Trenton, N.J. ? As the state government shutdown threatened to close Atlantic City’s casinos, Gov. Jon S. Corzine on Monday said New Jersey lawmakers must report to the Statehouse on July 4 and stay there until they adopt a budget.

Corzine called for a special session of the Legislature after Monday afternoon negotiations with 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 – a total shutdown, the first in the 28-year history of legalized gambling in New Jersey. Barring a breakthrough, the state planned to force the 12 casinos to stop taking bets as of 8 a.m. Wednesday.

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

The state Supreme Court on Monday evening denied the casinos’ request to continue operating while they appealed the shutdown order.

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. The proposal would cost the average New Jersey family $275 per year, according to experts.

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

With state government unable to spend, lottery ticket sales and road construction were halted, courts closed and about 45,000 state employees, more than half the government work force, were off the job. Only personnel deemed essential – including state police, prison guards, child welfare workers, and some administration staff – remained on the job.