How will the Looming New Jersey Government Shutdown affect your Business?

In a letter to Cabinet officials yesterday, Governor Christie’s Acting Chief Counsel instructed all State departments to draft contingency plans and prepare for short-term shutdown if the State budget for FY 2018 is not passed by midnight, July 1. In the event of a shutdown, only essential services to protect the health, safety, and property of New Jersey citizens will function. All other State services will cease until the budget is passed.

If the shutdown occurs, anyone who has a matter before a State government body will likely be delayed for a period of undetermined length. State courts will be closed, except in certain emergency cases. The State procurement process will also stall, impacting various entities who are seeking State contracts, and those with State contracts will also likely see a work stoppage, unless they are involved in providing “essential services.” However, some departments and agencies will continue to run because they are considered necessary for the well-being of New Jerseyans, such as the State Police.

As of now, the situation in Trenton is fluid. There is still time for a deal to be made to prevent a shutdown, though the Executive and Legislature remain at loggerheads.

For assistance in determining how the potential government shutdown may affect your business, please contact Rebecca Moll Freed, Esq., Chair of the Corporate Political Activity Law Group, at rfreed@genovaburns.com or 973-230-2075, Avi D. Kelin, Esq. at akelin@genovaburns.com or 973-646-3267, or Paul M. Rozenberg, Esq. at prozenberg@genovaburns.com or 973-646-3283.