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Budget Stalemate Could Cause NJ Government Shutdown

New Jersey Assembly failed to pass the budget bill.

The prospect of a state government shutdown is looming in New Jersey because of the stalemate on enacting a new budget.

Governor Chris Christie says he's willing to sign a budget that includes additions Democrats want but only if they also send him legislation to limit the surplus Horizon Blue Cross Blue Shield can keep and to transfer the lottery assets to the public employee pension fund.

"So now it's up to Speaker Prieto. If Speaker Prieto wants to close the government, this is going to be his decision."

Assembly Speaker Vinnie Prieto agreed to support the lottery legislation, but he won't budge on the Horizon bill because he’s concerned it could increase policyholder rates.

"I will not entertain it now. There was two asks, that he wanted two bills. I gave one of the two, and that's it."

The Senate passed both bills.

Christie says Prieto's stance on the Horizon legislation could result in a budget deadlock that will shut down government and he's ordering state agencies to prepare.

Prieto says he's disappointed the budget bill failed to pass the Assembly Thursday because fewer than half the majority Democrats voted on it.

"I don't want to shut government. I put the bill up. The people that did not vote for this those are the people that are being the obstructionists."

The Assembly and Senate meet again Friday to try to get a budget passed by the midnight deadline.