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U.S. NEWS A5
Wednesday 27 January 2016
New Jersey:
Gov. Christie backs state takeover of Atlantic City
New Jersey Gov. Chris Christie speaks in Trenton, N.J. Christie The cash-strapped city has turns to the state for bail-
said Tuesday the state will assume vast control over Atlantic been pondering whether outs.
City’s finances and decision-making, saying the seaside gam- to ask the state for permis- Guardian, entering his third
bling resort is incapable of getting its finances together after sion to declare bankruptcy year in office, says his ad-
years of overspending. — a request that appears ministration has cooperat-
less likely to be granted in ed with Christie in making
(AP Photo/Julio Cortez) light of the takeover plan. painful budget cuts and is
The City Council was to willing to do more.
WAYNE PARRY age the governor vetoed discuss a bankruptcy fil- Atlantic City’s budget woes
Associated Press last week. That includes a ing Tuesday afternoon, but have been exacerbated
ATLANTIC CITY, New Jersey provision to let the city’s cannot actually make a fil- by the cratering of its ca-
(AP) — New Jersey Gov. eight casinos make pay- ing without state approval. sino industry. In 2014, four
Chris Christie said Tuesday ments in lieu of taxes and The struggling seaside of its 12 casinos went out of
the state will assume vast prohibit them from appeal- gambling resort is still reel- business. And many of the
control over Atlantic City’s ing their taxes. ing from Christie’s veto of remaining casinos have
finances and decision- “We have to fix this govern- a financial aid package, successfully appealed their
making, saying the seaside ment,” Sweeney said. $160 million in tax appeals property taxes, convincing
gambling resort is incapa- The legislation, which must from its top casino and the a tax court that they are
ble of getting its finances be approved by the state continuing slowdown of its worth less in a diminished
together after years of Legislature, will also let the casino industry. market than they were
overspending. state negotiate to restruc- Christie has long been criti- when times were better.
Christie, a Republican ture municipal debt, give cal of Atlantic City’s mu- Atlantic City’s casino rev-
presidential candidate, it the right to cancel col- nicipal government, say- enue has fallen from $5.2
was joined by the Demo- lective bargaining agree- ing it spends far more than billion in 2006 to $2.56 billion
cratic leader of the state ments, and sell off city as- it takes in and repeatedly last year.q
Senate, who has already sets and land.
introduced a takeover bill, Mayor Don Guardian, who
and the Republican mayor initially opposed a take-
of Atlantic City, who re- over, said Tuesday he de-
luctantly went along with cided to accept the state’s
the plan. “Atlantic City’s help.
government has too much “It’s time for some tough
debt and it’s too expensive decisions and some pain
to run for the tax base it as we move forward,” he
has,” Christie said. “Atlantic told reporters at a State-
City’s finances are now the house news conference.
greatest threat to the city’s Christie called for the leg-
well-being. The urgency of islation to be introduced
the city’s current financial and passed before the end
predicament cannot be of February, and he made
overstated.” a rare promise in advance
Christie and Senate Presi- to sign it. The state takeover
dent Steve Sweeney said would last five years in-
the takeover bill in the Leg- stead of the 15 envisioned
islature will be amended to in the original legislation.
incorporate elements of a Assembly Speaker Vincent
financial assistance pack- Prieto, a Democrat, said he
has serious concerns about
the state being given the
right to cancel collective
bargaining agreements.
Prieto, who was not at the
news conference, also
cautioned Christie and
Sweeney not to ignore him.
“If the Assembly is not in-
volved, then there is no
agreement,” he said.
