2006 New Jersey state government shutdown: Difference between revisions

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{{Short description|First shutdown in the history of the U.S. state of New Jersey}}
{{Use mdy dates|date=March 2012}}
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[[Image:Ballys closed.jpg|thumb|right|300px|[[Bally's Atlantic City]], a casino, was closed during the government shutdown.|alt=A roped off entrance to room with a neon sign "CASINO", over a sign saying "CASINO A... CLOSED". The room contains many slot machines. Nobody is in the room.]]
The '''2006 New Jersey Statestate Governmentgovernment shutdown''' was the first [[Government shutdown|shutdown]] in the [[History of New Jersey|history of the U.S. state of New Jersey]].<ref>{{cite webnews |url= http://www.msnbc.msnnbcnews.com/id/13661651/ |title= Holiday session doesn’tdoesn't end N.J. budget crisis: Lawmakers reject Governor’sGovernor's tax plan, casinos may close Wednesday |accessdatework=[[NBC News]] |date=July 4, 2006 |publisher=[[MSNBC]] |access-date=July 4, 2006 |df=mdy }}</ref> The shutdown occurred after the [[New Jersey Legislature]] and [[Governor of New Jersey|Governor]] [[Jon Corzine]] failed to agree on a state budget by the [[New Jersey State Constitution|constitutional]] deadline. Furthermore, Corzine and the Legislature clashed on the issue of raising the state sales tax to help balance budget. Exercising his constitutional powers as governor, Corzine ordered the shutdown as a means of pressuring the Legislature to pass a budget. The shutdown began at midnight on July 1, 2006, when Corzine called for an orderly shutdown of non-essential government services, which was followed by a second round of shutdowns three days later on July 4.
 
The shutdown officially concluded after the legislature adopted a budget on July 8, 2006. All government services were restored by 8:30 a.m. am on July 10, 2006.
 
New Jersey would not have another shutdown until July 1, 2017, when the [[2017 New Jersey state government shutdown|government shut down]] after failing to pass a budget before the midnight deadline.<ref>{{cite news |author1=Matt Arco |author2=Claude Brodesser-Akner |publisher=[[NJ.com]] |title=Christie shuts down state government |url=http://www.nj.com/politics/index.ssf/2017/07/christie_orders_shutdown_of_non-essetial_nj_govern.html}}</ref> The shutdown ended on July 3, 2017.<ref>{{cite news |author=Matt Arco |date=July 3, 2017 |title=It's a done deal: Christie will end state shutdown in time for July 4, sources say |publisher=[[NJ.com]] |url=http://www.nj.com/politics/index.ssf/2017/07/christie_likely_to_approve_deal_to_end_shutdown_so.html}}</ref>
 
== Background ==
During the [[New Jersey gubernatorial election, 2005|2005 gubernatorial election]] Corzine, a former executive at [[Goldman Sachs]], claimed he was "not encumbered by an old culture, historical entanglements and the status quo" and had a plan to use his experience to overhaul the budget process and trim spending.<ref>{{cite news|url=httphttps://www.nytimes.com/2005/03/31/nyregion/metrocampaigns/31corzine.html|title=Opening Bid for Governor, Corzine Vows Ethics Reform|last=Kocieniewski|first=David|date=March 31, 2005|newspaper=[[The New York Times]]|accessdateaccess-date=June 3, 2008}}</ref> When he introduced his first budget as governor, the $30.9 billion plan included $2 billion in spending cuts as well as increases in taxes on tobacco, alcohol, and luxury cars.<ref name="nyt3">{{cite news|url=httphttps://www.nytimes.com/2006/03/23/nyregion/23jersey.html|title=Corzine Asks New Jersey to Bite a Fiscal Bullet |last=Jones|first=Richard G.|coauthorsauthor2=David W. Chen|date=March 23, 2006|newspaper=[[The New York Times]]|accessdateaccess-date=June 3, 2008}}</ref> The most controversial item in the budget was an increase in the state sales tax.<ref name="nyt3"/>
 
