New Jersey Lawmakers Finally Make Deal To Resuscitate Atlantic CityRescue Package Expected To Be Sent To Gov. Christie |
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Lawmakers in the Garden State Assembly and Senate have reached a compromise on how to help beleaguered Atlantic City, which faces the threat of losing its monopoly on brick-and-mortar casinos in the state.
The political fight lasting many months was largely over the timeline for Atlantic City to work out its finances prior to a state takeover. According to the Associated Press, the deal, which was agreed upon Monday, gives the nearly broke seaside town five months to devise a plan for balancing its budget over the next five years.
Previous proposals gave Atlantic City just months to basically completely fix its finances. Atlantic City has $550 million worth of debt and a $100 million budget deficit.
“Atlantic City’s locally elected officials will get the chance to right the ship,” Assembly Speaker Vincent Prieto said. The deal will give Atlantic City a temporary loan worth roughly $60 million. The city can also offer its employees early retirement.
Thousands of jobs were shed in Atlantic City when four casinos closed in 2014. No additional casinos closed last year, and it appears 2016 will be safe as well. However, a November referendum will decide whether casinos can be built in north New Jersey, something that experts have said will threaten some of Atlantic City’s eight remaining casinos.
The report said that the rescue package will likely be sent to Gov. Chris Christie this week for his signature. It’s no guarantee that he will approve it, given that Christie said Atlantic City bankruptcy is “preferable to continuing to write checks.”
Atlantic City Mayor Don Guardian told the AP that he supports the deal, which also gives the city $120 million each year from casinos in a plan for payments in lieu of taxes.
The move to help Atlantic City comes as neighboring New York makes progress toward adding a handful of additional casinos, and Pennsylvania moves to authorize online casino gambling. Online casino gambling in New Jersey is currently more than 90 percent of the American market, and the servers must be located in Atlantic City. Revenue from those games is at record levels.
A less drastic maneuver made by Atlantic City officials to boost tourism was an ordinance to allow open containers of alcohol on the boardwalk.
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