TRENTON, N.J.-
As politicians haggled over how to fill a $4.5 billion budget deficit, New Jersey's fiscal crisis was being felt across the state–casinos were closed, state offices were shuttered and many state employees stayed home.
In addition to a shutdown at Atlantic City of the casinos, which are not permitted to operate without the presence of state inspectors, beaches, state parks and racetracks were also closed.
About 45,000 state workers and 36,000 casino workers are out of work. Unions representing both groups planned rallies in Trenton on Thursday to demand action to end the stalemate.
Gov. Jon S. Corzine, a Democrat, scheduled his third address in as many days to try to quell dissent from lawmakers in his own party who oppose his plan to raise the state sales tax.
Corzine wants to increase the sales tax from 6 percent to 7 percent to help overcome a $4.5 billion budget deficit and ensure reliable revenue to avert future budget woes.
But several Senate Democrats and most Assembly Democrats, led by Speaker Joseph Roberts Jr., oppose the sales tax increase, saying it's regressive and unnecessary.
Assembly Democrats on Wednesday laid out a $30.7 billion budget plan relying on a tax on other services, extending casino taxes and creating a new corporate income tax. The Assembly Budget Committee was scheduled to take it up Thursday after Corzine's speech.
The state's problem began when lawmakers missed a July 1 deadline to pass a budget. Without it, New Jersey can't pay state employees, meaning casinos can't legally operate without state inspectors.
Corzine furloughed more than half the state's employees. Only about 36,000 people in vital roles such as child welfare, state police and mental hospitals remained on the job, and they were working without pay.
Atlantic City casinos and state parks, beaches and race tracks were ordered to close Wednesday. Atlantic City's 12 casinos stand to lose more than $16 million a day, and the state $1.3 million a day in taxes from them.
Dealers were sent home in mid-shift, gamblers cashed in their chips before being ushered to the exits, and janitors locked the doors behind them.
"No one wants to see people lose their jobs. We hope this gets resolved as quickly as possible," said Linda Kassekert, chairwoman of the state Casino Control Commission.
While gambling ceased, the buildings–which also have restaurants, showrooms, stores and meeting space–stayed open. But many gamblers headed for the exits rather than stay around.
"I came down here to have fun, and this is hampering my fun," said Janice Sidwa, 60, of Williamstown. "Now we're trying to figure out what we're going to do all day. What else do you do down here?"
At Trump Taj Mahal, 150 people had canceled room reservations by mid-afternoon. Spokesman Tom Hickey said about 2,500 people would be out of work at the three Trump casinos.
Horse racing tracks did not open for business Wednesday, and state parks and beaches also were closed because of lack of staff. But overcast skies and rain kept most visitors at home anyway.
In Jersey City, Felix Morales showed up at the gate of Liberty State Park with his family to go fishing, but was turned away. "Why should the citizens pay for something that the government should have fixed before it got to this point?" he asked.
The effects of the budget stalemate have frustrated the state's plan to stockpile influenza medicine in case of a flu pandemic. Officials reserved 907,000 courses of antiviral drug Tamiflu from a federal stockpile, but can't order or pay for the drugs without a budget, said Dr. Fred Jacobs, the state health commissioner.
The deadlock was even being felt over the state line in New York, where limousine services reported cancellations as gamblers chose not to rent cars and drivers to ferry them to Atlantic City.
"I'm getting killed–people have canceled like crazy," said Stan Spirn, owner of Stan's Limousine Service.
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Associated Press writers John Curran in Atlantic City, N.J., Linda A. Johnson in Trenton, N.J., and Verena Dobnik in New York City contributed to this report.
