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New Jersey Budget Deal Reached
By TOM HESTER JR.
The Associated Press
TRENTON, N.J. —
New Jersey's governor and lawmakers reached a deal Thursday on a new state budget, six days into a state government shutdown that shuttered casinos and threw more than 80,000 people out of work, three high-ranking goverrment officials said.
The agreement includes the sales tax increase that Gov. Jon S. Corzine wanted, one of the officials said. All three spoke on condition of anonymity because Corzine would be announcing the deal.
Corzine shut down non-essential government operations on Saturday after the Legislature failed to pass a budget by the July 1 deadline.
More than 45,000 state workers were furloughed, including those who staff state parks and beaches and the gambling inspectors who keep an eye on the casinos. Without the gambling inspectors, Atlantic City's dozen casinos had to shut their doors Wednesday, putting 36,000 casino employees out of work.
Hundreds of angry state workers and casino employees rallied outside the Statehouse on Thursday. Inside, Corzine told state lawmakers that the budget stalemate "deplorable."
"The people of the state of New Jersey have every right to be angry," he told legislators. "Let's put New Jerseyans back to work and let them go on with their everyday lives."
The deal reached Thursday would close a $4.5 billion gap in the state budget by raising the sales tax from 6 percent to 7 percent, which would raise about $1.1 billion a year, the official said. Half of the new money would be used to lower property taxes this year, and all of it would go for that purpose next year.
Democrats who control the state Assembly had opposed the tax increase, which would cost the average New Jersey family an estimated $275 per year.
Senate Majority Leader Bernard F. Kenny said a potential deal started to come together after Assembly Democrats realized there wasn't enough support for an alternative budget plan they had offered Wednesday.
"Hopefully we'll get a budget passed this weekend," said Kenny, who was in meetings with the governor throughout the day.
The governor's staff didn't immediately know Thursday how quickly shuttered activities such as horse racing, casino gambling and the lottery would resume. The casinos stood to lose more than $16 million a day while shut down, and the state would lose an estimated $1.3 million a day in the taxes they normally generate.
Several lawmakers said it was possible that budget committees would meet Thursday night to begin pushing the budget measure forward but said that would most likely happen Friday morning since the bill has to be printed.
Bob Master, a director with a key state workers union, the Communications Workers of America, said their lawyer was meeting with administration officials and hoped to learn when state workers could return to their jobs.
"We're anxious to get back to work," he said.
Casino Control Commission chief Linda Kassekert said Wednesday it would take hours to get the operations running again. Dennis Drazin, who represents the New Jersey Thoroughbred Horsemen's Association, said he anticipated a quick restart at the Meadowlands and Monmouth Park race tracks, possibly even as early as Friday.
Outside the Statehouse, about 350 out-of-work state employees were urging a quick resolution.
"The money is just dwindling down," said Cheryl Fogu, 50, of Brick, who works for the state attorney general's office. "They just don't realize what they're doing to us."
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