New Jersey's Senate president on Thursday threatened to go to court if the men appointed by Gov. Chris Christie to revive Atlantic City's finances seek bankruptcy protection for the beleaguered gambling resort.
Democrat Steve Sweeney broke his silence a week after the Republican governor appointed a corporate turnaround specialist as the city's emergency manager and hired the man who led Detroit through its municipal bankruptcy as a consultant.
The decision eroded the city's bond rating and could have a negative financial ripple effect on New Jersey's other cities, the Senate president said.
"We cannot nor will we ever allow the city to go bankrupt," Sweeney said.
Speaking to a New Jersey Conference of Mayors meeting, Sweeney told Atlantic City Don Guardian, who was in the audience, "I've got your back."
Corporate finance expert Kevin Lavin and consultant Kevyn Orr have said talk of a Detroit-style bankruptcy filing for Atlantic City was premature.
Atlantic City lost four of its 12 casinos last year, and three others are in bankruptcy. The governor said the city's 40,000 residents are struggling to pay taxes needed to support its $260 million budget, and the local tax rate has doubled since 2010.
Local
Breaking news and the stories that matter to your neighborhood.
Sweeney claimed Christie picked a turnaround expert to bolster his image among Republicans as he considers seeking the party's presidential nomination.
Democrats led by Sweeney want to let casinos make payments in lieu of taxes — called the PILOT plan — and help reduce the city's debt.
The idea is to give the casinos cost certainty while eliminating costly and unpredictable tax appeals that have deprived Atlantic City's treasury of tens of millions of dollars in recent years.
An email seeking comment from a Christie spokesman has not been returned.
