance Media’s Jackie Roman: “On the way to the Jersey Shore, off Route 47 in Cape May County, is a weathered house with a missing roof and visibly exposed attic that has captured the imagination of thousands of passersby … over the years, beachgoers stuck in traffic in Dennis Township have become captivated by the miscellaneous furniture and personal belongings that lay untouched on the home’s exposed top floor, which can be seen from the roadway. One item in particular — a precariously balanced chair dramatically perched on the very edge of the decaying floorboards on top of the house — has sparked intense curiosity. There is a “Chair Watch” Facebook group with 5,500 members dedicated to keeping an eye on the mysterious chair and speculating when it might fall.”

—“[County College of Morris] must offer to rehire 5 ousted professors, ruling says” 

—“Dolphin euthanized after washing up on Jersey Shore beach” 

—“How a mysterious chair perched on a N.J. rooftop became a social media sensation” 

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