Bally's Atlantic City, a casino, closed during the government shutdown

The 2006 New Jersey State Government shutdown was the first shutdown in the history of the state of New Jersey.^[1] It occurred after the New Jersey Legislature and Governor Jon Corzine failed to agree on a state budget by the constitutional deadline. It began at midnight on July 1, 2006, when Corzine called for an orderly shutdown of non-essential government services, and officially concluded after the legislature adopted a budget on July 8, 2006. All government services were restored by 8:30 a.m. on July 10, 2006. Image File history File linksMetadata Download high resolution version (1600x1200, 429 KB) Summary I took this photo of Ballys in Atlantic City during the 2006 New Jersey State Government Shutdown showing the notice sign and empty casino. ... Image File history File linksMetadata Download high resolution version (1600x1200, 429 KB) Summary I took this photo of Ballys in Atlantic City during the 2006 New Jersey State Government Shutdown showing the notice sign and empty casino. ... Ballys Atlantic City started life in 1901 first as the Marlborough House owned by Josiah White III and his son John. ... A government shutdown occurs when a legislature (including the legislative power of veto by the executive) cannot agree on financing its government programs for the next fiscal year. ... Official language(s) English de facto Capital Trenton Largest city Newark Area  Ranked 47th  - Total 8,729 sq mi (22,608 km²)  - Width 70 miles (110 km)  - Length 150 miles (240 km)  - % water 14. ... The New Jersey Legislature convene at the State House building in Trenton. ... Jon Corzine 54th Governor of New Jersey; Incumbent Christine Christie Todd Whitman, the first female governor of New Jersey The Governor of New Jersey is the chief executive of the U.S. state of New Jersey. ... Jon Stevens Corzine (born January 1, 1947) is the Governor of New Jersey. ... is the 182nd day of the year (183rd in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 189th day of the year (190th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 191st day of the year (192nd in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ...

Background

The New Jersey State Constitution, 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 fiscal year) 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 contains a provision in the previous paragraph preventing appropriations from going into red ink; the New Jersey Supreme Court has interpreted this to exclude loans made to cover shortfalls, and Corzine has claimed that the state has a poor credit rating anyway. Because the President of the New Jersey Senate, former Governor Richard Codey, has stated his support for Corzine's tax raise most of the negotiations have been with the New Jersey General Assembly, whose Speaker, Joseph J. Roberts, strongly rejected the Governor's plan.^[2] Image File history File links JosephJRoberts. ... Assemblyman Joseph J. Roberts Joseph J. Roberts (born July 14, 1952) serves in the New Jersey General Assembly representing the 5th legislative district. ... The Constitution of the State of New Jersey is the basic governing document of the State of New Jersey. ... The New Jersey Supreme Court is the highest court in the U.S. state of New Jersey. ... A loan is a type of debt. ... The New Jersey Senate is the upper house of the New Jersey Legislature. ... Richard James Dick Codey (born November 27, 1946) is an American Democratic Party politician in the U.S. State of New Jersey. ... The New Jersey General Assembly is the lower house of the New Jersey Legislature. ... It has been suggested that Speakers of the House be merged into this article or section. ... Assemblyman Joseph J. Roberts Joseph J. Roberts (born July 14, 1952) serves in the New Jersey General Assembly representing the 5th legislative district. ...

Causes

Governor Corzine [Picture taken during his term as U.S. Senator].

Corzine, in attempting to pass his conceptual budget, came into conflict with fellow state Democrats in the New Jersey General Assembly, particularly over their refusal to implement his proposed increase of the state's sales tax from 6% to 7%^[3] to fill a budget gap. 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. Picture of U.S. Senator Jon Corzine. ... Picture of U.S. Senator Jon Corzine. ... The New Jersey Democratic State Committee or the NJDSC is the New Jersey state affiliate of the United States Democratic Party. ... The New Jersey General Assembly is the lower house of the New Jersey Legislature. ...

