No NJ Government Shutdown, Gov. Phil Murphy Says

New Jersey Gov. Phil Murphy said there will be no government shutdown when the new fiscal year begins on Monday.

Murphy made the announcement on Thursday that, going into the July 4 holiday, beaches and parks will be open, state employees will be getting a paycheck and "the gates will be open" at state facilities.

"I cannot and will not subject our residents to the inconvenience they would suffer under a government shutdown," Murphy said.

He said closing parks and beaches "only punishes the innocent."

Murphy did, however, hint that he will possibly line-item veto parts of the budget as he continues to push for a millionaire's tax.

"I will meet our constitutional deadline and sign a budget," he said.

Murphy said talks between his administration and the Democratic-controlled legislature have been constructive and "all options are on the table" – except a shutdown.

"I'm taking a government shutdown off the table," he said.

There was little reaction from legislators to Murphy's announcement, although Senate Majority Leader Loretta Weinberg applauded the governor’s declaration that he would keep the state Legislature’s $50 million increase in funding for NJ Transit in the budget bill.

“Senate President Steve Sweeney and I said on the day of the governor’s budget speech that NJ Transit’s operating budget was severely underfunded, and that we would need to add significant funding to meet the needs of over 900,000 daily bus, rail and light riders,” said Weinberg, D-Bergen.

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

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

Murphy could 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 lawmakers could override his vetoes, and there is a lot of acrimony between Murphy and the Democratic legislature that's bigger than any tax, and a number of things could continue to cause problems – even without a shutdown:

• 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 Thursday. Read more: These 190-Plus Districts May Face Tax Hike: NJ School Aid Figures

This is a developing story. Patch will have more information as it comes in.