133:
356:, Corzine had a 44% approval rating, his highest since January 2006. The poll also indicated that 71% of respondents disapproved of the legislature's handling of its job. According to Richards, "New Jersey voters clearly blame the state legislature for the budget crisis, and say the property-tax relief that the legislature insisted on in the compromise is more politics than real reform." Of those polled, 23% indicated that they would not vote for those representatives who voted for the sales-tax hike in the future. The legislature's next election was in November 2007, but Corzine did not face re-election until 2009.
294:
of revenue not collected during the shutdown from gambling amounted to just a small fraction of the state's annual budget. Atlantic City's 12 casinos suffered losses estimated at $ 16–20 million per day during the shutdown. Revenue losses to lottery vendors and casino employees have not been calculated. Legislation signed by
Governor Corzine in June 2008 would keep casinos and racetracks open in the event of a future budget showdown, with the Governor noting that the casino industry is vital to the New Jersey economy and that it should not operate under the threat of closure as it did in 2006.
148:, particularly over their refusal to implement his proposed increase of the state's sales tax from 6% to 7% to fill a $ 4.5 billion budget gap. Corzine maintained that the gap could not be filled by any other means due to the state's constitution and a ruling of New Jersey's Supreme Court. Long before the deadline date, Corzine had stated that he would not accept a budget that did not include a sales tax increase. Due to Corzine's insistence, the state's General Assembly, which was dominated by Democrats, refused to pass a budget before the deadline.
22:
225:, respectively, were categorized as non-essential. At the time, New Jersey law precluded gambling establishments from operating absent state oversight. Originally, the race tracks were scheduled to close with the first wave on July 1, but a State Court order allowed them to close later. The casinos attempted a similar case, arguing that the state monitors overseeing the casinos were not paid by the state but by the casinos themselves, but the appeal was rejected at the
82:, claimed he was "not encumbered by an old culture, historical entanglements and the status quo" and had a plan to use his experience to overhaul the budget process and trim spending. When he introduced his first budget as governor, the $ 30.9 billion plan included $ 2 billion in spending cuts as well as increases in taxes on tobacco, alcohol, and luxury cars. The most controversial item in the budget was an increase in the state sales tax.
316:
self-storage; tanning; massages; tattooing; magazines; investigation and security services such as armored cars and alarm systems; limousines, except for those used in funerals; memberships in health, athletic and shopping clubs; and parking, except for employee parking, parking at municipal meters and parking already subject to municipal parking taxes.
267:—highest of all states. The plan also called for the same dedicated purpose for all of the money raised by this sales tax increase in subsequent years. The new budget law included a provision for a constitutional amendment which was required, like all such amendments in the state, to be approved in an
277:
Early in the morning of July 8, 2006, both houses of the legislature passed the proposed budget. At 6:00 am that day, Corzine signed executive order number 19 to restore government services. The casinos in
Atlantic City opened for business at 7:00 am Remaining government services, including
262:
Meeting on the third day of the special session, Democratic factions within the
General Assembly reached a compromise budget. That tentative budget proposed an increase in the state sales tax from 6% to 7%, which was estimated to generate an additional $ 1.1 billion in revenue. The plan also included
315:
The budget also included changes to products and services that are subject to the sales tax, effective
October 1, 2006. The newly taxable items included downloaded music, ringtones, movies and books; shipping and handling; drapery and carpet dry cleaning; floor installation; contracted landscaping;
293:
During the casino shutdown, 36,000 casino workers were given leave. The shutdown of casinos resulted in lost revenue for the state, as an estimated $ 1.3 million per day was collected in gambling taxes plus an additional $ 2 million per day due to the closure of the lottery system. However, the sum
123:
In three of the previous five years, the legislature had failed to meet the June 30 deadline. On each of those occasions an agreement had been reached by the morning of July 2. Aides to
Corzine claimed that the governor felt he had no choice but to order the shutdown under the state's Constitution.
