New Jersey

Who Should Manage Atlantic City's Finances?

Atlantic City's mayor says the seaside gambling resort moves closer to bankruptcy each day that state officials refuse to help it.

In a statement released before he led a busload of city officials and residents to the state capitol to testify against a proposed state takeover, Mayor Don Guardian noted that Gov. Chris Christie has twice vetoed a measure that would have helped Atlantic City's eight casinos stabilize their taxes, and helped the city prevent costly tax appeals that have contributed to a huge budgetary hole.

"Three summits, two takeover bills, and an emergency manager later, and Atlantic City has not yet seen the assistance it was promised in 2014," he said. "Meanwhile, the city inches closer towards bankruptcy each day."

The state takeover proposal would strip Atlantic City of most of its decision-making power, and would give the state the right to break contracts, dissolve agencies and sell off city assets and land. It was to be considered Thursday in a state Senate committee, along with a bill that would let the casinos make payments in lieu of taxes in return for not filing tax appeals with the city.

The takeover plan would hold hostage tens of millions of dollars in state aid until Atlantic City adopts a fiscal austerity plan that the state considers acceptable.

Final votes in the Senate are scheduled for next Monday, but Assembly Speaker Vincent Prieto has not yet scheduled votes in his chamber, holding out for a bill that does not allow the state to break police, firefighter and other public employee contracts.

Moody's says that Atlantic City will run out of money in the next few weeks if the two measures aren't approved.

The city's finances have spiraled downward over the last decade as its casino industry cratered; four of its 12 casinos shut down in 2014, and Atlantic City's casino revenue has plunged from $5.2 billion in 2006 to $2.56 billion last year.

Copyright AP - Associated Press
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