Possible NJ Government Shutdown Coming Soon: Here's When, Why

Here we go again.

Gov. Phil Murphy and the Democratic legislature – despite belonging to the same political party – are deadlocked on several issues that could shut down government on Monday morning.

Whether it's money to fight opioid addiction for funding for schools, here's the bottom line: You could lose a lot.

While both sides disagree over taxes, there are a number of issues that could sidetrack state officials and lead to the second New Jersey government shutdown in three years.

A government shutdown would also mean: shutting down Motor Vehicle Commission offices, courts and state parks and leaving thousands of state workers without a paycheck.

Murphy could avoid a shutdown by just agreeing with the budget that lawmakers passed last week. He could also line-item veto what he calls "pork" in the budget if he doesn't get his signature plan – a tax on everyone making $1 million or more. Or he could take no action.

The latter two options could lead to a shutdown, unless the lawmakers override his vetoes. But there is a lot of acrimony between Murphy and the Democratic legislature that's bigger than any tax, and a number of things could drive lawmakers to a stalemate:

• Murphy wants what he calls "a modest fee" on opioid manufacturers and distributors to help offset state costs for programs to fight the opioid epidemic and support recovery. The Legislature’s budget, he said, "failed" to include Murphy’s proposed fee on opioid manufacturers and distributors, along with numerous other revenue raisers, to help offset the costs for additional spending. The assessment on manufacturers and distributors would raise an estimated $21.5 million in new revenue to fight the opioid crisis devastating New Jersey’s families, he said.
• Murphy's war with political boss George Norcross is hitting fever pitch, and the insuance executive has found his stiffest challenge yet in the governor. Senate President Stephen Sweeney's childhood friend has become the subject of various news reports that show his influence may be shrinking, and the things he's done to build up his reputation are now being called into question. Norcross has found himself possibly targeted in a Murphy administration probe into the state's tax incentive programs, and he's even sued the governor for what he considers overreach. As the Norcross-Murphy battle continues, the Murphy-Sweeney relationship appears to continue to deteriorate. Both sides, according to various reports, don't even appear to be talking. Read more: Troubles Surrounding NJ's 'Most Powerful Unelected' Man?
• Sweeney and other legislative leaders are vehemently opposed to the millionaire's tax, despite favoring it when Gov. Chris Christie is in power. Murphy appears to be digging in his heels, running a number of the television ads that insist on the need for it. He's also made a point of signaling out the legislators' potential hypocrisy on the issue, sending out news releases and talking points that seem to cast the lawmakers in a negative light.
• The state Legislature approved a $38 billion budget on Thursday that will only increase taxes paid by HMOs, but will not raise fees on bear hunters, corporations and gun owners – all things Murphy also wants. The Senate voted 31-6, and the Assembly voted 53-24, to approve a spending plan that includes a $1.4 billion surplus.
• The budget also could also include reductions in school aid from what Murphy proposed. Those figures were not completely clear on Wednesday. Read more: These 190-Plus Districts May Face Tax Hike: NJ School Aid Figures
• There are no talks between both sides planned before the shutdown.