55:
deadline. Furthermore, Corzine and the
Legislature clashed on the issue of raising the state sales tax to help balance budget. Exercising his constitutional powers as governor, Corzine ordered the shutdown as a means of pressuring the Legislature to pass a budget. The shutdown began at midnight on
331:
These additional revenues were expected, when combined with spending cuts including a reduction of $ 200 million in higher education spending, to meet the state's balanced-budget requirement. A clause was also inserted into the budget cutting state aid for schools that hold over $ 1 billion in
312:(UEZs) from 3% to 3.5%. A significant change was made in the payment of sales taxes by businesses operating in the UEZs in that they would be required to pay the entire amount of the full tax rate to the state on all appropriate purchases, and wait for the state to rebate them the difference.
112:) be provided for in a single budget act. If this does not occur before the previous budget lapses, the same section also outlaws any expenditure of money. The constitution also includes a provision in the previous paragraph preventing appropriations from going into
258:
session of the
General Assembly to work on presenting him with a budget. Immediately after listening to the governor's speech, the legislature voted by voice vote to adjourn the session. The General Assembly met again, without proposing a budget, the following day.
246:, developmental centers, veterans' homes, mental hospitals, health and disease-prevention offices, child welfare, work on transportation safety, response to environmental contamination, inspectors of amusement parks" were not affected by the order to shut down.
1582:
1577:
1042:
Closing the lottery cost the state an estimated $ 2 million a day in revenue. Another $ 1.3 million was lost for each day the casinos were closed. The 12 casinos themselves lost an estimated $ 16 million to $ 20 million a day during the
319:
Other immediate tax increases in the budget included an increase in the cigarette tax by $ 0.175 per pack; a 0.4% surcharge on automobile purchases of over $ 45,000.00 and on vehicles with an average combined city highway
101:, strongly rejected the Governor's plan. At the time Roberts said, "Our caucus feels overwhelmingly that there are much more appealing alternatives to balance the budget than a sales tax increase."
1544:
1559:
928:
1554:
278:
race tracks and the state lottery, also reopened on July 8, 2006. State courts and motor vehicle offices resumed normal operations on July 10, 2006, fully ending the shutdown.
1500:
56:
July 1, 2006, when
Corzine called for an orderly shutdown of non-essential government services, which was followed by a second round of shutdowns three days later on July 4.
1708:
1432:
1549:
1539:
1529:
360:
59:
The shutdown officially concluded after the legislature adopted a budget on July 8, 2006. All government services were restored by 8:30 am on July 10, 2006.
352:
Corzine's shutdown of state government had some effect on New Jersey and national politics. According to Clay F. Richards, assistant director of a poll by the
1678:
1572:
108:, under Article VIII, Section II, paragraph 2, requires that the state's expenses for "as far as can be ascertained or reasonably foreseen" (i.e., the
1653:
1534:
1509:
63:
1142:
838:"Today, N.J. shutdown deepens: A Corzine speech and Assembly flyers at a rare session did not defuse the budget fight. Casinos, parks now take a hit"
1688:
1632:
1627:
1493:
1374:
653:
353:
180:
75:
308:
The increase in the rate of the state sales tax from 6% to 7% took effect on July 15, 2006, and also increased the sales tax rate in the state's
1242:
340:, which had an endowment with assets over $ 11 billion in 2006. The university that had the largest endowment next to Princeton at the time was
1143:"Application for Exemption from Sales Tax on Purchases of Goods and Materials for Exclusive Use or Consumption within an Urban Enterprise Zone"
711:
539:
998:
968:
1371:"Corzine Is Early Winner In Battle Of Trenton, Quinnipiac University New Jersey Poll Finds; Voters Blame Legislature 3 – 1 For Budget Crisis"
1314:
749:
394:'s sales- and income-tax increases. By August, Woolley concluded that the tax increase had had no effect on Menendez's re-election chances.
1278:
938:
218:
837:
458:
439:
187:
and parts of the New Jersey
Judiciary. Approximately 45,000 state employees who were listed as "non-essential" were told to stay home.
