Casinos, racetracks ordered closed as N.J. budget impasse continues
Governor, lawmakers meet Sunday but fail to reach compromise
Trenton, N.J. ? Atlantic City’s casinos were ordered to close Wednesday, the latest casualty of a state government shutdown that began 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.”

Jockeys and other personnel leave the track at Monmouth Park race track in Oceanport, N.J. Gov. Jon S. Corzine shut down the state government Saturday after a deadline to adopt a new balanced budget expired. He has ordered race tracks to shut down at the end of business Tuesday.
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. The horse racing industry said it would file further appeals to keep harness and thoroughbred tracks open past then if the budget impasse is not resolved.
Corzine met in private with top Assembly and Senate leaders for nearly four hours Sunday but no compromise was reached.
The Senate is scheduled to meet today, and Senate President Richard J. Codey has told senators to be ready to stay in session until a budget is adopted.






