To: 10K a day who wrote (71088 ) 7/1/2006 10:11:32 PM From: Hope Praytochange Read Replies (1) | Respond to of 173976 Mr. Corzine, a Democrat in his first year as governor, said that he felt compelled to sign the order after he and the Democratic-controlled Legislature could not reach agreement on his proposal to help balance the budget by raising the sales tax to 7 percent from 6 percent. The governor has argued that the sales tax increase is needed to close a deficit of roughly $4.5 billion in the state's $31 billion budget. But a group of legislators, led by Assembly Speaker Joseph J. Roberts Jr., opposed the new tax, arguing that the deficit could be closed by cutting spending and expanding existing taxes. And even in New Jersey, where politics can be a contact sport, the body blows that accompanied the budget debate have been noteworthy. Earlier in the week, a legislator had to break up a shoving match during a committee meeting and Mr. Corzine, in a bit of gamesmanship, ordered a cot for his office, in a maneuver that aides said demonstrated his resolve to stay at the State House until he had a budget deal. Negotiations continued, in an effort to meet a midnight deadline on Friday, when the 2006 fiscal year ended. Mr. Corzine said on Saturday that talks had broken down between him and Mr. Roberts, though the sides had agreed on all but about $1 billion in spending cuts and revenue increases. Mr. Corzine has said he believes that the increase in the sales tax would generate about $1.1 billion. New Jersey had missed the June 30 budget deadline three times in the past five years, but no governor had ever ordered a shutdown, according to the state's Office of Legislative Services, the research arm of the Legislature.