1693:
1486:
184:
1683:
120:
had interpreted this to exclude loans made to cover shortfalls, and
Corzine claimed that the state had a poor credit rating anyway.
1703:
1020:
255:
161:
1370:
600:
371:
did not oppose Corzine's tax hike because Corzine appointed Menendez to serve out the remainder of his own term in the Senate.
157:
1178:
1089:
906:
93:, had stated his support for Corzine's budget including the tax increase. The stalemate in the negotiations had been with the
1401:
567:
379:
375:
195:
1611:
105:
52:
683:
1436:
1112:
268:
1698:
145:
141:
94:
1339:
815:
411:"Holiday session doesn't end N.J. budget crisis: Lawmakers reject Governor's tax plan, casinos may close Wednesday"
207:
222:
842:
234:
203:
254:
To restore government services, on July 3, 2006, Corzine signed an executive order calling for an unprecedented
156:
After the legislature failed to pass a budget by midnight July 1 when the old budget ended, the governor signed
226:
117:
25:
1029:
773:
477:
243:
211:
160:
number 17 that immediately stopped numerous non-essential government functions, with more to come after the
1419:
And Kean asserted that 'Bob Menendez was afraid to question Jon Corzine because Jon Corzine appointed him.'
1153:
383:
199:
45:
41:
788:
285:
authority to reduce the budget by over $ 51.3 million by eliminating or reducing over 50 spending items.
869:
309:
37:
661:
1471:
And there is no evidence in the survey that the governor has hurt Bob Menendez in his race for Senate.
328:; an increase in the rental-car tax from $ 2 to $ 5 per day; and increases on several business taxes.
1231:
382:
poll, the situation of the election was similar to the 1990 election, when underdog Senate candidate
337:
302:
990:
719:
1310:
1274:
1238:
1210:
1149:
1085:
1059:
1055:
994:
964:
960:
873:
715:
596:
333:
298:
1303:
741:
631:
544:
513:
482:
274:. On November 7, 2006, New Jersey voters approved this measure by a two to one margin statewide.
239:
168:
66:
after failing to pass a budget before the midnight deadline. The shutdown ended on July 3, 2017.
1267:
1206:
98:
86:
961:"Governor Corzine Signs Executive Order to Begin Orderly Resumption of Government Operations"
847:
626:
1478:
1406:
933:
508:
364:
321:
1344:
1183:
341:
688:
282:
712:"Governor Corzine Signs Executive Order for Orderly Shutdown of Government Operations"
1672:
1024:
172:
140:
Corzine, in attempting to pass his conceptual budget, came into conflict with fellow
90:
79:
1378:
592:
459:"It's a done deal: Christie will end state shutdown in time for July 4, sources say"
1081:
898:
387:
368:
325:
264:
191:
132:
109:
48:
391:
271:
176:
1120:
1207:"Information Regarding Sales and Use Tax Changes Effective October 1, 2006"
21:
870:"Governor Signs Executive Order Calling For A Special Legislative Session"
742:"N.J. lawmakers meet amid shutdown: Atlantic City's casinos may be closed"
410:
113:
415:
263:
a requirement to use half of that for direct relief toward New Jersey's
62:
New Jersey would not have another shutdown until July 1, 2017, when the
217:
Casinos and race tracks were closed because official monitors from the
1458:
462:
443:
175:
game continued although players temporarily could not buy tickets in
684:"Corzine: Lack of deal will halt lottery, close Liberty State Park"
1232:"Special Notice to Retail Sellers of Fur Clothing and Accessories"
131:
20:
1179:"Some advice on effects tax hike will have on goods and services"
1082:"New Jersey Motor Vehicle Commission: Frequently Asked Questions"
654:"Amid Bitter Budget Battle, Gov. Corzine Closes State Government"
363:, already seen as tight, would be affected. Republican candidate
336:. The only school in New Jersey that fell into this category was
1304:"New Jersey Corporation Business Surtax and Minimum Tax Changes"
902:
305:
that were to expire at the end of July were extended one month.
