I don't live in New Jersey but from what I understand Corzine wants to raise the state sales tax to make up for budget shortfalls. The legislature wants to do a combination of cutting the budget (more the Republicans) and use targeted tax increases (more the democrats). Last Saturday was the final day to submit a new budget which included tax increases and cuts but no sales tax increase. Corzine will not sign the budget submitted and the state effectively runs out of money on July 5th. Untill a compromise is reached all state funded operations stop, although essential facilities such as state hopitals and prisons will of course continue to operate with those employees working without a paycheck untill this is resolved.