For most Americans yesterday was parades, celebrations and firework displays for the annual 4th July holiday, but in New Jersey legislators were at work trying to break an impasse on the state budget. The unprecedented Independence Day special session does not seem to have resulted in any break through and, as from 8 a.m. today, casinos in Atlantic City will be forced to close along with state parks and historic sites. The courts, the state lottery and other local government offices and services are already closed.

At the centre of the dispute is Governor Jon S Corzine’s plan to increase sales tax by 1%. Analysts say that this would cost New Jersey families an additional US$275 per year. A compromise was suggested by the Senate president whereby half the money raised from the extra sales tax would be used to lower New Jersey’s high property taxes. Gov. Corzine on Tuesday expressed his willingness to compromise by finding more cuts and savings to help reduce the $4.5 billion budget deficit for his $31 billion spending plan.

Already there are thousands of state employees without work although health and safety services are being maintained and are exempt from the government shutdown. The 12 Atlantic City casinos are not allowed to operate as state regulators need to be in place. Both an appellate court and the state Superior Court on Monday denied a request by casinos to keep gaming operations running, citing insufficient grounds for relief. It is believed that contingency plans developed for natural disasters or terrorist attacks will be put in to motion at the Atlantic City casinos as they follow closing procedures. (E-07.05.06)

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