1482:
816:"New Jersey Government Shut as Budget Talks Continue (Update4)"
745:
789:"Casinos close, parks and beaches next in N.J. budget battle"
16:
First shutdown in the history of the U.S. state of New Jersey
937:. Packet Publications. November 10, 2006. Archived from
478:"Opening Bid for Governor, Corzine Vows Ethics Reform"
28:, a casino, was closed during the government shutdown.
167:
State functions that ceased immediately included the
1641:
1620:
1604:
1595:
1516:
1268:"Notice to Motor Vehicle Rental Company Businesses"
507:Jones, Richard G.; David W. Chen (March 23, 2006).
386:, a Republican, nearly defeated well-known Senator
1056:"Governor Signs Legislation to Keep Casinos Open"
991:"Governor Corzine Signs FY 07 Appropriations Act"
509:"Corzine Asks New Jersey to Bite a Fiscal Bullet"
1461:. Farleigh Dickinson University. August 31, 2006
1113:"State revises system governing revenue of UEZs"
1583:List of agencies affected by 2018–2019 shutdown
627:"Corzine Orders New Jersey Government Shutdown"
1494:
540:"Support Builds for Corzine's Sales Tax Plan"
8:
929:"State ballot questions gain broad approval"
183:, MVC offices and inspection stations, the
1601:
1578:List of agencies affected by 2013 shutdown
1522:
1501:
1487:
1479:
344:which had a $ 225 million endowment fund.
1709:Government shutdowns in the United States
1510:Government shutdowns in the United States
1365:
1363:
51:failed to agree on a state budget by the
34:2006 New Jersey state government shutdown
1435:. National Review Online. Archived from
1340:"Budget 101: State erases Princeton aid"
374:According to Peter Woolley, director of
1402:"N.J. impasse ends with sales tax hike"
893:
891:
593:"State Government – State Constitution"
568:"N.J. Lawmakers Seek Budget Compromise"
402:
354:Quinnipiac University Polling Institute
229:; therefore they were forced to close.
190:Later (post-July 4) shutdowns included
38:history of the U.S. state of New Jersey
1025:"N.J. budget deal reopens its casinos"
771:"In N.J., state workers back on job".
620:
618:
603:from the original on November 11, 2006
587:
585:
533:
531:
502:
500:
476:Kocieniewski, David (March 31, 2005).
440:"Christie shuts down state government"
1092:from the original on November 7, 2006
7:
359:There was also speculation that the
219:New Jersey Casino Control Commission
438:Matt Arco; Claude Brodesser-Akner.
181:New Jersey Motor Vehicle Commission
1679:State budgets of the United States
1400:Grynbaum, Michael (July 8, 2006).
1320:from the original on July 13, 2006
1284:from the original on July 13, 2006
1248:from the original on July 13, 2006
1001:from the original on July 13, 2006
971:from the original on July 13, 2006
909:from the original on July 19, 2006
185:New Jersey Department of Education
40:. The shutdown occurred after the
14:
1152:. August 10, 2006. Archived from
814:Servetah, Stacie (July 3, 2006).
752:from the original on July 6, 2006
250:Post-shutdown governmental action
1431:Pollowitz, Greg (July 7, 2006).
899:"N.J. Budget Creeping To Finish"
538:Jones, Richard (June 27, 2006).
1689:Tax reform in the United States
1111:Lee, Evelyn (August 21, 2009).
625:Jones, Richard (July 2, 2006).
206:as well as horse racing in the
196:public parks and historic sites
78:Corzine, a former executive at
1459:"Corzine Shakes Off Sales Tax"
846:. July 5, 2006. Archived from
718:. July 1, 2006. Archived from
660:. July 1, 2006. Archived from
376:Fairleigh Dickinson University
36:was the first shutdown in the
1:
793:Philadelphia Business Journal
106:New Jersey State Constitution
1573:List of federal funding gaps
570:. Associated Press/AP Online
566:Hester, Tom (July 2, 2006).
