New Jersey government shutdown: What will close and what will stay open?

TRENTON, New Jersey (WABC) -- New Jersey officials face a Saturday deadline to enact a balanced budget or face a shutdown, as Gov. Phil Murphy and lawmakers continue to dispute tax rates and sales tax percentages.

Murphy sent Democratic legislative leaders a new tax revenue offer aimed at enacting a budget before a looming deadline and avoiding a shutdown.

Murphy said in a letter Saturday that he would take off the table his proposal to hike the sales tax. He says he is also accepting a legislative proposal to hike business taxes, but at different rates.

Another big change is on the income tax on people earning $1 million and above. Instead of a 10.75 percent rate on people earning over $1 million, Murphy is now calling for levying that rate on income of $1.75 million.

If the Democratic governor and lawmakers fail to enact a balanced budget before midnight, state government would close.

Lawmakers didn't immediately respond to requests for reaction.


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.

What will be closed?

It is ultimately up to the governor to decide what "essential and non-essential" services are.

The state announced Friday that the shutdown will not impact 110 of 130 miles of the state's beaches. Municipal pools and parks will also be operating as usual.

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?

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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