The President of the [[New Jersey Senate]], former Governor [[Richard Codey]], had stated his support for Corzine's budget including the tax increase. The stalemate in the negotiations had been with the [[New Jersey General Assembly]], whose [[Speaker (politics)|Speaker]], [[Joseph J. Roberts]], strongly rejected the Governor's plan.<ref name="nyt4"> {{cite news | last=Jones | first=Richard | url=httphttps://www.nytimes.com/2006/06/27/nyregion/27trenton.html?ex=1154491200&en=4bed09362c2f9b10&ei=5070 | title= Support Builds for Corzine's Sales Tax Plan | newspaper=[[The New York Times]] | date=June 27, 2006 | accessdateaccess-date=July 5, 2008}}</ref> At the time Roberts said, "Our caucus feels overwhelmingly that there are much more appealing alternatives to balance the budget than a sales tax increase."<ref>{{cite webnews |url=http://www.redorbit.com/news/general/557082/nj_lawmakers_seek_budget_compromise/index.html|title=N.J. Lawmakers Seek Budget Compromise|last=Hester|first=Tom|date=July 2, 2006|publisher=Associated Press/AP Online|accessdateaccess-date=September 23, 2009}}</ref>
 
The [[New Jersey State Constitution]], under Article VIII, Section II, paragraph 2, requires that the state's expenses for "as far as can be ascertained or reasonably foreseen" (i.e., the [[fiscal year]]) be provided for in a single budget act.<ref name="njsc">{{cite web|url= http://www.state.nj.us/hangout_nj/government.html|accessdate=November 14, 2006|title= State Government - State Constitution |publisher=[[State of New Jersey]] |access-date=November 14, 2006 |archive-url=https://web.archive.org/web/20061111064217/http://www.state.nj.us/hangout_nj/government.html |archive-date=November 11, 2006 |url-status=live |df=mdy }}</ref> If this does not occur before the previous budget lapses, the same section also outlaws any expenditure of money. The constitution also includes a provision in the previous paragraph preventing appropriations from going into [[wikt:red ink|red ink]];<ref name="njsc"/> the [[New Jersey Supreme Court]] had interpreted this to exclude [[loan]]sloans made to cover shortfalls, and Corzine claimed that the state had a poor credit rating anyway.
 
In three of the previous five years, the legislature had failed to meet the June 30 deadline.<ref name="nyt2">{{cite news|url=httphttps://www.nytimes.com/2006/07/02/nyregion/02corzine.html|title=Corzine Orders New Jersey Government Shutdown|last=Jones|first=Richard|date=July 2, 2006|newspaper=[[The New York Times]]|accessdateaccess-date=June 3, 2008}}</ref> On each of those occasions an agreement had been reached by the morning of July 2.<ref name="CBS1">{{cite webnews |url=http://www.cbsnews.com/stories/2006/07/01/politics/main1773801.shtml |title=Amid Bitter Budget Battle, Gov. Corzine Closes State Government |date=July 1, 2006 |publisherwork=CBSNews.comCBS News |accessdateaccess-date=June 3, 2008 |archive-url=https://web.archive.org/web/20080509151859/http://www.cbsnews.com/stories/2006/07/01/politics/main1773801.shtml |archive-date=May 9, 2008 |url-status=live |df=mdy }}</ref> Aides to Corzine claimed that the governor felt he had no choice but to order the shutdown under the state's Constitution.<ref name="nyt2"/>
 
== Causes ==
[[Image:SenatorJonCorzine.jpg|right|thumb|Governor Jon Corzine [Picture taken during his term as U.S. Senator]|alt=Head and shoulders of a man in his mid-fifties, seated with hands clasped. He is Caucasian and wears glasses and a black suit with a white dress shirt and a red tie. His head is balding and he has a gray beard with traces of brown hair. A U.S. flag is in the background.]]
Corzine, in attempting to pass his conceptual budget, came into conflict with fellow [[New Jersey Democratic Party|state Democrats]] in the [[New Jersey General Assembly]], particularly over their refusal to implement his proposed increase of the state's sales tax from 6% to 7%<ref>{{cite news | url=http://www.nj.com/news/jjournal/index.ssf?/base/news-1/1151649105285280.xml&coll=3 | title=Corzine: Lack of deal will halt lottery, close Liberty State Park| newspaper=[[Jersey Journal]] | date=June 30, 2006|accessdateaccess-date=July 1, 2006}}</ref> to fill a $4.5 billion budget gap. Corzine maintained that the gap could not be filled by any other means due to the state's constitution and a ruling of New Jersey's Supreme Court. Long before the deadline date, Corzine had stated that he would not accept a budget that did not include a sales tax increase.<ref name="nyt4"/> Due to Corzine's insistence, the state's General Assembly, which was dominated by Democrats, refused to pass a budget before the deadline.hi
 