324:19 or less; a new 6% tax on
223:New Jersey Racing Commission
777:. July 8, 2006. p. 20.
390:due to Democratic Governor
146:New Jersey General Assembly
95:New Jersey General Assembly
76:2005 gubernatorial election
1725:
457:Matt Arco (July 3, 2017).
208:Meadowlands Sports Complex
1694:2006 in American politics
1568:
1525:
843:The Philadelphia Inquirer
235:The Philadelphia Inquirer
164:holiday on July 4, 2006.
1684:Government of New Jersey
367:said Democratic Senator
227:New Jersey Supreme Court
118:New Jersey Supreme Court
1704:2006 government budgets
1433:"Corzine the albatross"
1030:Pittsburgh Post-Gazette
774:Philadelphia Daily News
212:Monmouth Park Racetrack
310:Urban Enterprise Zones
200:gambling in New Jersey
137:
42:New Jersey Legislature
29:
1375:Quinnipiac University
1159:on September 22, 2006
941:on September 30, 2007
303:vehicle registrations
136:Governor Jon Corzine
135:
85:The President of the
26:Bally's Atlantic City
24:
348:Political influences
338:Princeton University
64:government shut down
1311:State of New Jersey
1275:State of New Jersey
1239:State of New Jersey
1211:State of New Jersey
1150:State of New Jersey
1086:State of New Jersey
1060:State of New Jersey
995:State of New Jersey
965:State of New Jersey
874:State of New Jersey
716:State of New Jersey
597:State of New Jersey
1699:2006 in New Jersey
1381:on August 17, 2009
1123:on August 29, 2009
632:The New York Times
545:The New York Times
514:The New York Times
483:The New York Times
240:New Jersey Transit
169:New Jersey Lottery
138:
89:, former Governor
30:
1666:
1665:
1662:
1661:
1591:
1590:
1373:(Press release).
1058:(Press release).
993:(Press release).
963:(Press release).
872:(Press release).
714:(Press release).
299:driver's licenses
281:Corzine used his
99:Joseph J. Roberts
97:, whose Speaker,
87:New Jersey Senate
1716:
1602:
1523:
1503:
1496:
1489:
1480:
1474:
1473:
1468:
1466:
1455:
1449:
1448:
1446:
1444:
1439:on July 14, 2011
1428:
1422:
1421:
1416:
1414:
1407:The Boston Globe
1397:
1391:
1390:
1388:
1386:
1377:. Archived from
1367:
1358:
1357:
1355:
1353:
1336:
1330:
1329:
1327:
1325:
1319:
1308:
1300:
1294:
1293:
1291:
1289:
1283:
1272:
1264:
1258:
1257:
1255:
1253:
1247:
1236:
1228:
1222:
1221:
1219:
1217:
1203:
1197:
1196:
1194:
1192:
1175:
1169:
1168:
1166:
1164:
1158:
1147:
1139:
1133:
1132:
1130:
1128:
1119:. Archived from
1108:
1102:
1101:
1099:
1097:
1078:
1072:
1071:
1069:
1067:
1052:
1046:
1045:
1039:
1037:
1023:(July 7, 2006).
1017:
1011:
1010:
1008:
1006:
997:. July 8, 2006.
987:
981:
980:
978:
976:
967:. July 8, 2006.
957:
951:
950:
948:
946:
934:Princeton Packet
925:
919:
918:
916:
914:
905:. July 8, 2006.
895:
886:
885:
883:
881:
866:
860:
859:
857:
855:
834:
828:
827:
825:
823:
811:
805:
804:
802:
800:
785:
779:
778:
768:
762:
761:
759:
757:
748:. July 4, 2006.
738:
732:
731:
729:
727:
708:
702:
701:
699:
697:
680:
674:
673:
671:
669:
650:
644:
643:
641:
639:
622:
613:
612:
610:
608:
589:
580:
579:
577:
575:
563:
557:
556:
554:
552:
535:
526:
525:
523:
521:
504:
495:
494:
492:
490:
473:
467:
466:
454:
448:
447:
435:
429:
428:
426:
424:
407:
384:Christie Whitman
365:Thomas Kean, Jr.
