NJCAEF Accomplishments and Highlights — 2000
NJCAEF was originally called the Citizen Policy & Education Fund of NJ (CPEF) until May 2004, when the name was legally changed, but our mission and programs remain the same.
Overview
In just one year, we stopped unfair rate hikes, signed major agreements to improve community reinvestment, informed organizations concerned about quality and access to health care, educated and counseled tens of thousands about their rights as consumers, and mobilized additional thousands to participate as citizens and vote.
Through our issue campaigns and empowerment projects, CPEF also initiated new research and education efforts, on issues from paid family leave to predatory lending, so we can continue this record of success into 2001.
Community Reinvestment and Rehabilitation
Financial Education Center Opened in Newark
Adding to our full time offices in Hackensack (Main Office), Highland Park (Central Jersey), Collingswood (South Jersey), and Point Pleasant (Shore), CPEF opened a Financial Education Center in downtown Newark as the base of operations for the next stage of this exciting project. The Center offers workshops to help residents better understand basic financial services, including ones on a variety of basic banking, money management and consumer education topics. Curriculum topics include Protecting Your Money, Keeping the Money You Make, Getting Credit and Keeping Your Credit, Predatory Lending, and Investment Strategies.
Thousands of First Home Buyers Assisted
CPEF opened the door to first-time homeownership to 7,000 families in New Jersey, through our seven-year old Loan Counseling Program. Families get assistance with budgeting, credit, and Community Reinvestment Act mortgages. With 3500 families actively involved in this and our home improvement counseling program, the project has opened new offices in Elizabeth and downtown Newark, bringing the number of counseling office to 18. We began an innovative partnership with Prudential Property and Casualty (PruPAC) to offer up to 37% discount to CPEF-counseled homebuyers for homeowners’ insurance, a first-in-the-nation pilot project.
Women’s Housing Initiative Outreach Doubled
CPEF partnered with the McAuley Institute, a national faith-based, non-profit organization, to double the number of Women’s Housing Initiatives held in New Jersey. This support allowed CPEF to hire a full time coordinator for this program. As a result, CPEF organized the largest number of events ever in the year 2000. Five seminars were held around the state, in Elizabeth, Newark, Asbury Park, West Orange and East Orange. Almost 1,000 people, mostly female heads of households, attended these standing room only events to hear new home owners talk about the challenges they overcame to purchase a home of their own. These inspirational tales encouraged the majority of the audience to enroll in CPEF’s Loan Counseling and Credit Repair Program. We developed a new mentoring program "Been There, Done That" to match women that have purchased homes through us with women who are entering counseling and face long-term credit repair. Twenty-five members have been trained for the program.
Campaign Against Predatory Lending Initiated
In August, CPEF kicked-off a major education campaign targeted at seniors and low-income residents to prevent abuses of predatory lenders, organizing testimony at three public hearings conducted by the New Jersey Department of Banking and Insurance to investigate abusive lending practices throughout the state. CPEF called upon New Jersey’s regulatory agencies and policymakers to take strong action against predatory lenders.
Unprecedented Merger Challenged
In November, CPEF filed a challenge protesting MetLife, Inc.’s application to acquire Grand Bank, a one-branch national bank in Monmouth Junction, New Jersey, and to become a financial holding company, as well as a bank holding company. As the first application of its kind to be filed since the Financial Modernization Act was passed, CPEF submitted the challenge requesting more information on the business and community reinvestment plans for the new entity, concerned that the best interests New Jersey consumers were not being taken into consideration. This merger has been held up as a result of the challenge, with Federal Regulators demanding more information from the bank.
Bank with Poor Practices Picketed
To educate the community, CPEF organized a series of eight informational pickets at various branches of Hudson United Bank (HUBCO), which refused to meet with community groups, including the Black Ministers Council of NJ, to discuss its poor lending record to minorities. Fortunately for New Jersey consumers however, the bank was not able to complete its announced merger with Dime Savings Bank, preventing this bad bank from getting any bigger–for the moment.
Major CRA Agreement Signed
In December, CPEF negotiated and signed a Community Reinvestment Act (CRA) Agreement with Fleet Bank, committing $1.22 billion to New Jersey’s low and moderate-income consumers and small businesses over the next four years. Among other things, the new agreement, effective upon Fleet’s acquisition of Summit Bank, addresses issues such as below-market rate loan products for low and moderate income individuals living in NJ; community and economic development and grant funding; bank fees; branch closures; and corporate culture. In addition, the Agreement includes a clause on predatory lending, making Fleet the first bank to step forward and pledge to neither make nor purchase predatory loans.
