The Garden State is continuing to operate without a fully functioning Department of Banking and Insurance.
New Jersey Gov. Jon Corzine and state lawmakers have failed to come up with a regular budget or a temporary budget in time to keep the state operating on a normal basis.
Corzine, the former chairman of Goldman Sachs Group Inc., New York, wants to increase the state sales tax to 7%, from 6%, and use a large share of the proceeds to eliminate a $4.5 billion deficit from the state’s $31 billion budget.
Some lawmakers want to use much of the increased sales tax revenue to reduce property taxes, and other lawmakers want to raise revenue without increasing the sales tax rate.
Because the New Jersey state government now lacks the legal authority to spend money, Corzine has ordered the shutdown of many operations.
“Due to the shutdown of State government ONLY EMPLOYEES WHO HAVE BEEN DESIGNATED AS ESSENTIAL should report to work,” officials have written in a note posted on the New Jersey banking and insurance department’s home page. “ALL NON-ESSENTIAL PERSONNEL (including field personnel) should NOT report to work until further notice.”