361:U.S. Senate race
322:miles per gallon
256:Independence Day
171:(the interstate
162:Independence Day
1724:
1723:
1719:
1718:
1717:
1715:
1714:
1713:
1669:
1668:
1667:
1658:
1637:
1616:
1597:
1587:
1564:
1518:
1512:
1507:
1477:
1464:
1462:
1457:
1456:
1452:
1442:
1440:
1430:
1429:
1425:
1412:
1410:
1399:
1398:
1394:
1384:
1382:
1369:
1368:
1361:
1351:
1349:
1348:. July 12, 2006
1345:The Star-Ledger
1338:
1337:
1333:
1323:
1321:
1317:
1306:
1302:
1301:
1297:
1287:
1285:
1281:
1270:
1266:
1265:
1261:
1251:
1249:
1245:
1234:
1230:
1229:
1225:
1215:
1213:
1205:
1204:
1200:
1190:
1188:
1187:. July 15, 2006
1184:The Star-Ledger
1177:
1176:
1172:
1162:
1160:
1156:
1145:
1141:
1140:
1136:
1126:
1124:
1110:
1109:
1105:
1095:
1093:
1080:
1079:
1075:
1065:
1063:
1062:. June 27, 2008
1054:
1053:
1049:
1035:
1033:
1019:
1018:
1014:
1004:
1002:
989:
988:
984:
974:
972:
959:
958:
954:
944:
942:
927:
926:
922:
912:
910:
897:
896:
889:
879:
877:
868:
867:
863:
853:
851:
850:on July 7, 2006
836:
835:
831:
821:
819:
818:. Bloomberg L.P
813:
812:
808:
798:
796:
787:
786:
782:
770:
769:
765:
755:
753:
740:
739:
735:
725:
723:
722:on July 6, 2006
710:
709:
705:
695:
693:
692:. June 30, 2006
682:
681:
677:
667:
665:
652:
651:
647:
637:
635:
624:
623:
616:
606:
604:
591:
590:
583:
573:
571:
565:
564:
560:
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548:
537:
536:
529:
519:
517:
506:
505:
498:
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486:
475:
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470:
456:
455:
451:
437:
436:
432:
422:
420:
409:
408:
404:
400:
350:
342:Drew University
291:
252:
158:executive order
154:
142:state Democrats
130:
72:
17:
12:
11:
5:
1722:
1720:
1712:
1711:
1706:
1701:
1696:
1691:
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1615:
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1608:
1606:
1599:
1593:
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1589:
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1585:
1580:
1575:
1569:
1566:
1565:
1563:
1562:
1557:
1552:
1547:
1542:
1537:
1532:
1526:
1520:
1514:
1513:
1508:
1506:
1505:
1498:
1491:
1483:
1476:
1475:
1450:
1423:
1392:
1359:
1331:
1295:
1259:
1223:
1198:
1170:
1134:
1103:
1073:
1047:
1012:
982:
952:
920:
887:
876:. July 3, 2006
861:
829:
806:
795:. July 5, 2006
780:
763:
733:
703:
689:Jersey Journal
675:
664:on May 9, 2008
645:
614:
581:
558:
527:
496:
468:
449:
430:
419:. July 4, 2006
401:
399:
396:
349:
346:
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799:February 1,
242:, prisons,
110:fiscal year
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1673:Categories
1642:New Jersey
1605:California
1519:government
398:References
392:Jim Florio
380:PublicMind
334:endowments
272:referendum
177:New Jersey
70:Background
1621:Minnesota
1560:2018–2019
1545:1995–1996
1535:1981–1986
1043:shutdown.
1517:Federal
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1352:July 12,
1324:July 16,
1315:Archived
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289:Effects
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114:red ink
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128:Causes
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