Here's what New Jersey residents need to know:
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What is the deadline?
Murphy has until midnight June 30 to sign a budget.
What are the key sticking points?
Governor Murphy has said he would veto the Democrat-led Legislature's $36.5 billion budget because it does not contain enough tax revenue.
The governor has been pushing for an income tax hike on people who make more than $1 million a year. He also wants to restore the sales tax to 7 percent.
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What will be closed?
It is ultimately up to the governor to decide what "essential and non-essential" services are.
During a state shutdown last year, Governor Chris Christie closed all state-run parks, forests, camping areas, historic sites and beaches.
Motor Vehicle Commission offices are likely to close.
What will remain open?
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Casinos and racetracks will continue to operate for up to seven days in the event of a government shutdown.
Last year, Governor Christie deemed the lottery an "essential" service.
The Associated Press contributed to this story.
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