== The shutdown ==
After the legislature failed to pass a budget by midnight July 1 when the old budget ended, the governor signed [[Executive order (United States)|executive order]] number 17<ref>{{cite press release | url=http://www.state.nj.us/governor/news/news/approved/20060701a.html | archiveurlarchive-url=httphttps://web.archive.org/web/2007093019085420060706001101/http://www.state.nj.us/governor/news/news/approved/20060701a.html |url-status=dead archivedate|archive-date=SeptemberJuly 306, 20072006 | title=Governor Corzine Signs Executive Order for Orderly Shutdown of Government Operations | publisher=[[State of New Jersey]] | date=July 1, 2006 |accessdateaccess-date=June 30, 2008 |df=mdy }}</ref> that immediately stopped numerous non-essential government functions, with more to come after the [[Independence Day (United States)|Independence Day]] holiday on July 4, 2006.
 
State functions that ceased immediately included the [[New Jersey Lottery]] (the interstate [[Mega Millions]] game continued although players temporarily could not buy tickets in [[New Jersey]]), the [[New Jersey Department of Transportation|New Jersey Motor Vehicle Commission]], MVC offices and inspection stations, the [[New Jersey Department of Education]] and parts of the New Jersey Judiciary.<ref>{{cite web news| url=http://www.cnn.com/2006/POLITICS/07/04/nj.budget.ap/index.html | title=N.J. lawmakers meet amid shutdown: Atlantic City's casinos may be closed | publisher=[[CNN.com]] | date=July 4, 2006 |accessdateaccess-date=July 4, 2006 |archive-url=https://web.archive.org/web/20060706044452/http://www.cnn.com/2006/POLITICS/07/04/nj.budget.ap/index.html |archive-date=July 6, 2006 |url-status=live |df=mdy }}</ref> Approximately 45,000 state employees who were listed as "non-essential" were told to stay home.<ref>{{cite news | title=In N.J., state workers back on job | newspaper=[[Philadelphia Daily News]] | date=July 8, 2006 | page=20}}</ref>
 
Later (post-July 4) shutdowns included [[Jersey shore|state beaches]], [[List of New Jersey state parks|public parks, and historic sites]], [[gambling atin New Jersey]]'s casinos in [[Atlantic City, New Jersey|Atlantic City]] casinos as well as horse racing in the [[Meadowlands Sports Complex]] and [[Monmouth Park Racetrack]].
 
BothCasinos ofand therace latter twotracks were dueclosed to thebecause official monitors from the [[New Jersey Casino Control Commission]] beingand the [[New Jersey Racing Commission]], respectively, were listedcategorized as non-essential. At the time, New Jersey law stated thatprecluded gambling establishments couldfrom notoperating legally operate withoutabsent state oversight.<ref>{{cite news|url=http://milwaukeewww.bizjournals.com/philadelphia/stories/2006/07/03/daily9.html?jst=s_cn_hl|title=Casinos close, parks and beaches next in N.J. budget battle|date=July 5, 2006|work=Philadelphia Business Journal|publisher=American City Business Journals|accessdateaccess-date=JuneFebruary 281, 20082011}}</ref> Originally, the race tracks were scheduled to close with the first wave on July 1, but a State Court order allowed them to close later. The casinos attempted a similar case, arguing that the state monitors overseeing the casinos were not paid by the state but by the casinos themselves, but the appeal was rejected at the [[New Jersey Supreme Court]]; therefore they were forced to close.<ref>{{cite webnews |url=httphttps://www.bloomberg.com/apps/news?pid=20601103&sid=a.Yx6zBwqcs0&refer=us|title=New Jersey Government Shut as Budget Talks Continue (Update4)|last=Servetah|first=Stacie|date=July 3, 2006|publisher=Bloomberg L.P|accessdateaccess-date=June 28, 2008}}</ref>
 
