Christie: No Dice On Atlantic City Funding Without State Takeover
NEWARK, N.J. (CBSNewYork/AP) -- The political gamesmanship between New Jersey Gov. Chris Christie and Democrats around the state is heating up.
But it's a fight with a fellow Republican causing Christie the most immediate concern.
Atlantic City Mayor Don Guardian warned this week that the resort town's collapsing finances will force a weekslong shutdown of nonessential government services next month if it doesn't get state aid.
Christie demands that a takeover measure already passed by New Jersey's upper house be approved by the Assembly. Christie told Harry Hurley' radio show he's not backing down on his stance on the issue, and will only agree to an aid package if it comes with a state takeover of the city, WCBS 880's Kelly Waldron reported.
"You've seen failed attempts to fix this problem before," Christie said. "I do not want this to become one of those failed attempts."
The state takeover proposal would strip Atlantic City of most of its power and would give the state the right to break contracts, dissolve agencies and sell off city assets and land. The state is also considering a bill that would let the casinos make payments in lieu of taxes in return for not filing tax appeals with the city.
The plan would hold hostage tens of millions of dollars in state aid until Atlantic City adopts a fiscal austerity plan that the state considers acceptable.
"If I don't have all the authority I need to as governor to be able to bring Atlantic County's finances into balance, then it will fail and we'll be back in the same position we're in now," Chrisite said.
Guardian and Democratic Assembly Speaker Vincent Prieto say the takeover bill goes too far, including by allowing union contracts to be torn up.
Guardian has previously noted that Christie has twice vetoed a measure that would have helped Atlantic City's eight casinos stabilize their taxes, and helped the city prevent costly tax appeals that have contributed to a huge budgetary hole.
Montclair State University political science professor Brigid Harrison says Christie is handling the controversies well. But she says Christie's failed presidential bid has created a new dynamic in New Jersey that opens him to attacks.
The city's finances have spiraled downward over the last decade as its casino industry cratered; four of its 12 casinos shut down in 2014, and Atlantic City's casino revenue has plunged from $5.2 billion in 2006 to $2.56 billion last year.
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