What to Know
- The Democrat-led New Jersey state government is two days away from the deadline to approve the state's budget
- Gov. Phil Murphy said Thursday he was “not happy” about a possible shutdown
- The issue this year is centered around taxes, including a millionaire's tax and a sales tax hike that Murphy, a Democrat, wants to impose
The countdown to a looming government shutdown in New Jersey approaches the two-day mark.
The Democrat-led state government has a midnight Saturday deadline to enact a balanced state budget, without which state parks, public beaches and government offices would face a shutdown.
On Thursday, Gov. Phil Murphy, who said he was "not happy" about a possible shutdown, convened his Cabinet in Trenton and said he reviewed scenarios, including a shutdown, with them. He also held a news conference at a Trenton school and said he was willing to compromise, though he shot down a recent counterproposal from lawmakers.
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Negotiations between Murphy and Democratic Assembly Speaker Craig Coughlin and Senate President Steve Sweeney have continued without any deal since legislators sent the freshman governor, a former Wall Street banker, a $36.5 billion budget proposal.
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Murphy is pushing for a millionaire’s tax and a sales tax hike to assist in funding a spending plan.
To pay for more school aid, a higher transit subsidy and a bigger pension payment, Murphy wants a hike on income taxes for people earning more than $1 million, from 8.97 percent to 10.75 percent.
Additionally Murphy offered phasing in over a two-year period an increase in the sales tax from 6.625 percent to 7 percent, as well as increasing business taxes, as long as the rate stays below the highest-in-the-nation levy of 12 percent.
But legislative leaders and fellow democrats are not backing down saying they support the legislature's version of the budget.
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The budget that lawmakers sent Murphy has a two-year tiered hike in business taxes, from 9 percent to 11.5 percent on firms making from $1 million to $25 million, and to 13 percent on businesses making more than $25 million.
If the budget is not passed by midnight Saturday, state parks and beaches will close Sunday, with Motor Vehicle offices shuttering Monday.
If a budget is not enacted casinos may remain open for up to seven days.
If the government does shut down, it will be the second year in a row. Last year, under then-Gov. Chris Christie, the government shut down in large part because of Christie's insistence that the state's biggest health insurer help pay for opioid addiction treatment.
