Christie, Legislature on Collision Course to Government Shutdown

By Mark J. Magyar, NJ Spotlight

If Gov. Chris Christie and Democratic legislators stick to their guns, New Jersey could be headed to its second state government shutdown in six years on July 1.

Christie has vowed not to negotiate any state budget with the Democratic-controlled Legislature that does not include a tax cut.

But Democratic legislative leaders made it clear yesterday that the only tax cut Christie might get before June 30 would be a direct property tax cut funded by an $800 million income tax increase on millionaires, and that might not happen because Democrats are divided over whether to give Christie the opportunity to veto a millionaire’s tax for the third year in a row.

What Democrats agree on is that the $183 million Christie has earmarked for an income tax cut will be set aside in the budget in a special surplus account dedicated to property tax relief. The Legislature would appropriate these funds only if the Republican governor is on track to hit his aggressive $32.02 billion revenue projection. That decision would not be made until December or later, Democratic legislative leaders said, depriving Christie of a tax cut to trumpet in August at the Republican National Convention in Tampa, where he could be a leading candidate for the GOP vice-presidential nomination.

Christie reiterated Wednesday at a town meeting in Atlantic County that he would “not negotiate a budget with the state Legislature unless they cut your taxes” and noted that he has asked his Cabinet for contingency plans for a government shutdown in the event of a budget impasse.

Senate Budget Committee Chairman Paul Sarlo (D-Bergen) dismissed Christie’s threat yesterday as just “something he said at a town hall” and added that there would “not be a government shutdown, at least from the Legislature.” “We’re approving his budget, with his revenue numbers, with his $183 million set aside for a tax cut if he hits his revenue projections,” Sarlo stressed. “If the numbers aren’t there, he won’t get it.”

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