Atlantic City Rescue Plan Passed New Jersey Legislature
TRENTON, N.J. (CBS) - The New Jersey legislature, as expected, has approved an amended plan to pull Atlantic City government from the brink of bankruptcy.
The Assembly, where Speaker Vincent Prieto held things up for weeks, passed the amended bills with nary a peep. There was some debate in the Senate.
"There's not been an easy road to get here," said Atlantic County Democrat Jim Whelan, a former Atlantic City mayor. "But they are bills that will, in fact, help tremendously in stabilizing the situation in Atlantic City so that we can all move forward to the benefit not just of Atlantic City but the entire state."
One of those who voted in favor of the original plan opposed the compromise. Republican Senator Gerald Cardinale questioned how a $60 million bridge loan would be spent, along with the 150 day timetable for city officials to develop a five year financial plan or face a state takeover.
"I see this as enabling that mismanagement to continue, yes for a limited period of time, but for a period of time," Cardinale said. "And the losers are going to be the taxpayers from the rest of the state."
Senator Ronald Rice, a Newark Democrat , asked for another amendment that would have allowed for more flexibility in city officials meeting the fall deadline. That move was quickly blocked by Senate President Steve Sweeney.
The votes allow for the two bill package to proceed to Governor Chris Christie for his review. He is expected to make a quick decision, given his staff had been keep in the loop of legislative negotiations and the fact that Atlantic City Mayor Don Guardian expects to run out of money in mid-June.
The package also allows for PILOT payments in lieu of real estate taxes by the city's 8 casinos for the next decade. That move will stabilize long term revenue projections.