With Atlantic City inching closer to a government shutdown, multiple New Jersey Assembly members are calling for Gov. Chris Christie to compromise on a state takeover bill and use tools at his disposal to help the gambling hub avoid default.
Christie stated last week he will not support changes to "The Municipal Stabilization and Recovery Act" passed in the State Senate, which would empower New Jersey's Local Finance Board to renegotiate outstanding debt and municipal contracts for up to five years. The Republican governor also said he will not sign a companion bill that enables Atlantic City's eight remaining casinos to make payments in lieu of taxes for 10 years including $30 million collectively in 2016 without the state intervention. He noted that Assembly Majority Leader Louis Greenwald, D- Vorhees Township, canvassed his caucus and determined there are enough votes to pass both bills if Prieto moved them to the floor.
"The Speaker has, time and time again, expressed his willingness to sit down and work out a compromise that protects the city and public workers, but his calls for responsible and fair negotiations have fallen on deaf ears," said Assemblyman Marlene Caride, D-Ridgefield, in a statement Tuesday. "To oppose any dialogue with the Assembly given what's at stake is irresponsible."
Moody's Investors Service said on a March 9 report that Atlantic City could default on its debt by April without state assistance. To avert an April default, Mayor Donald Guardian is planning to shut down "non-essential" government services for at least three weeks starting April 8 so the city can pay county taxes and make a $600,000 debt service payment. Guardian has expressed opposition to the state intervention bill and pushed for the legislature to only approve the PILOT legislation.
"The Governor would have everyone believe that the only way to save Atlantic City from insolvency is to trample public workers, step residents of their right to a representative government and sell off city assets, perhaps irrevocably," said Assemblywoman Valerie Vainieri, D- Englewood, in a statement. "I commend Speaker Prieto for taking a measured and thoughtful approach to the situation and standing up against tremendous pressure while the Governor refuses to negotiate in good faith with one half of the state legislature."
Atlantic City has an estimated $102 million deficit for 2016, according to Moody's. The city budgeted $33.5 million last September in redirected casino taxes from a PILOT bill that Christie conditionally vetoed in November. The Jersey Shore resort town is rated Caa1 by Moody's and CCC-minus by Standard & Poor's with more than $400 million in outstanding debt.
"Speaker Prieto has continuously expressed an interest in sitting down and working out a compromise that still protects Atlantic City's future without trampling on the rights of the public workers who put their life on the line every day," said Assemblyman Ralph Caputo, D-Belleville. "There is far too much at stake right now to play politics with Atlantic City's future."
The press office for Gov. Christie did not immediately respond for comment Wednesday on whether he is open to any compromise on the pending Atlantic City legislation.
