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Fight Over Taxes, Spending Could Force Government Shutdown in New Jersey

With a June 30 deadline looming, the points of contention -- Gov. Phil Murphy's proposed tax increases, how to equitably fund schools -- haven't changed much.

It's a game of high-stakes poker, and in the view of Gov. Phil Murphy's administration, the other side won't show its hand.

As the slow-motion showdown over New Jersey's budget heads into its final act, the points of contention -- Murphy's proposed tax increases, how to equitably fund schools -- haven't changed much.

But with three weeks to go before the June 30 deadline for a state budget, neither Murphy nor Senate President Stephen Sweeney, D-Gloucester, appear to be budging. If the impasse isn't resolved, non-essential functions of state government will shut down July 1, as happened last year when then-Gov. Chris Christie and the Legislature clashed over health insurance reform.

This year's dynamics are different: the confrontational Republican Christie has been replaced by the low-key Democrat Murphy, and the disputes center on education funding and taxes. But the threat of a shutdown looms anew, with Sweeney saying he'd rather close state offices and furlough thousands of workers than perpetuate what he calls an unfair school funding system.

Elizabeth Daigneau is GOVERNING's managing editor.
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