Governor Anibal Acevedo Vila said he would agree to a lower sales tax than he had previously said was necessary to secure an emergency line of credit to finish out the fiscal year, but the Senate and House of Representatives did not offer a proposal.

The island currently has no sales tax.

All 1,600 public schools on the island closed Monday, two weeks before the end of the academic year, along with 43 government agencies.

The island closed 43 government agencies and the public schools, granting an unscheduled holiday to 500,000 students — and leaving many parents suddenly without a paycheck.

The government is Puerto Rico's largest employer, with some 200,000 workers. Salaries make up about 80 percent of the government's operational costs.

The shutdown — the first in Puerto Rico's history — happened despite last-minute attempts by Acevedo and lawmakers to agree on a bailout plan.

Puerto Rico is saddled with a $740 million budget shortfall because the governor and lawmakers have been unable to agree on a spending plan since 2004. Conflicting sales tax proposals have been floated that would allow the island to secure a line of credit so it could pay public salaries through June 30.