To: haqihana who wrote (744392 ) 7/3/2006 9:54:47 AM From: Hope Praytochange Read Replies (3) | Respond to of 769670 demorat VS demorats: No Progress on Resolving Tax Standoff By DAVID W. CHEN and LAURA MANSNERUS TRENTON, July 2 — As New Jersey residents prepared to start their workweek with only fragments of a government, Gov. Jon S. Corzine and Assembly leaders remained at odds on Sunday over how to end the state's first-ever shutdown. State services deemed essential, like child welfare and the state police, continued. But the state's most popular tourist draw, the casinos of Atlantic City, were ordered to close by 8 a.m. Wednesday, barring court intervention. When asked about the overall impact, Mr. Corzine acknowledged that "this is not in the best interest of the public in the short run." But he continued to insist that his proposal to raise the sales tax to 7 percent from 6 percent to help plug a deficit of $4 billion was the most fiscally responsible course. "It's time to fix it, so we don't have this kind of problem, year after year after year," he said during a tour of the State Police's communications center on Sunday morning. Yet Assembly Democrats, led by Speaker Joseph J. Roberts Jr., also remained resolute in their opposition to the Corzine plan. They met briefly at the State House in the morning but disbanded without releasing a statement. Several Assembly members said the caucus was standing behind Mr. Roberts despite some public defections last week. "I don't think it will go more than a couple of days," said Assemblywoman Joan M. Quigley, a Jersey City Democrat. "The media — and I love you all — have been portraying this as a battle between the governor and speaker. It's not." She said the Assembly and Senate also needed to go along, "and it's not an easy or simple process, but we're getting there." On Sunday evening, Mr. Corzine huddled with Mr. Roberts, Senate President Richard J. Codey and other legislative leaders at the governor's mansion, in Princeton. But the meeting broke up without any agreement. Mr. Roberts said the leaders would resume talks on Monday morning on the governor's proposed $30.9 billion budget.