Saturday, July 01, 2006

Shut It Down?

New Jersey Gov. Corzine is playing with fire by threatening the shut down of the New Jersey state government except for essential services. Everything, from casinos to the state lottery would be affected (and note that such a shutdown could result in the losses of hundreds of millions for those businesses and the attendant tax revenues from those businesses). Talk about biting the hand that feeds the state government.

Corzine wants to impose an increase in the state sales tax to cover the increases in state spending that he has called for in his budget. Enlighten NJ has more details (including a countdown clock), but suffice to say, Corzine is playing a very dangerous game - hoping that the legislature will bend to his will before elections in November where those who vote for any increase in taxes may face the wrath of voters. And who knows how the voters will respond then. The Legislature knows this and isn't playing along.

UPDATE:
It's official. Corzine has signed an executive order shutting down the state government. First to close: the state lottery and road repair projects. Parks, beaches, historic sites, and the casinos may close in coming days. I'd love to see Corzine try that latter one - there'd be no surer way to political suicide than shutting down the casinos during a holiday weekend than that (so expect him to try and shutter the casinos on July 5 if no agreement is reached).

Good. Let's see what other state government agencies and projects are closed. Those that aren't missed shouldn't be funded going forward.

Of course no one in Trenton will go along with that proposal, so how about one that's slightly more feasible. Simply carry over last year's budget. Enlighten NJ has the details about that one as well.

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