New Jersey Budget Battle Heats Up With Four Days Until Deadline
RUTHERFORD, N.J. (CBSNewYork) -- The budget battle is heating up in New Jersey.
As CBS2's Lisa Rozner reports, the governor and legislative leaders have four days to agree on what taxes they'll raise.
Gov. Phil Murphy is trying to hammer into lawmakers that New Jersey Transit's troubles will stay and even worsen under the $36.5 billion budget they've handed him.
"All options are on the table," said Murphy. "Unfortunately that includes a shutdown."
The Democratic governor wants to boost the income tax rate on millionaires to 10.75% and restore the sales tax from 6.62% to 7%.
But Senate President Steve Sweeney, also a Democrat, disagrees and wants to increase corporate taxes in the short term.
In a press conference Tuesday with NJ Transit, Murphy said one part of the budget they can agree on is an investment in NJ Transit, but said not all of the budget is good.
"The budget the legislature sent me is not balanced and it's not sustainable," said Murphy. "I'll have to cut something around $850 million to get where we need to get."
The Legislature's budget is nearly $1 billion short of revenue and only provides temporary relief for @NJTRANSIT.
— Governor Phil Murphy (@GovMurphy) June 26, 2018
We cannot be afraid to put the long-term needs of riders before the short-term wants of Trenton's insider politics.https://t.co/XnUfuQ18dO pic.twitter.com/7bHEdLIk0x
"On this issue we all stand together," said assemblyman Gary Schaer. "And that is for responsible funding for transportation which is going to take us into the next century."
If the two sides can't agree by Saturday, residents will suffer come July 1. The state government will shut down, New Jersey beaches and parks could close and thousands of state workers furloughed.