The shutdown ends...Quote »Corzine, Lawmakers Reach New Jersey Deal, Person Says (Update1)July 6 (Bloomberg) -- New Jersey Governor Jon Corzine and fellow Democrats in the Assembly agreed to a compromise today to end a budget impasse that shut down state government for six days and forced Atlantic City casinos to close, a politician who attended the negotiations said.Corzine and the lawmakers had been at an impasse over the governor's plan to increase the sales tax to close a $4.5 billion gap in a budget of almost $31 billion for the fiscal year that began July 1.Earlier this afternoon, State Senate President Richard Codey reported progress toward ending the standoff from meeting at the Statehouse in Trenton, saying ``a deal is in the works.''The breakthrough came after Corzine proposed another compromise to the Assembly to dedicate to property tax relief for 10 years half the proceeds of a sales tax increase to 7 percent from 6 percent.As word of the agreement spread, Assemblyman Gerald Green, a Plainfield Democrat, said officials hoped to get the casinos, which were shut down yesterday, reopened quickly. Gaming was halted because the required state inspectors were unavailable.``It'll take a little here and there but I'm hoping that in the next couple of hours the casinos will be back open and we can get people back to work,'' Green said. ``That's the main thing.''FurloughsThe governor halted non-essential state services on July 1 because without a budget for the new fiscal year, he has no authority to spend money. About 45,000 of 81,000 state employees were furloughed.Corzine, 59, in his third speech to the Legislature in as many days this morning, said he offered the compromise in the last 12 hours to try to end the shutdown that has closed state courts, parks, beaches, campgrounds, racetracks, the lottery and Atlantic City casinos. He urged lawmakers to ``end this mess.''Corzine said the compromise he offered ``provides billions of dollars of funding for property tax relief over 10 years, while implementing meaningful progress toward financial responsibility.''Assembly Democratic leaders opposed Corzine's proposal to put all of the $1.1 billion raised from a sales-tax increase toward reducing a $4.5 billion deficit in the budget.Assembly Democrats introduced their own budget last night that didn't include a sales-tax increase. Their $30.7 billion plan for fiscal 2007 would keep property-tax rebates at existing levels, restore $120 million of Corzine's proposed cuts to higher education and extend the current 6 percent sales tax to items such as security and temporary-employee services.To contact the reporter on this story:Stacie Servetah in Trenton at
sbabula@bloomberg.netLast Updated: July 6, 2006 16:15 EDT
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