06 July 2006

The Price of Deadlock

Colorado has fortunately avoided budget deadlock for quite some time. New Jersey is not so lucky. When politicians fail to agree on budgets, governments cease to function. For example, every casino in Atlantic City is currently closed because government inspectors are out of action. Particularly problematic is the fact that New Jersey has given away so many economic development tax breaks that it no longer has easy sources to turn to for revenue.

1 comment:

Andrew Oh-Willeke said...

Deal reached:

The deal will increase the state sales tax from 6 percent to 7 percent and use half the $1.1 billion that it will raise to help lower property taxes, which are among the highest in the nation. It allows the possibility that, in future years, the entire increase will go to property tax relief. . . . 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.