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Yale’s Provost, Noted Psychology Scholar, Is Named President of the University

Thursday, November 8, 2012


William J. Palatucci, one of Gov. Chris Christie’s closest friends and political advisers, said Thursday that he was stepping down as a senior executive at Community Education Centers, the politically connected company that dominates the troubled system of halfway houses in New Jersey.

The resignation comes in the wake of widespread criticism of Community Education, particularly by Democratic state legislators, who said the company’s halfway houses, which are as large as prisons, were dangerous and poorly supervised.

Mr. Palatucci’s role at the company became a flash point after The New York Times published a series of articles on escapes, violence and drug use at the halfway houses. The articles also described poor government oversight across the system, which handles thousands of inmates annually in New Jersey.


Political analysts said Mr. Palatucci’s departure signaled that Mr. Christie, a Republican, wanted to avoid a potential liability before he began his campaign for another term next year or weighed running for the White House in 2016.


“It’s better not to have him associated with an enterprise that has become very controversial and very damaging,” said Ross K. Baker, a political science professor at Rutgers. “Any possible embarrassment that could result with his continued association with the halfway houses is something that they want to avoid.”

Mr. Palatucci, a lawyer who has worked as a registered lobbyist, said he had no definite plans and was leaving “to do something different,” according to a spokesman, Eric Shuffler.

Mr. Shuffler said Mr. Palatucci did not resign because of political considerations. “One has nothing to do with the other,” Mr. Shuffler said.

Mr. Christie told reporters: “I wouldn’t read anything into that in terms of politics. No. I think it’s just Bill has decided it’s time for him to move on to another opportunity, and that’s what he’s doing.”

When Mr. Christie ran for governor in 2009, Mr. Palatucci served as a senior campaign adviser while continuing to work at Community Education. He was also co-chairman of Mr. Christie’s inauguration committee in 2010.

New Jersey has been a trailblazer in setting up a network of privately run halfway houses, which resemble prisons but have little of the security. They are meant to rehabilitate inmates, but are often chaotic, filled with contraband and gang activity, and they offer shoddy treatment, The Times found.

After the articles were published in June, Mr. Christie, who had been a strong supporter of Community Education, vowed to step up inspections at the facilities.

In July, the Legislature held two days of hearings on the system that focused heavily on Community Education. While Mr. Palatucci was not called to testify, many Democratic legislators wanted to know whether his relationship with the governor had benefited the company.

Last year, Community Education was the only bidder for a $130 million contract awarded by Essex County, whose chief executive is one of Mr. Christie’s most important allies. That deal was heavily criticized as being weighted in Community Education’s favor.

Mr. Palatucci has long been prominent in Republican circles. He was a major fund-raiser for President George W. Bush and used his connections to help Mr. Christie, his former law partner, secure a position as the United States attorney for New Jersey.

When Mr. Palatucci joined Community Education in 2005, the company already had deep ties to Democratic politicians in New Jersey and was a major political donor.

Mr. Palatucci offered entree to Republicans in New Jersey. He also played a key role as Community Education sought to expand to Alabama and other states.

That national expansion has faltered, leaving the company teetering on the edge of bankruptcy in recent years.

Source: www.nytimes.com
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