The shutdown

After the legislature failed to pass a budget by midnight July 1 when the old budget ended, the governor signed executive order № 17^[4] that immediately stopped numerous non-essential government functions, with more to come after the Independence Day holiday on July 4, 2006. For other uses, see Midnight (disambiguation) Midnight, literally the middle of the night, is a time arbitrarily designated to determine the end of a day and the beginning of the next in some, mainly Western, cultures. ... is the 182nd day of the year (183rd in leap years) in the Gregorian calendar. ... The presidential seal was used by Rutherford B. Hayes in 1880 and last modified in 1959 by adding the 50th star for Hawaii. ... In the United States, Independence Day (commonly known as the “Fourth of July,” “July Fourth”, the “Glorious Fourth”, or simply the “Fourth”) is a federal holiday commemorating the adoption of the Declaration of Independence on July 4, 1776, declaring independence from the Kingdom of Great Britain. ... For other uses, see Holiday (disambiguation). ... is the 185th day of the year (186th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ...

State functions that ceased immediately included the New Jersey Lottery, the New Jersey Motor Vehicle Commission, MVC offices and inspection stations, the New Jersey Department of Education and parts of the New Jersey Judiciary.^[5] The New Jersey Lottery is run by the state of New Jersey. ... The New Jersey Department of Transportation (NJDOT) maintains the State Highway system in New Jersey. ... The New Jersey Department of Education administers state and federal aid programs affecting more than 1. ...

Approximately 45,000 state employees who were listed as "non-essential" were told to stay home.^[6]

Later (post-July 4th) shutdowns included state beaches, public parks, historic sites, gambling at Atlantic City casinos and horse racing in the Meadowlands Sports Complex. The Jersey Shore is a term used in the mid-Atlantic region of the United States to refer to the Atlantic Ocean-facing coast of New Jersey, together with the adjacent resort and residential communities. ... For the Korean family name Park, see Korean name. ... Map of Atlantic City in Atlantic County Coordinates: , Country United States State New Jersey County Atlantic Incorporated May 1, 1854 Government  - Mayor Bob Levy Area  - City  17. ... This article or section does not adequately cite its references or sources. ... Horse-racing is an equestrian sporting activity which has been practiced over the centuries; the chariot races of Roman times were an early example, as was the contest of the steeds of the god Odin and the giant Hrungnir in Norse mythology. ... The Meadowlands Sports Complex is a sports and entertainment facility located in East Rutherford, New Jersey owned and operated by the New Jersey Sports and Exposition Authority (NJSEA). ...

Both of the latter two were due to the official monitors from the New Jersey Casino Control Commission being listed as non-essential. Since gambling establishments cannot legally operate without state oversight, both were forced to close. The Casino Control Commission is a New Jersey state governmental agency that administers the Casino Control Act and its regulations to assure public trust and confidence in the credibility and integrity of the casino industry and casino operations in Atlantic City. ...

Originally, races were 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 New Jersey Supreme Court; therefore they were forced to close. The New Jersey Supreme Court is the highest court in the U.S. state of New Jersey. ...

According to The Philadelphia Inquirer, "NJ Transit, prisons, state police, developmental centers, veterans' homes, mental hospitals, health and disease-prevention offices, child welfare, work on transportation safety, response to environmental contamination, [and] inspectors of amusement parks" were not affected by the order to shutdown.^[7] The Philadelphia Inquirer is one of a two Knight Ridder newspaper duopoly daily for the Philadelphia area. ... New Jersey Transit Arrow III at West Windsor, NJ Hudson-Bergen Light Rail vehicle at 2nd Street station New Jersey Transit (NJ Transit) is a statewide public transportation system serving the U.S. state of New Jersey. ... The New Jersey State Police is the state police force for the state of New Jersey. ...

Post-shutdown governmental action

On July 4, Corzine called an unprecedented Independence Day session of the General Assembly to work on presenting him with a budget.^[8] 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, on July 5. is the 186th day of the year (187th in leap years) in the Gregorian calendar. ...

On July 6, 2006, 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 is estimated to generate an additional $1.1 billion in revenue. The plan also included a requirement to use half of that for direct relief toward New Jersey's property tax — 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 includes a provision for a constitutional amendment which must, like all such amendments in the state, be approved in an Election Day referendum, to be held on November 7, 2006.^[9] New Jersey voters approved this measure by a 2-1 margin statewide. ^[10] is the 187th day of the year (188th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... Property tax, millage tax is an ad valorem tax that an owner of real estate or other property pays on the value of the property being taxed. ... Election Day in the United States is the day when polls most often open for the election of certain public officials. ... Elections Part of the Politics series Politics Portal This box:      A referendum (plural: referendums or referenda) or plebiscite (from Latin plebiscita, originally a decree of the Concilium Plebis) is a direct vote in which an entire electorate is asked to either accept or reject a particular proposal. ... is the 311th day of the year (312th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ...

