Chris Christie’s apparent support for a renegotiation of Atlantic City’s debt could impair the credit ratings of other financially distressed New Jersey cities, Moody’s Investors Service has warned.
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Christie, however, remained adamant Thursday that he would only support the bill that has cleared the Senate, and rejected the bill that Assembly Speaker Vincent Prieto, D-Secaucus, introduced and that passed the Judiciary Committee unanimously with bipartisan support.
Prieto has refused to post the takeover legislation for a vote, saying it tramples on democratic principles like collective bargaining. What they did today, to go to court, for the payments for the school [board]: “Atlantic City is making their payments”, Prieto said after the Hudson County Democratic Organization endorsed Hillary Clinton on Monday.
Prieto said he has not yet spoken with Senate President Steve Sweeney, a fellow Democrat, about the bill, but called on him and Christie to consider it. A spokesman for Sweeney did not immediately return a call seeking comment Thursday.
Prieto’s bill also sets up an enforcement process if the city fails to meet each benchmark, but only then would the bill trigger more aggressive measures like dissolving city departments and changing or even scrapping union contracts.
“I’m sorry that he has to use name-calling”, Guardian said.
Atlantic City has made a change to how it pays its workers in an attempt to stave off a financial collapse.
Prieto’s proposal would infuse the debt-strapped city with casino cash, give it more time to recover its financial footing and protect union contracts for at least a couple years.
The move comes as Christie and Prieto trade barbs while pursuing different avenues to help the city and prevent ripple effects for other New Jersey municipalities. Despite that measure, public sector and industry unions testified in support of Prieto’s bill. It may be voted on next week, Prieto said.
At his news conference afterward, Guardian disputed many of Christie’s criticisms and laid much of the blame for his city’s fiscal crisis on the doorstep of the state, which has appointed monitors to oversee the city and school system.
City officials say they do not expect a decision Friday.
As of Friday, it had about $8 million in cash on hand, City Finance Director Michael Stinson said.
The difference between the Assembly bill and Christie’s package, which the Senate previously approved, “is the difference between a democracy and a dictatorship”, Guardian said.
A measure to allow the state to take control of the city’s finances is stuck in the Assembly.
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“At the core of this case is a Constitutional imperative that puts the children of Atlantic City first”, he said. “It is the right compromise for everyone, especially the people of Atlantic City”.
