A group of New Jersey Democratic lawmakers say they are ready to vote on a bill that would allow the state to takeover Atlantic City.
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But now he’s taking the city’s government to court to resolve a dispute involving funding for the local school district, a move that could send the resort into deeper fiscal distress.
The lawsuit was filed in Atlantic County in the name of state Department of Education Commissioner David Hespe.
“Atlantic City is headed for a disaster and North Jersey gaming is headed for a defeat if we don’t get our act together”, the Republican said.
“I urge the speaker again to post the bill”, Christie said, pointing out the assembly voting session scheduled for Thursday. Prieto has objected to the takeover as he believes that a state takeover will put an immediate stop to collective bargaining agreements.
Levinson backed him up, even though Christie backs Donald Trump for president while he supports Ted Cruz, he cracked.
Once a grand seaside destination, Atlantic City is nearly completely out of money. However Health benefits will continue to be provided, and schools will remain open.
At his press conference, the governor promptly trained his sites on public sector unions, those entities that he has consistently argued have handcuffed the speaker. As of April 1, the city had only $8 million of cash available for operations. Since 2010 Atlantic City has seen four of its 12 casinos close, including the mammoth Revel casino which cost 2.4 billion to build in 2012.
A measure to allow the state to take control of the city’s finances is stuck in the Assembly. I don’t think it’s a good situation. “We’re trying to ensure that they’re taken care of”.
“Now we know money is not going to be there”, he said. “All they want to do is play politics and rob the residents of Atlantic City of their right to self-government”.
Prieto dismissed Christie’s prediction and said the governor can campaign as he chooses. Guardian’s plan would delay payment to the unionized city workers, switching to a once-a-month payment plan. The city would be better off working to reduce costs and increase revenues under the state fiscal oversight that has been in effect since 2010.
The takeover would strip Atlantic City of most of its power and give the state the right to break contracts, dissolve agencies and sell off city assets and land.
“It used to be that more than 80 percent of our taxes came from casinos”.
This is the third-lowest credit rating from Moody’s and well into junk territory.
“Now down to the level of Puerto Rico”, Christie said. You want a new deal? “Vote against it, but the speaker’s irresponsible actions are now putting at risk one of America’s great historical cities”.
Christie has said he will only support the takeover bill that has passed the state Senate and that the city has had six years and failed to make hard decisions. “The fact is I’m not going to go in to Atlantic City with one hand tied behind my back”, he said.
Assembly Speaker Prieto refuses to post the AC takeover bill unless there are some changes, for example to preserve collective bargaining.
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The Governor and Mayor Guardian have been presenting differing plans on how to address the debt issue.
