Governor Chris Christie asked his Cabinet on Monday to prepare contingency plans in case stalled budget talks produce a government shutdown. TRENTON — Governor Chris Christie asked his Cabinet on Monday to prepare contingency plans in case stalled budget talks produce a government shutdown.
Written by the governor's Chief Counsel Charles McKenna, the memo says the administration is committed to working with the Legislature to meet the constitutional budget deadline of June 30. But just in case, McKenna asks cabinet members to detail the activities that are "necessary to maintain the health, safety and welfare" of residents "and to prevent the damage, loss or destruction of property, if any."
Christie and lawmakers must agree to a new budget by July 1 or else the state can't pay for non-essential services.
He asked for contingency plans by next Monday at 5 p.m. The governor did not ask cabinet members for similar contingency plans last year.
The memo was first reported by The Record.
Christie spokesman Michael Drewniak said, "It is our hope and intention to reach a budget agreement, even as time is getting short. But we still must be responsible and prepare for any possibility."
The main disagreement between lawmakers and the governor's office is tax cuts and whether the state can afford them.
Christie wants a a 10 percent across-the-board income tax cut, while Assembly and Senate Democrats followed with their own proposals.
Senate President Stephen Sweeney (D-Gloucester) offered a tax credit equal to 10 percent of a resident’s property tax bill, capped at $1,000. The Assembly wants to use a "millionaires tax" to help boost the credit to 20 percent and cap it at $2,000.
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The Republican governor announced last week he was willing to sign onto Sweeney’s plan and urged a crowd of elderly residents — who are not so concerned about income taxes — to pressure the Assembly to come onboard.
Sweeney and Christie had appeared on the verge of a compromise that mirrored the Senate version and would give tax cuts to those making up to $400,000 and step up efforts to increase the Earned Income Tax Credit for working families. But it stalled in part because some Democrats were concerned the state can’t afford it amid slumping tax revenues. Christie and Sweeney insist the money will be there, and the governor is willing to borrow more for transportation to make it happen.
State government was shut down for a week in 2006 when Gov. Jon Corzine was unable to reach a budget deal with his fellow Democrats over plans to raise the sales tax from 6 cents to 7 cents.
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