The basics:

• Murphy says state must prepare for potential NJ Transit strike
• Calls Newark airport delays ‘unacceptable,’ urges manpower fix
• Warns against federal Medicaid cuts hurting working families
• Says NJ budget is strong — but external risks loom

During a gaggle with reporters following the Netflix groundbreaking May 13, Gov. Phil Murphy was asked about several notable topics happening simultaneously in the Garden State.

Of course, at the top of that list is NJ Transit and a potential work stoppage as soon as Friday – as negotiations between the agency and engineers’ union (Brotherhood of Locomotive Engineers and Trainmen – BLET) remain in a stalemate. The two sides met in Washington, D.C., May 12 for mediation.

“I wasn’t in the room,” Murphy told reporters. “This is NJ Transit with the union itself. I think both sides thought it was a quote-unquote ‘productive meeting.’”

He said that as talks continue between the sides, and with the clock ticking, the state has to prepare for the worst-case scenario – while hoping for the best. The governor also noted that the NJ Transit has struck agreements with all of its unions, including a deal reached last week with Amalgamated Transit Union (ATU), its largest union.

“This is a pro-union house. I’m hoping and praying that we can find the common ground that we need to find to avoid a strike,” said Murphy.

Ready for takeoff?

The governor was also asked about another top-of-mind issue in the state generating a lot of unwanted headlines and attention, the mess at Newark Liberty International Airport.

Murphy described the situation as unacceptable. He gave U.S. Transportation Secretary Sean Duffy a shout-out for engaging on all issues — whether it be EWR, Interstate 80 sinkholes and more – and noted that he supports Duffy’s long-term plan for the Federal Aviation Administration and the nation’s air traffic control system.

“We need a surge in manpower in the near and immediate term,” said Murphy. “This swing from Long Island to Philadelphia – we were led to believe it was a positive. At least so far, this has turned out to be anything but a positive. It’s unacceptable. I think everybody agrees with that. So, we’re on at the highest levels with the Trump team, with the Port Authority, with the United Airlines CEO, with the airport operations. It’s not for lack of having access.

“This has got to get fixed. I’ve heard no evidence to the contrary that there’s a safety issue – but there’s a huge mismatch of supply/demand for flights that want to take off and land in Newark versus the manpower that can support that. And that’s got to get fixed; it’s got to get fixed ASAP.”

Cutting Medicaid

Murphy was asked about the federal budget negotiations and the potential Medicaid cuts that could result from the bill.

“I should say – be careful. I would beg all members of Congress, regardless of what party you are in, to not leave those who have nowhere else to turn behind. And you see a lot of fancy rhetoric right now,” said Murphy. “Be careful, everybody. Read through that rhetoric. Statements like – we won’t ever cut anyone, for someone who’s eligible. Well, let’s figure out what that means. Or we want to cut fraud, waste and abuse, which is a talking point. Nice try guys.

“Either you’re on the side of working families; you’re on the side of the folks who need government the most – or you’re not,” said Murphy. “This is not a gray area. This is black or white. I would encourage members of the House and Senate – on both sides of the aisle; we have three Republican members of the House who have said some good things lately. I hope that their words match their votes.

Either you’re on the side of working families; you’re on the side of the folks who need government the most – or you’re not. This is not a gray area.
– Gov. Phil Murphy

“But literally, if the three of them vote in the right way – it’s over, in terms of threats to Medicaid – at least in this round,” Murphy continued. “So, I would pray that everybody sees the urgency here and does the right thing.”

NJ budget

“Any update on the state budget negotiations, process – especially given the federal conditions?” NJBIZ asked.

“We’re watching the federal stuff very closely,” said Murphy. “Our numbers are holding up. But the federal stuff – it only underscores the need for a very responsible budget with a very fat surplus. Because we could be going into some unchartered waters as a country – and even in the global economy. If you said to me, how do you feel about within the four walls of New Jersey? I feel really good.

“We’re not perfect. We still have work to do. But I feel really good. It’s the volatility from the outside that concerns me,” Murphy said.

NJBIZ followed up – referencing Murphy’s Budget Address when he said that impending federal cuts could lead to a break the glass moment – and whether we are there yet.

“We’re not breaking the glass. But we’re watching things very, very carefully,” said Murphy, noting that he has a great relationship with the Assembly Speaker Craig Coughlin and Senate President Nick Scutari. “Which is a huge asset for all of us.”