Lead Poisoning Prevention
Community Leaders and Homeowners Educated on Lead Poisoning
CPEF trained over 40 Newark community leaders and agency staff on lead poisoning prevention in 2000. This adds to our ever-growing infrastructure of lead poisoning prevention advocates throughout the state. In addition, as part of our efforts in increase abatement, CPEF held ten Lead Abatement Funding Forums four new cities (Newark, East Orange, Paterson and Trenton) and held repeat events in those as well as in Irvington. These forums have reached over 200 homeowners and landlords who failed to abate a lead problem with information about this financing option.
Newark Lead Inspection on Request Policy Started
After revealing the poor state of lead inspections in Newark, the Health Department of the City of Newark agreed to adopt a "lead inspection on request" policy to prevent lead poisonings. CPEF has been working with over 60 Newark-based organizations to focus on the prevention of lead poisonings, as opposed to the current practices to merely respond and treat the hundreds of cases a year in the city. The City Council, however, has not made the policy law and the Health Department is not aggressively advertising the availability of inspections. As a result, CPEF is continuing its effort to make this program a reality.
Consumer Education and Outreach
Tens of Thousands Educated about Energy
As part of our extensive outreach effort to educate consumers on their rights and opportunities under energy deregulation, we conducted 928 presentations this year, bringing the project total to 1250 since its inception. We have reached over 41,000 people with energy education information. Energy education staff members contacted more than 3100 additional organizations to make them aware of this opportunity. More than 50% of our presentations, targeted to organizations that represent low and moderate-income residents, were conducted in urban areas of the state. Members of over 365 senior groups and over 100 parent organizations received information about energy choice.
Education Initiative on Telecommunications Launched
Following in the footsteps of the energy education campaign, CPEF kicked off a telecommunications education effort. Customers at these presentations learn how to understand their phone bills, make smart telecommunications decisions and protect themselves from fraud. CPEF we have conducted 35 presentations since November 2000, reaching 1,305 participants.
Utility Rates and Service
Major Savings Negotiated for Oil Heat Customers
Over 6,000 members saved as much as 17% on their annual heating costs through our Oil Group, which pools buying power to negotiate for lower oil prices. This proved especially useful during the times of large price hikes in 2000.
Telephone Rate Increase Defeated
Facing mounting public outrage, telephone company Verizon withdrew its proposal at the Board of Public Utilities to be deregulated. The plan specifically called for the doubling of the basic cost of local phone rates. CPEF organized consumer, senior, low-income family, and community groups to respond to this rate hike, turning out a wide range of organizations and individuals to public hearings in Newark, Trenton, and Marlboro. Verizon explicitly stated the consumer opposition as the reason for its withdrawal.
Universal Energy Service Advocated
CPEF developed a proposal for a comprehensive Universal Service Fund for low-income customers, as part of the Board of Public Utilities investigation into current social programs. At five hearings across the state, CPEF spoke out and organized the testimony of many leaders, including those of the Paterson Task Force for Community Action, Americans for Democratic Action, the Clearbrook Energy Committee, the IFPTE Retirees Local 195, and the Coalition of Union Retiree Organizations, as well as national utility expert John Howat of the National Consumer Law Center. When the BPU failed to act, CPEF continued to draw attention to the need for a solution. Joined by Rev. Reginald Jackson of the Black Ministers Council, New Jersey Citizen Action Board Co-chair Wayne Smith, Irvington City Council President and others called on the BPU to end its foot dragging.
Increased Rates Opposed
CPEF also spoke out against rising natural gas prices and attempts to further deregulate the gas industry. Our concern about the impact of higher and unpredictable gas prices on working families and seniors appeared in more than 25 news articles. CPEF also spoke out about rising rates in cable television service, which have gone up more than four times the rate of inflation since deregulation in 1996.
Access to Quality Health Care
Uninsured Problem Spotlighted
Continuing our research and education efforts on quality health care for all, CPEF coordinated religious, senior, labor, and low-income advocates to focus additional attention on the needs of the uninsured. We held several press events to release new documentation about the extent of the problem, and which featured actual uninsured individuals to tell their stories. Using a third of the money garnered from the state’s tobacco lawsuit settlement, Governor Whitman signed the FamilyCare Health Expansion Act in July, offering over 125,000 working poor adults an affordable health care package. In one of the largest expansions of the federal Child Health Insurance Program, parents with incomes of up to 200% of the poverty level are eligible.
