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http://www.pressofatlanticcity.com/news/newjersey/story/6489847p-6341670c.html
http://www.pressofatlanticcity.com/news/newjersey/story/6489847p-6341670c.html
New Jersey governor shuts down state government in budget impasse
By TOM HESTER Jr., Associated Press Writer
Published: Saturday, July 1, 2006
Updated: Saturday, July 1, 2006
TRENTON, N.J. (AP) - Gov. Jon S. Corzine closed the state government Saturday amid a bitter dispute with fellow Democrats in the Assembly over his plan to increase the sales tax, threatening to shutter beaches, parks and possibly casinos in the coming days.
After Saturday's constitutional deadline to adopt a new balanced budget passed without agreement, Corzine signed an executive order just after 9:30 a.m., a grim climax to weeks of budget squabbling among Democrats who control state government but haven't been able to agree on a budget bill.
"It gives me no joy, no satisfaction, no sense of empowerment to do what I'm forced to do here," Corzine said.
Within minutes of Corzine signing the order, road construction projects were required to begin winding down. Motor vehicle offices were to close at noon. About 45,000 state employees were immediately furloughed. State courts were closed for anything but emergencies.
State parks, beaches and historic sites will slowly close in the coming days, with all closed by Wednesday. Beaches were expected to stay open through the July Fourth holiday, preventing a more dramatic effect on New Jerseyans' plans for the long weekend.
All horse racing in the state was expected to conclude at 6 p.m.
The order allows Corzine to keep 36,000 state employees working without pay. That will keep the state's prisons, veterans homes and psychiatric hospitals open. Child welfare, state property protection, transportation and environmental safety functions will also continue.
Atlantic City's 12 casinos could be forced to close because they require state monitoring, though the casino industry is challenging that in court.
July welfare checks have already been mailed, said Corzine's chief counsel, Stuart Rabner. But he said next month's cannot be sent unless a budget agreement is reached.
The dispute centers on Corzine's determination to raise the state sales tax from 6 percent to 7 percent to help close a $4.5 billion budget deficit.
Corzine sees the increase as a vital step toward providing reliable annual revenue, but most Democrats in the Assembly - the lower house of the state Legislature - and several Senate Democrats say the plan is unnecessary. Led by Assembly Speaker Joseph Roberts Jr., D-Camden, they offered $741 million in spending cuts and $917 million in other tax hikes to avoid a sales tax increase, but Corzine rejected many of their ideas.
Opponents have questioned the need for a sales tax increase, predicting voter backlash and demanding that any increase be reserved for property tax reform.
Corzine complained that budget efforts "have not resulted in the sort of responsible plan the public has a right to expect."
Still, Corzine accepted opponents' proposals for increased corporate taxes, increased tax revenue estimates. He killed hospital bed, alcohol and water taxes they opposed. Corzine also accepted a compromise to use half the money earned by a sales tax increase for property tax relief.
Despite such maneuvering, Corzine on Saturday said both sides have "some very real, very basic and very challenging differences to resolve."
No formal negotiations were scheduled for Saturday.
"My door has been and remains open," Corzine said.
The state constitution requires a balanced budget by July 1, but the deadline has been missed four times in five years. Nothing happened when deadlines were missed before because the state never went past the morning of July 2 without an adopted budget. Without one, the state has no authority to spend money.
Corzine said the lack of any imminent agreement gave him no alternative.
Rabner said the administration will monitor the closures and adjust as needed.
"We will continue to re-evaluate," he said.