| 
			 Christie, a charismatic conservative and an early favorite in the 
			upcoming Republican race for the White House in 2016, was re-elected 
			in a landslide victory last November. But a pair of scandals coming 
			in the first weeks of the year have put him on the defensive. 
 			Two sets of emails last week appeared to show that Christie's aides 
			had orchestrated lane closures last September in a stretch of 
			highway leading to the George Washington Bridge, which spans New 
			Jersey and Manhattan, and lied about it.
 			Christie has denied any knowledge of a scheme to snarl traffic to 
			wreak political payback against the Democratic mayor of the city of 
			Fort Lee, New Jersey, and said there is nothing in the emails to 
			suggest he had any direct knowledge of it.
 			While Christie is likely to use his State of the State speech to 
			address these challenges, he is also expected to tout his 
			accomplishments and set out priorities for the year. 			
			 
 			Those could include an across-the-board tax cut, an idea he proposed 
			in 2012, which has been delayed as revenue has fallen below 
			expectations, as well as ways to generate more job growth.
 			The state's economy has seen signs of improvement over the last 
			several months. Its unemployment rate experienced its largest 
			monthly drop on record in November, dropping by 0.6 percentage point 
			to 7.8 percent, according to the state labor department.
 			Revenue has also been recovering steadily. In the first five months 
			of fiscal 2014, which began on July 1, New Jersey took in 7.9 
			percent more revenue — from income, sales, corporate and other taxes — than for the same period the year before. But that's still 1.2 
			percent, or $98 million, under budget.
 			
            [to top of second column] | 
            
			 
			Still, the state's fiscal situation, and Christie's ideas for 
			improving it, could be overshadowed by his response to the scandals 
			and speculation about his political future.
 			Since taking office four years ago, Christie — a former federal 
			prosecutor — has built a national reputation as a Republican capable 
			of winning bipartisan support for his conservative priorities, like 
			spending cuts, while repairing New Jersey's reputation for 
			corruption and graft.
 			A prolific fundraiser for Republicans across the country, Christie 
			has taken on a leadership role with the Republican Governor's 
			Association.
 			But the brewing scandals threaten to tarnish that reputation and 
			Christie's national appeal.
 			Democrats, who control both houses of the state legislature, have 
			called a special session to address the traffic scandal.
 			Meanwhile, a New Jersey Democrat has requested a federal probe into 
			the use of storm relief funds for an ad campaign, intended to draw 
			visitors back to the Jersey Shore, that featured Christie as he was 
			seeking re-election.
 			(Additional reporting by Hilary Russ; editing by Eric Walsh) 
			[© 2014 Thomson Reuters. All rights 
				reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published, 
			broadcast, rewritten or redistributed. 
			
			 |