New Jersey Legislature Ordered to Work on Budget on Holiday

TRENTON, N.J., July 3 -- As a state government shutdown threatened to close Atlantic City's casinos, Gov. Jon S. Corzine (D) said Monday that New Jersey lawmakers must report to the Statehouse on the Fourth of July and stay there until they adopt a budget.

Corzine called a special session of the Legislature for Tuesday after negotiations with Assembly Speaker Joseph J. Roberts Jr. (D), the lawmaker leading opposition to the governor's proposed sales tax increase, failed yet again.

At the casinos, meanwhile, executives and employees were fearing the worst -- the first total shutdown in the 28 years of legalized gambling in New Jersey.

Barring a breakthrough in Trenton, the state planned to force the 12 casinos to stop taking bets as of 8 a.m. Wednesday because they cannot operate without state gambling monitors. Those workers are not deemed "essential" -- such employees keep getting paid during a shutdown.

State parks, historic sites and beaches also could be closed Wednesday unless a budget is adopted before then.

An appeals court panel on Monday denied the casinos' request to stay open while the appeals continue. Casino lawyers planned to appeal that decision to the state Supreme Court, said Daniel Heneghan, a spokesman for the state Casino Control Commission.

The state stands to lose $1.3 million a day in revenue if the casinos close, Heneghan said. Nearby business owners said they also feared a financial hit.

"When they shut down, then there's no tourists, no conventions, no money for the workers. That's not good," said Ann Ji, who runs a beauty-supplies store one block from the casino strip.

Corzine imposed the shutdown after lawmakers missed a July 1 deadline to adopt a new state budget.

He wants to raise the state sales tax from 6 percent to 7 percent to help overcome a $4.5 billion budget deficit.

Most Democrats in the Assembly and several Senate Democrats oppose the tax increase. Assembly Democrats proposed a series of alternatives, some of which Corzine accepted, but the two sides remained $1 billion apart.