ATLANTIC CITY, N.J. (AP) — Gov. Chris Christie called Tuesday for an imminent state takeover of Atlantic City, saying the seaside gambling resort is incapable of getting its finances together after years of overspending.
Christie, a Republican president candidate, said New Jersey needs to assert control over the city’s finances.
“Atlantic City’s finances are now the greatest threat to the city’s well-being,” Christie said. “The urgency of the city’s current financial predicament cannot be overstated.”
The move comes as the cash-strapped city ponders asking the state for permission to declare bankruptcy — a request that appears less likely to be granted in light of the takeover plan. The City Council was to discuss a bankruptcy filing Tuesday afternoon, but cannot actually make a Chapter 9 filing without state approval.
The struggling seaside gambling resort is still reeling from Christie’s veto of a financial aid package, $160 million in tax appeals from its top casino and the continuing slowdown of its casino industry.
A bill sponsored by state Senate President Steve Sweeney, a likely Democratic gubernatorial candidate next year, would give the state vast power over Atlantic City, including control over most of its major decisions, and the right to sell off city assets and land. The takeover plan would include that bill and legislation yet to be unveiled.
Christie has long been critical of Atlantic City’s municipal government, saying it spends far more than it takes in and repeatedly turns to the state for bailouts. Sweeney has said “there is Atlantic City fatigue in this building,” referring to the reaction of lawmakers from the rest of the state when Atlantic City seeks more money from the state.
The city is currently led by Mayor Don Guardian, a Republican entering his third year in office. He says his administration has cooperated with Christie in making painful budget cuts, and is willing to do more.
Atlantic City’s budget woes have been exacerbated by the cratering of its casino industry. In 2014, four of its 12 casinos went out of business. And many of the remaining casinos have successfully appealed their property taxes, convincing a tax court that they are worth less in a diminished market than they were when times were better.
Atlantic City’s casino revenue has fallen from $5.2 billion in 2006 to $2.56 billion last year.
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