Statehouse Showdown Over Atlantic City Takeover Plan

A showdown over the future of Atlantic City is shaping up in Trenton.

A state Assembly committee on Thursday will consider a measure by Speaker Vincent Prieto that seeks to re-cast assistance to struggling Atlantic City on his own terms.

The move flies in the face of a veto threat by Gov. Chris Christie, who has said he will only sign the two Atlantic City aid bills already were passed by the state Senate. [[374848341, C]]

Prieto's bill, unveiled late Wednesday night, combines elements of a two-bill package that he has refused to put up for a vote in the Assembly. It lets casinos make payments to the city in lieu of property taxes, and would give the state authority over the city's finances, but only if the city fails to meet certain performance targets. [[374822151, C]]

Prieto objects to provisions in the existing takeover bill that would allow the state to cancel union contracts.

"Collective bargaining and worker rights cannot be the first thing on the chopping block," Prieto said. "The expert committee created under this bill would be given a year to use its sweeping power to cut spending, save money and restore Atlantic City to sound financial condition. If it does not meet specific benchmarks, more draconian steps could rightly be taken, but worker rights must first be valued."

His proposal would establish a five-member Atlantic City Planning Committee consisting of state and local officials, including Atlantic City's mayor and City Council president. After a year, the committee would report on whether the city has met certain performance benchmarks to a special master appointed by the chief justice of the state Supreme Court.

If the special master agrees the benchmarks have not been met, the state could then do most of the things envisioned in the Senate version of a takeover bill, including canceling union contracts and selling off city assets and land.

Christie's spokesmen did not return messages seeking comment after Prieto unveiled his proposal at 9:30 p.m. Wednesday. But earlier that day, Christie again said he will only sign the legislation passed by the Senate with his approval.

The measures are designed to help Atlantic City deal with crushing financial problems brought on by the contraction of its casino industry, which has lost more than half its revenue — and four of its 12 casinos — since 2006.

The City Council passed a payroll maneuver Wednesday night that will prevent it from running out of cash and shutting down non-essential government services for about two months; without that vote, it would have run out of money on Friday.

Christie said Atlantic City's government has been unwilling or unable to take meaningful long-terms steps to cut spending and increase revenue.