Atlantic City has avoided a tax increase for 2015 under a budget approved by the state of New Jersey.
But the budget is counting on certain casino revenues being diverted to the city under a bill that has not yet received final approval from Governor Chris Christie.
Still, the state Local Finance Board approved the spending plan. The board overseas the city’s finances.
The $262 million budget uses millions in grants, transitional aid and a $33.5 million line item titled “Casino Redirected Anticipated Payment” to keep taxes level, according to the Press of Atlantic City. The budget also defers more than $38.9 million in employee health benefit and pension contributions.
The $33.5 million depends on the passage of a bill before Christie that is part of an overall package of bills to help stabilize the city’s finances. The main bill in the package would set a payment in lieu of taxes plan for city casinos to stabilize their tax payments. However, other bills divert casino moneys used for promotion of the resort and redevelopment projects to the city government.
Christie has had the bills for several weeks, but has yet to sign or veto them.
“It’s whatever the governor’s going to call it,” Atlantic City Mayor Donald Guardian told the Press. “Regardless, he can go ahead and acknowledge that there is no tax increase for the municipality.”
The city was able to make up a $101 million shortfall without a tax increase, partly due to cuts in payroll, Guardian said. The goal for the city now is too continue cutting operating costs and move away from transitional aid and grants to balance the budget in future years, Guardian told the Press.