According to ''[[The Philadelphia Inquirer]]'', "[[New Jersey Transit]], prisons, [[New Jersey State Police|state police]], developmental centers, veterans' homes, mental hospitals, health and disease-prevention offices, child welfare, work on transportation safety, response to environmental contamination, [and] inspectors of amusement parks" were not affected by the order to shut down.<ref>{{cite news |url=http://www.philly.com/mld/inquirer/news/local/14966569.htm |archive-url=https://web.archive.org/web/20060707064213/http://www.philly.com/mld/inquirer/news/local/14966569.htm |url-status=dead |archive-date=July 7, 2006 |title=Today, N.J. shutdown deepens: A Corzine speech and Assembly flyers at a rare session did not defuse the budget fight. Casinos, parks now take a hit. | newspaper=[[The Philadelphia Inquirer]] | date=July 5, 2006 | accessdateaccess-date=July 5, 2006 | archiveurldf=http://web.archive.org/web/20060708055215/http://www.philly.com/mld/inquirer/news/local/14966569|archivedate=Julymdy 8, 2006}}</ref>
 
== Post-shutdown governmental action ==
To restore government services, on July 3, 2006, Corzine signed an executive order calling for an unprecedented [[Independence Day (United States)|Independence Day]] session of the General Assembly to work on presenting him with a budget.<ref>{{cite press release | url=http://www.state.nj.us/governor/news/news/2006/approved/20060703.html | title=Governor Signs Executive Order Calling For A Special Legislative Session | date=July 3, 2006 | publisher=[[State of New Jersey]]|accessdateaccess-date=September 19, 2009}}</ref> Immediately after listening to the governor's speech, the legislature voted by voice vote to adjourn the session. The General Assembly met again, without proposing a budget, the following day.
 
Meeting on the third day of the special session, Democratic factions within the General Assembly reached a compromise budget. That tentative budget proposed an increase in the state sales tax from 6% to 7%, which was estimated to generate an additional $1.1 billion in revenue. The plan also included a requirement to use half of that for direct relief toward New Jersey's [[property tax]]—highest of all states. The plan also called for the same dedicated purpose for all of the money raised by this sales tax increase in subsequent years. The new budget law included a provision for a constitutional amendment which was required, like all such amendments in the state, to be approved in an [[Election Day (United States)|Election Day]] [[referendum]].<ref name=WNBC>{{cite webnews | url=http://www.wnbc.com/politics/9452231/detail.html | title=N.J. Budget Creeping To Finish | workpublisher=[[WNBC]] | date=July 8, 2006 |archiveurlarchive-url=httphttps://web.archive.org/web/20060719083351/http://www.wnbc.com/politics/9452231/detail.html | archivedatearchive-date=July 19, 2006 | accessdateaccess-date=October 11, 2009 |url-status=live |df=mdy }}</ref> On November 7, 2006, New Jersey voters approved this measure by a two to one margin statewide.<ref>{{cite news | url=http://www.zwire.com/site/news.cfm?newsid=17447841&BRD=1091&PAG=461&dept_id=425695&rfi=6 | title=State ballot questions gain broad approval | newspaper=[[Princeton Packet]] | publisher=Packet Publications | date=November 10, 2006 |accessdate access-date=November 10, 2006 | archive-url=https://web.archive.org/web/20070930035129/http://www.zwire.com/site/news.cfm?newsid=17447841&BRD=1091&PAG=461&dept_id=425695&rfi=6 | archive-date=September 30, 2007 | url-status=dead | df=mdy-all }}</ref>
 
Early in the morning of July 8, 2006, both houses of the legislature passed the proposed budget. At 6:00 a.m.&nbsp;am that day, Corzine signed executive order number 19<ref>{{cite press release | url= http://www.state.nj.us/governor/news/news/approved/20060708.html | title=Governor Corzine Signs Executive Order to Begin Orderly Resumption of Government Operations | date=July 8, 2006 | publisher=[[State of New Jersey]] |accessdateaccess-date=June 30, 2008 | archiveurlarchive-url=httphttps://web.archive.org/web/20060713010419/http://www.state.nj.us/governor/news/news/approved/20060708.html | archivedatearchive-date=July 13, 2006 |url-status=live |df=mdy }}</ref> to restore government services. The casinos in Atlantic City opened for business at 7:00 a.m.&nbsp;am Remaining government services, including race tracks and the state lottery, also reopened on July 8, 2006. State courts and motor vehicle offices resumed normal operations on July 10, 2006, fully ending the shutdown.
 
