New Jersey Budget Dispute Closes State DMV, Halts Road Projects

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dispute between New Jersey Gov. Jon Corzine (D) and state legislators over a proposed sales tax hike has shut down the state’s government, including the state’s Division of Motor Vehicles, news services reported Wednesday.

The shutdown, which began Saturday, centered on a proposed hike in the tax to 7% from 6%, the Associated Press reported. The state’s casinos in Atlantic City began shutting down Wednesday, AP said.

The shutdown began soon after the Democrat-controlled Legislature failed to approve Corzine’s $31 billion budget. Soon afterward, DMV offices closed and road construction was halted, the New York Times reported Wednesday

Corzine on Saturday ordered all state offices shut down, closed all non-essential state government operations and furloughed more than half the state's employees, AP reported.