TRENTON, N.J. (AP) – Gov. Jon S. Corzine urged lawmakers Tuesday to compromise on his plan to increase the state’s sales tax and approve a budget, which would end the government shutdown that threatens to extend to casinos and state parks on Wednesday.

“Make no mistake, people are being hurt and unfortunately more will be hurt in the days ahead,” the governor told lawmakers during an unprecedented Fourth of July special session.

The session came three days after Corzine started shutting down state government because lawmakers missed the July 1 constitutional deadline to approve a new budget. Without a budget, the government can’t spend money.

“All of us surely believe this circumstance must end,” said Corzine, a first-term governor and former U.S. senator and Wall Street executive.

Legislative leaders, speaking after Corzine’s address, said his speech wasn’t likely to resolve the stalemate right away. If no deal is reached, state parks and historic sites would close Wednesday along with Atlantic City casinos, which are required to have state regulators on duty.

The state lottery, road construction, motor vehicle offices, vehicle inspection stations and courts have already closed. More than half the state work force – 45,000 people – was ordered to stay home on Monday.

The dispute between the governor and his fellow Democrats who control the Legislature centers on his plan to increase the state sales tax from 6 percent to 7 percent to help overcome a $4.5 billion budget deficit for his $31 billion spending plan.

The proposal would cost the average New Jersey family $275 per year, according to experts.

“No one is seeking to increase taxes because they want to,” the governor said during his speech, as he detailed years of mismanagement of the state’s revenues.

Corzine urged the lawmakers to approve a compromise offered by Senate President Richard J. Codey that would use half the $1.1 billion raised by his sales tax increase to ease the state’s property taxes, among the nation’s highest.

“I’m willing to meet the Legislature half way,” Corzine told lawmakers.

He said the Legislature should keep working until a spending plan is approved. “We must stay here until we meet our constitutional obligations,” he said.

After the governor’s speech, Codey said he wasn’t optimistic Corzine and the leader of the tax hike opposition, Assembly Speaker Joseph Roberts Jr., would come together.

“I don’t see where either one is anyway going to change their position at this particular point in time,” Codey said.

“I think we’re as divided today as we were before the speech,” said Assembly Joseph Cryan, chairman of the state Democratic Party and a Corzine budget plan supporter.

State regulators have ordered the casinos to close at 8 a.m. Wednesday.

“When they shut down, then there’s no tourists, no conventions, no money for the workers. That’s not good,” said Ann Ji, who runs a beauty supplies store one block from the casino strip.