Corzine used his [[line-item veto]] authority to reduce the budget by over $51.3 million by eliminating or reducing over 50 spending items.<ref>{{cite press release | url=http://www.state.nj.us/governor/news/news/approved/20060708a.html | title=Governor Corzine Signs FY 07 Appropriations Act | date=July 8, 2006 | publisher=[[State of New Jersey]] |archiveurlarchive-url=httphttps://web.archive.org/web/20060713010419/http://www.state.nj.us/governor/news/news/approved/20060708.html |archivedatearchive-date=July 1413, 2006 |accessdateaccess-date=September 19, 2009 |url-status=live |df=mdy }}</ref>
 
== Effects ==
During the casino shutdown, 36,000 casino workers were given leave. The shutdown of casinos resulted in lost revenue for the state, as an estimated $1.3 million per day was collected in gambling taxes plus an additional $2 million per day due to the closure of the lottery system.<ref name=WNBC/> However, the sum of revenue not collected during the shutdown from gambling amounted to just a small fraction of the state's annual budget. Atlantic City's 12 casinos suffered losses estimated at $16–20 million per day during the shutdown.<ref name=PittPost>{{cite news | last=Barnes | first=Tom | authorlink=Tom Barnes (American journalist)|date=July 7, 2006 | url=http://www.post-gazette.com/pg/06188/704034-84.stm | title=N.J. budget deal reopens its casinos | newspaper=[[Pittsburgh Post-Gazette]] | accessdateaccess-date=July 24, 2008 | quote=Closing the lottery cost the state an estimated $2 million a day in revenue. Another $1.3 million was lost for each day the casinos were closed. The 12 casinos themselves lost an estimated $16 million to $20 million a day during the shutdown.}}</ref> Revenue losses to lottery vendors and casino employees have not been calculated. Legislation signed by Governor Corzine in June 2008 would keep casinos and racetracks open in the event of a future budget showdown, with the Governor noting that the casino industry is vital to the New Jersey economy and that it should not operate under the threat of closure as it did in 2006.<ref>{{cite press release | url=http://www.nj.gov/governor/news/news/2008/approved/20080627.html | title= Governor Signs Legislation to Keep Casinos Open | publisher=[[State of New Jersey]] | date=June 27, 2008|accessdateaccess-date=June 30, 2008}}</ref>
 
All [[driver's license]]s and [[vehicle registration]]s that were to expire at the end of July were extended one month.<ref>{{cite web | url=http://www.state.nj.us/mvc/About/Faq_Closing.htm | title=New Jersey Motor Vehicle Commission: Frequently Asked Questions | publisher=[[State of New Jersey]] |archiveurlarchive-url=httphttps://web.archive.org/web/20061107164421/http://www.state.nj.us/mvc/About/Faq_Closing.htm | archivedatearchive-date=November 7, 2006 | accessdateaccess-date=September 19, 2009 |url-status=live |df=mdy }}</ref>
 
The increase in the rate of the state sales tax from 6% to 7% took effect on July 15, 2006, and also increased the sales tax rate in the state's [[Urban Enterprise Zone]]s (UEZs) from 3% to 3.5%.<ref>{{cite news |first=Evelyn |last=Lee |title=State revises system governing revenue of UEZs |url=http://www.njbiz.com/article.asp?aID=79000 |newspaper=NJBiz |publisher=Journal Publications |date=August 21, 2009 |accessdateaccess-date=September 23, 2009 |archiveurlarchive-url=https://web.archive.org/web/20090829101443/http://www.webcitationnjbiz.orgcom/5k4HCb5nrarticle.asp?aID=79000 |archivedatearchive-date=August 29, 2009 |url-09-26status=dead |deadurldf=nomdy }}</ref> A significant change was made in the payment of sales taxes by businesses operating in the UEZs in that they would be required to pay the entire amount of the full tax rate to the state on all appropriate purchases, and wait for the state to rebate them the difference.<ref>{{cite web | url=http://www.state.nj.us/treasury/taxation/pdf/other_forms/uez/uz5sba.pdf | title=Application for Exemption from Sales Tax on Purchases of Goods and Materials for Exclusive Use or Consumption within an Urban Enterprise Zone | publisher=[[State of New Jersey]] |date=August 10, 2006 |accessdateaccess-date=September 23, 2006 |formatarchive-url=PDFhttps://web.archive.org/web/20060922082249/http://www.state.nj.us/treasury/taxation/pdf/other_forms/uez/uz5sba.pdf |archive-date=September 22, 2006 |url-status=dead |df=mdy }}</ref>
 
