Carla Katz

Carla A. Katz (born 1959) served as president of Local 1034 of the Communications Workers of America from 1999 until 2008, representing 16,000 public and private sector workers in the state of New Jersey. Revelations of a romantic relationship with New Jersey Governor Jon Corzine raised questions of whether the relationship improperly influenced contract negotiations between Katz's union and the state of New Jersey.

Early life and career

Katz was born to Arnold and Angelina Katz and was raised in Paterson, New Jersey with her brother Allan and sister Genise. Arnold Katz worked as a factory laborer in Paterson before getting a sales job and relocating his family to Burlington County. He later served as mayor of Edgewater Park in 1982 and 1983."Out of a shadow: Union boss talks about her life and career, but not Jon Corzine", "The Star-Ledger", September 4, 2005.] ["South Jersey Deaths", "The Philadelphia Inquirer", June 23, 1991.]

After finishing high school, Katz attended Burlington County College, Boston University, and Johns Hopkins University, before eventually obtaining a bachelor's degree in labor studies from Rutgers University in 1981. She also received a master's degree from Rutgers. A year after graduating from Rutgers, she started as an organizer for the CWA, becoming president of Local 1034 in 1999. She married Lawrence McKim, an artist and high school teacher, and they settled in Alexandria Township, New Jersey, where they raised two children, Montana and Cooper. Katz and McKim divorced in 2001.

Relationship with Corzine

Katz first met Jon Corzine in the spring of 1999, when he was running for the United State Senate. As Katz later recalled, Corzine offered her a job on his Senate campaign, but she declined the job offer. [Adams, Cindy. [http://www.nypost.com/seven/06062007/columnists/jons_ex_tells_all_columnists_cindy_adams.htm "Jon's Ex Tells All"] , "New York Post", June 6, 2007. Accessed May 31, 2008.] Corzine and Katz were soon dating, appearing in public as a couple in early 2002, shortly after Corzine's separation from his wife Joanne. (The Corzines divorced the following year.) Katz lived with Corzine at his apartment in Hoboken from April 2002 until their breakup in August 2004. [http://www.nytimes.com/2007/05/23/nyregion/23carla.html "Romance Over, Union Chief Has Corzine's Number"] , "The New York Times", May 23, 2007. Accessed May 31, 2008.]

After Corzine's breakup with Katz, their lawyers negotiated a financial arrangement in November 2004. According to later press accounts, the settlement for Katz exceeded $6 million, including a large lump sum of cash (in part used to buy a $1.1 million condominium in Hoboken), a college trust fund for her children, and a Volvo sport utility vehicle. In December 2004, Corzine also forgave a debt of $470,000, a loan that he had provided Katz in 2002 so that she could buy out her ex-husband's share of their home in Alexandria Township. [ [http://www.nytimes.com/2005/08/04/nyregion/04corzine.html "Corzine Gave $470,000 Loan to Head of Union"] , "The New York Times", August 4, 2005. Accessed May 31, 2008.]

Aftermath of relationship

In the summer of 2005, when Corzine was running in the New Jersey gubernatorial election, news first emerged of his previous relationship with Katz and the financial package she received after the breakup. Corzine was elected despite the scandal. After Corzine was sworn in as governor in January 2006, Katz maintained close contact with him. In the fall of 2006, during an impasse in contract negotiations between the Corzine administration and the state's seven major state employee unions (including the CWA), Katz contacted the governor by phone and e-mail, personally lobbying for a renewal of the negotiations.

A state ethics panel, responding to a complaint from Bogota mayor Steve Lonegan, ruled in May 2007 that Katz's personal contact with Corzine during labor negotiations did not violate the governor's code of conduct. Separately, New Jersey Republican State Committee Chairman Tom Wilson filed a lawsuit to release all e-mail correspondence between Corzine and Katz during the contract negotiations. On May 30, 2008, New Jersey Superior Court Judge Paul Innes ruled that at least 745 pages of e-mail records should be made public, but Corzine's lawyers immediately appealed the decision. [ [http://www.nytimes.com/2008/05/31/nyregion/31corzine.html "Judge Rules That E-Mail by Corzine Is Public"] ."The New York Times", May 31, 2008. Accessed May 31, 2008.] [ [http://www.judiciary.state.nj.us/decisions/Brown_v_Carla_Katz080530.pdf Opinion of Judge Innes in Wilson v. Brown] , New Jersey Superior Court, Docket No. MER-L-1297-07, May 29, 2008. Accessed May 31, 2008.]

Despite Corzine's pledge that he had ended all financial dealings with Katz and her family before taking office in 2006, in September 2007 it was reported that Rocco Riccio, who is married to Katz's sister Genise, had received $15,000 from Corzine after being forced to resign from a position with the New Jersey Turnpike Authority. [ [http://www.nj.com/news/index.ssf/2007/09/corzine_gave_15000_to_his_exgi.html "Corzine gave $15,000 to his ex-girlfriend's brother-in-law"] , "The Star-Ledger", September 2, 2007. Accessed July 9, 2008.]

Katz enrolled in Seton Hall University School of Law in 2004, earning her law degree in May 2008. [http://www.nj.com/news/ledger/index.ssf?/base/news-13/121549222685860.xml&coll=1 "CWA ousts Katz over union finances"] , "The Star-Ledger", July 8, 2008. Accessed July 8, 2008.] She has also been active as a lecturer at Rutgers University and contributes to the "NJ Voices" blog on NJ.com. [ [http://blog.nj.com/njv_carla_katz/about.html "Carla Katz: About the Author"] NJ.com. Accessed May 31, 2008.]

On July 7, 2008, Katz was removed from the presidency of CWA Local 1034 for financial improprieties after a unanimous vote of the union's national board. In a press release, the board stated: "An extensive internal review revealed probable cause to believe that the local is engaged in ongoing financial malpractice, the misappropriation of union funds, a failure to comply with state and federal law, as well as the CWA constitution, and the suppression of dissent. The CWA national executive board has determined that it has no choice but to take this action to protect the rights and resources of the members of Local 1034." A temporary administrator has been appointed to oversee Local 1034, pending the outcome of a hearing on July 22.

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