New Jersey Budget Deal Reached After Six-Day Shutdown

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TRENTON, N.J. (AP) – New Jersey’s governor and lawmakers reached a deal on a new state budget Thursday, six days after state government shut down, a high-ranking Statehouse official said.

“They’ll be announcing the final elements later this afternoon,” said the official, who spoke on condition of anonymity because the governor will announce the deal.

The deal calls for using half the $1.1 billion to be raised by a sales tax increase to lower property taxes, and using all of the revenue for that purpose next year, a different high-ranking Statehouse official said, speaking on condition of anonymity.

The deal ends a six-day government shutdown that closed Atlantic City casinos and threw thousands of people out of work.

The problem started when the Legislature missed its July 1 constitutional deadline to pass a budget amid a fight with Corzine over his proposed sales tax boost.

Without a spending plan, Corzine ordered state offices shut down Saturday and all non-essential state government operations closed, and he furloughed more than half the state’s employees. Only about 36,000 people in vital roles such as child welfare, state police and mental hospitals remained on the job, and they were working without pay.

State parks and beaches also were closed Wednesday because of the lack of staff.

Under the deal, the sales tax will increase from 6 percent to 7 percent. Democrats who control the state Assembly had opposed the tax increase, estimated to cost the average New Jersey family $275 per year.


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