On the morning of July 8, 2006, both houses of the legislature passed the proposed budget. At 6 a.m. that day, Corzine signed executive order № 19^[11] to restore government services. The casinos in Atlantic City opened for business at 7 a.m. Remaining government services, including 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. is the 189th day of the year (190th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 189th day of the year (190th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 191st day of the year (192nd in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ...

Corzine utilized his line-item veto authority to reduce the budget by over $51.3 million by eliminating or reducing over 50 spending items.^[12] In government, the line-item veto is the power of an executive to nullify or cancel specific provisions of a bill, usually budget appropriations, without vetoing the entire legislative package. ...

Effects

During the casino shutdown, 36,000 casino workers were given leave. The shutdown of casinos was thought to have hurt the state as an estimated $1.3 million per day is collected in gambling taxes by the state.^[9] However, the sum of revenue not collected during the shutdown from gambling amounts to less than a fraction of one percent of the state's annual budget.

All driver's licenses and vehicle registrations that were to expire at the end of July were extended one month.^[13] Current EU driving licence, German version - front 1. ... The Vehicle register in the United Kingdom is a database of motor vehicles. ...

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 Urban Enterprise Zones (UEZs) from 3% to 3½%. 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.^[14] is the 196th day of the year (197th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... Urban enterprise zones encourage development in blighted neighborhoods by offering entrepreneurs and investors tax and regulatory relief if they start businesses in the area. ...

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; 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.^[15][16] is the 274th day of the year (275th in leap years) in the Gregorian calendar. ...

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 miles per gallon 19 or less; a new 6% tax on fur clothing^[17]; an increase in the rental-car tax from $2 to $5 per day^[18]; and increases on several business taxes.^[19] Miles per gallon (MPG, or mpg) is a measure of fuel efficiency - the number of miles the car can run on one gallon of fuel. ... A fur mozetta, worn by a canon, Flanders Fur clothing is clothing made entirely of, or partially of, the fur of animals. ...

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 endowments. The only school in New Jersey that falls into this category is Princeton University, which has an endowment with assets over $11 billion. The university that has the largest endowment next to Princeton is Drew University with a $225 million endowment fund.^[20] The University of Cambridge is an institute of higher learning. ... Endowment can refer to: Financial endowment Endowment (Mormonism) This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ... Princeton University is a private coeducational research university located in Princeton, New Jersey. ... Drew University is a small, private university located in Madison, New Jersey. ...

Political influences

Corzine's shutdown of state government had some effect on New Jersey's or even national politics. According to Clay F. Richards, assistant director of a poll by Quinnipiac University, Corzine had a 44% approval rating, his highest since January 2006. 71% of respondents to the poll 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 will not vote for those representatives who voted for the sales-tax hike in the future. The state legislature's next election will be in November 2007, but Corzine does not face another election until 2009^[21]. Quinnipiac University is a private four-year university in Hamden, Connecticut, located on about 500 acres (2 km²), just north of New Haven. ...

Besides the influence for politics within New Jersey's borders, speculation was rife that the U.S. Senate race, already seen as tight, would be affected. Republican candidate Tom Kean Jr. said Democratic Senator Bob Menendez did not oppose Corzine's tax hike because Corzine appointed Menendez to serve out the remainder of his own term in the Senate. According to Peter Woolley, director of Fairleigh Dickinson University's PublicMind poll, the situation of the election was similar to the 1990 election, when underdog Senate candidate Christie Whitman, a Republican, nearly defeated well-known Senator Bill Bradley due to Democratic Governor Jim Florio's sales- and income-tax increases.^[22] The New Jersey 2006 U.S. Senate election held November 7, 2006 determined that Democrat Bob Menendez will represent New Jersey in the United States Senate for a six-year term ending January 2013. ... Robert Bob Menendez (born January 1, 1954) is a Democratic Senator from New Jersey. ... Fairleigh Dickinson University is a U.S. private university founded in 1942. ... Christine Todd Christie Whitman (born September 26, 1946) is an American Republican politician and author, who served as the 50th Governor of New Jersey and was the Administrator of the Environmental Protection Agency in the administration of President George W. Bush. ... For other uses, see Bill Bradley (disambiguation) and William Bradley. ... James Joseph Florio (born August 29, 1937), usually known as Jim Florio, was the Democratic Governor of New Jersey from 1990 to 1994, the first Italian-American to hold the position. ...

References