Atlantic City's casinos were
ordered to close Wednesday, the latest casualty of a state government shutdown
that entered its second day Sunday after the Legislature failed to adopt a
budget by its July 1 deadline.
The head of the Casino Control Commission ordered gaming in Atlantic City to
cease at 8 a.m. Wednesday — the day after the July Fourth holiday — if New
Jersey fails to enact a budget by then.
Atlantic City's 12 casinos, which require state monitoring, have waged a
court battle to remain open, and an appeals court was weighing the matter
Sunday. There was no word on when a ruling would be made, courts spokeswoman
Winnie Comfort said.
Gov. Jon S. Corzine said Sunday there was "no immediate prospect of a
budget." State parks, beaches and historic sites also were expected to shut down
Wednesday.
If the casinos shut down, the state would lose an estimated $2 million in tax
revenue each day they stayed closed. Republican Assemblyman Francis Blee, whose
district includes the casinos, said it was important for them to remain open.
"We will have tens of thousands of individuals, real people, that are going
to be hurt by this," he said. "There will be bread-winners who are not bringing
home a paycheck."
Corzine shut down nonessential government services Saturday after the
Legislature failed to adopt a budget by its July 1 deadline, leaving the state
without the means to spend money. Budget talks became heated this year as
Corzine, a Democrat, proposed increasing 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 sales
tax increase, fearing voter backlash and reserving any tax increase for property
tax reform. Assembly Democrats proposed a series of alternatives, some of which
Corzine accepted, but both sides remained $1 billion apart as the budget
deadline passed.
About 45,000 state employees were furloughed Saturday. Corzine's order allows
him to keep 36,000 state employees working without pay. Services such as state
police, prisons, mental hospitals and child welfare were to keep operating.
The lottery and road construction projects were among the first to close. A
state appellate panel on Sunday ordered horse tracks closed at the end of
business Tuesday. It was not immediately known Sunday whether the horse racing
industry would file further appeals to keep harness and thoroughbred tracks open
past July 4.
Corzine was expected to meet in private Sunday with top Assembly and Senate
leaders. Assembly Budget Committee members were called to the Statehouse and
were discussing alternatives to a sales tax increase, panel chairman Lou
Greenwald said.
The Senate is scheduled to meet on Monday, and Senate President Richard J.
Codey has told senators to be ready to stay in session until a budget is
adopted.
"Let's get on with getting this problem solved," Corzine said while touring a
state police dispatch center in Hamilton on Sunday, emphasizing he couldn't
"sign a bill that doesn't exist."
Republicans, the minority party in both the Assembly and Senate, have
expressed frustration.
"I'm appalled that this reached this stage," said Senate Minority Leader
Leonard Lance, R-Hunterdon. "It is very unfortunate that the Democratic governor
and Democratic majorities in the Legislature could not achieve a budget in place
by June 30, and now all the people of New Jersey suffer as a result."
Some lottery sellers — and many customers — were surprised to learn that the
games were being put on hold until the budget impasse is resolved.
"People will be angry, but we can't do anything about it," said Umesh Patel,
40, owner of Deli Delight in Ewing. "I don't know how long it's going to be, so
let's just see what happens next."