The budget also included changes to products and services that are subject to the sales tax, effective October 1, 2006. The newly taxable items included downloaded music, ringtones, movies and books; shipping and handling; drapery and carpet dry cleaning; floor installation; contracted landscaping; self-storage; tanning; massages; tattooing; magazines; investigation and security services such as armored cars and alarm systems; limousines, except for those used in funerals; memberships in health, athletic and shopping clubs; and parking, except for employee parking, parking at municipal meters and parking already subject to municipal parking taxes.<ref>{{cite news | url=http://www.nj.com/news/ledger/jersey/index.ssf?/base/news-3/1152939100301940.xml&coll=1 | title=Some advice on effects tax hike will have on goods and services | newspaper=[[The Star-Ledger]] | date=July 15, 2006|accessdateaccess-date=July 15, 2006}}</ref><ref>{{cite web | url=http://www.state.nj.us/treasury/taxation/salestaxbase.shtml | title=Information Regarding Sales and Use Tax Changes Effective October 1, 2006 | publisher=[[State of New Jersey]] |accessdateaccess-date=October 15, 2006}}</ref>
 
Other immediate tax increases in the budget included an increase in the cigarette tax by $0.175 per pack; a 0.4% surcharge on automobile purchases of over $45,000.00 and on vehicles with an average combined city highway [[miles per gallon]] 19 or less; a new 6% tax on [[fur clothing]];<ref>{{cite web | url=http://www.state.nj.us/treasury/taxation/pdf/furclothingnotice.pdf | title=Special Notice to Retail Sellers of Fur Clothing and Accessories | publisher=[[State of New Jersey]] | accessdateaccess-date=July 16, 2006 |formatarchive-url=PDFhttps://web.archive.org/web/20060713082421/http://www.state.nj.us/treasury/taxation/pdf/furclothingnotice.pdf |archive-date=July 13, 2006 |url-status=live |df=mdy }}</ref> an increase in the rental-car tax from $2 to $5 per day;<ref>{{cite web | url=http://www.state.nj.us/treasury/taxation/pdf/rentalnotice.pdf | title=Notice to Motor Vehicle Rental Company Businesses | publisher=[[State of New Jersey]] |accessdateaccess-date=July 16, 2006 |formatarchive-url=PDFhttps://web.archive.org/web/20060713082430/http://www.state.nj.us/treasury/taxation/pdf/rentalnotice.pdf |archive-date=July 13, 2006 |url-status=live |df=mdy }}</ref> and increases on several business taxes.<ref>{{cite web | url=http://www.state.nj.us/treasury/taxation/pdf/surtaxchanges.pdf | title=New Jersey Corporation Business Surtax and Minimum Tax Changes | publisher=[[State of New Jersey]] |accessdateaccess-date=July 16, 2006 |formatarchive-url=PDFhttps://web.archive.org/web/20060713082417/http://www.state.nj.us/treasury/taxation/pdf/surtaxchanges.pdf |archive-date=July 13, 2006 |url-status=live |df=mdy }}</ref>
 
These additional revenues were expected, when combined with spending cuts including a reduction of $200 million in [[higher education]] spending, to meet the state's balanced-budget requirement. A clause was also inserted into the budget cutting state aid for schools that hold over $1 billion in [[Financial endowment|endowments]]. The only school in New Jersey that fell into this category was [[Princeton University]], which had an endowment with assets over $11 billion in 2006. The university that had the largest endowment next to Princeton at the time was [[Drew University]] which had a $225 million endowment fund.<ref>{{cite news | url=http://www.nj.com/news/ledger/index.ssf?/base/news-7/11526859954680.xml&coll=1 | title=Budget 101: State erases Princeton aid | newspaper=[[The Star-Ledger]]| date=July 12, 2006|accessdateaccess-date=July 12, 2006}}</ref>
 
