New Jersey's Department of Community Affairs has hired Atlantic City business administrator Jason Holt to assist in its state takeover of the distressed city.
Holt, who has worked under Atlantic City Mayor Donald Guardian since 2014, will assist the DCA's Division of Local Government Services with addressing Atlantic City's financial and budgetary challenges. He was first tapped by Guardian as solicitor and then was named business administrator in December 2015.
"Over the past three years, Jason Holt has been an integral part of my team," said Mayor Guardian in a statement. "When I originally selected him as my solicitor and then as my business administrator, I did so because of his extreme intellect and professionalism. Obviously, the State sees the same thing in Mr. Holt."
New Jersey's Local Finance Board voted to implement state intervention under the Municipal Stabilization and Recovery Act on Nov. 9 after the DCA rejected the city's five-year recovery plan. Holt has worked closely in the last two months with Local Government Services Director Tim Cunningham and Jeffrey Chiesa, the designee in charge of Atlantic City financial matters, according to DCA spokeswoman Lisa Ryan.
"Mr. Holt's hire by DLGS formalizes the work he has been doing in practice for the last two months," said Ryan. "Mr. Holt will leave the City's business administrator position, although the work he will do for DLGS will largely be the same as what he is doing now."
Ryan said Holt will continue working out of Atlantic City Hall with his official first day with the DLGS set for Jan. 23. He will be paid $140,000, the same as his current salary with the city. Atlantic City will not be hiring a replacement for Holt, according to Ryan.
Atlantic City is facing a structural deficit of more than $100 million with $240 million in bonded debt and in excess of $500 million in total debt when factoring in casino tax refunds and other owed obligations. Guardian said in an unofficial state of the city address on July 4 that the 2017 budget is projected at $222 million, a $20 million drop from the current spending plan and $40 million less than in 2015.
Atlantic City general obligation bonds are rated CC by S&P Global Ratings and Caa3 by Moody's Investors Service. The junk-rated city has suffered five casino closures since 2014.