Oversight of Hospital Takeovers Strengthened
CPEF continued its research and education about the corporatization of health care, with particular concern about the development of hospitals converting from nonprofit to for-profit status. CPEF held community meetings at locations where a hospital was slated to be taken over, to go over what the concerns might be. After four years, three legislative sessions, and two gubernatorial vetoes, the passage of the Community Health Care Assets Protection Act put into place strong oversight when community hospitals change ownership, protecting public accountability, quality of care, and millions of dollars of charitable health care dollars. Incorporating many of the issues raised by CPEF over the last three years, the new law prevents for-profit corporations from siphoning nonprofit dollars for private gain, and would stop hospital takeovers that would serve to harm community health care access to services.
Hundreds of Millions of Nonprofit Health Care Dollars Protected
After years of denying their status and history as a nonprofit under New Jersey law, Horizon Blue Cross Blue Shield of New Jersey put forward a plan acknowledging their debt of over 60 years of public investment through tax breaks and regulatory benefits. The company, one of the state’s largest health insurers, agreed to a plan to protect the full value of the company--possibly more than half a billion dollars--and place it in an independent charitable foundation dedicated to community health purposes, as a condition of any conversion to for-profit status. This represented a remarkable turnaround from a few years ago, when CPEF organized a coalition of over 80 organizations that successfully opposed a merger plan where an out-of-state, for-profit company would take over the business of Blue Cross without paying a penny.
Candidates Forced to Respond on Health Issues
A major focus for CPEF in preparation for Election Day was to organize forums that educate voters on the issues and spell out the candidates’ positions on federal social and health security issues. Among other events, CPEF sponsored a bipartisan May Primary Candidates’ forum in the Seventh Congressional District; an October Candidates’ Forum in the Twelfth Congressional District; and in October a Senior Issues Forum in Westfield.
Long Term Care Raised as Election Issue
NJ Citizen Action and the Long Term Care Campaign identified candidates who committed to working towards a comprehensive long-term care solution. On October 4, Maryanne Connelly (D-7th), Jon Corzine (D-Senate), Bob Franks (R-Senate) and Rush Holt (D-12th) revealed their signatures on the Long Term Care Pledge.
Paid Family Leave
Birth & Adoption, Family Medical Leave Initiative Started
CPEF worked with allied organizations to research and focus attention on the problem that many families having using their rights under the Family and Medical Leave Act. With a majority of working families unable to take leave because of a lack of income, we have worked with various experts to develop potential programs to deal with the issue, and we have begun identifying people who can tell their personal stories.
Democracy and Campaign Finance Reform
Thousands of Voters Educated and Mobilized
From registering voters at housing events to handing out voter guides at train stations the week before the election, CPEF took a key, yet nonpartisan, role in educating and mobilizing thousands of citizens to vote, on behalf social and health security issues. We coordinated coalitions of organizations engaged in voter education activities, in the 7th and 12th districts, and held a series of actions and events to raise our issues. Over 75,000 get-the-vote-out pieces were mailed and passed out by hand, including voter guides for US Senate candidates.
Parsons Scandal Cash Connection Exposed
As a result of the scandal regarding the auto inspection emissions test that caused major delays for New Jersey motorists, CPEF established a People’s Panel that held hearings in Clifton and Neptune that heard complaints about Parsons, the sole bidder that won the multi-million dollars DMV contract. CPEF released a report detailing the campaign contributions from key Parsons executives and state officials, and posted that and other pertinent information on a special website. Scores of concerned citizens, private garage owners and disaffected motorists discussed the connection between privatization and campaign finance reform.
Campaign Finance Reform Organizer Hired
CPEF’s work on campaign finance was stepped up when we hired an organizer to coordinate our "Fair And Clean Elections" campaign. To put a new FACE on NJ politics, this effort is now in full swing, with dozens of member and allied organizations working to educate New Jersey citizens about the model of Clean Money reform in Maine, Arizona, Vermont and Massachusetts. CPEF partnered with the National Institute of Money in State Politics and released a report detailing campaign contributions to candidates in the 1999 Assembly races. CPEF and the Institute also issued a "Drug Money" study that showed the connection between key political leaders and major pharmaceutical companies. We were the sole organization to testify against increasing spending limits for state legislative and Gubernatorial elections.
Open Records Act Passed in Assembly
Working with journalist and good government organizations, CPEF worked to spotlight problems with New Jersey’s outdated and restrictive laws that govern access to public records, and to identify solutions. In addition, NJCA participated in the formation of the NJ Foundation for Open Government, a technical support network for citizens and advocates who need assistance accessing public records.