==Political influences==
Corzine's shutdown of state government had some effect on New Jersey and national politics. According to Clay F. Richards, assistant director of a poll by the [[Quinnipiac University Polling Institute]], Corzine had a 44% approval rating, his highest since January 2006. The poll also indicated that 71% of respondents disapproved of the legislature's handling of its job. According to Richards, "New Jersey voters clearly blame the state legislature for the budget crisis, and say the property-tax relief that the legislature insisted on in the compromise is more politics than real reform."<ref name="QUPoll"> {{cite press release | title=Corzine Is Early Winner In Battle Of Trenton, Quinnipiac University New Jersey Poll Finds; Voters Blame Legislature 3 – 1 For Budget Crisis | publisher = [[Quinnipiac University]] | url=http://www.quinnipiac.edu/x1299.xml?ReleaseID=937 |accessdate access-date=June 28, 2008 | archive-url=https://web.archive.org/web/20090817204235/http://www.quinnipiac.edu/x1299.xml?ReleaseID=937 | archive-date=August 17, 2009 | url-status=dead | df=mdy-all }}</ref> Of those polled, 23% indicated that they would not vote for those representatives who voted for the sales-tax hike in the future.<ref name="QUPoll"/> The legislature's next election was in November 2007, but Corzine did not face re-election until 2009.
 
There was also speculation that the [[New Jersey United States Senate election, 2006|U.S. Senate race]], already seen as tight, would be affected. Republican candidate [[Thomas Kean, Jr.]] said Democratic Senator [[Bob Menendez]] did not oppose Corzine's tax hike because Corzine appointed Menendez to serve out the remainder of his own term in the Senate.<ref>{{cite webnews | last=Grynbaum | first=Michael | work=[[The Boston Globe]] | url=http://www.boston.com/news/nation/articles/2006/07/08/nj_impasse_ends_with_sales_tax_hike/ | title=N.J. impasse ends with sales tax hike | quote=And Kean asserted that ``'Bob Menendez was afraid to question Jon Corzine because Jon Corzine appointed him."' | date=July 8, 2006 | accessdateaccess-date=October 11, 2009}}</ref>
 
According to Peter Woolley, director of [[Fairleigh Dickinson University]]'s [[Fairleigh Dickinson University#PublicMind|PublicMind]] poll, the situation of the election was similar to the 1990 election, when underdog Senate candidate [[Christine Todd Whitman|Christie Whitman]], a Republican, nearly defeated well-known Senator [[Bill Bradley]] due to Democratic Governor [[Jim Florio]]'s sales- and income-tax increases.<ref name="race">{{cite web | last=Pollowitz | first=Greg | url=http://sixers.nationalreview.com/post/?q=YzAyZGRjYWVmNDg0NWVjNWJiZGU4ZGE0YjI3ZDM1M2I= | title=Corzine the albatross | workpublisher=National Review Online | date=July 7, 2006 | accessdateaccess-date=October 11, 2009 | archive-url=https://web.archive.org/web/20110714155452/http://sixers.nationalreview.com/post/?q=YzAyZGRjYWVmNDg0NWVjNWJiZGU4ZGE0YjI3ZDM1M2I= | archive-date=July 14, 2011 | url-status=dead | df=mdy-all }}</ref> By August, Woolley concluded that the tax increase had had no effect on Menendez's re-election chances.<ref>{{cite web | url=http://publicmind.fdu.edu/shakeoff/ | Publisherpublisher=Farleigh Dickinson University | title=Corzine Shakes Off Sales Tax | date=August 31, 2006 | quote=And there is no evidence in the survey that the governor has hurt Bob Menendez in his race for Senate. | accessdateaccess-date=October 11, 2009}}</ref>
It affected Corzine and his running mate , Loretta Weinberg as they lost to Chris Christie in November of 2009.
 
==References==
{{reflist|230em}}
{{wikinews|Parts of New Jersey government stopped as budget fails to clear Legislature in time}}
{{U.S. government shutdowns}}
{{wikinews|Belated New Jersey budget passes, ending most of the shutdown}}
[[Category:GovernmentState financesbudgets inof the United States]]
{{reflist|2}}
 
[[Category:Government finances in the United States]]
[[Category:Government of New Jersey]]
[[Category:Tax reform in the United States]]
[[Category:2006 in American politics]]
[[Category:2006 in New Jersey]]
[[Category:2006 government budgets|New Jersey state government shutdown]]
[[Category:Government shutdowns in the United States]]