Now that Governor Chris Christie has received permission from the New Jersey Supreme Court to skip a .57 billion pension payment this year, the door could be open for financially troubled Atlantic City to do the same.
Last year, the Governor’s Advisory Commission on New Jersey Gaming, Sports and Entertainment issued a report that that recommended Atlantic City skip three years of pension payments as it tries to balance its budget.
According to the report, the city had upcoming pension payments of $22.8 million in 2014, $23.2 million in 2015 and $25.1 million in 2016. The report says the city is relying on unsustainable bond issuances in part to fund these pension payments.
Chris Filiciello, chief of staff for Atlantic City Mayor Don Guardian told the Press of Atlantic City that the issue of the pension payments hasn’t been decided.
“Pensions as a whole have always been discussed, but this wouldn’t be up to us; it would be up to the state,” Filiciello said Wednesday.
Advocates for city employees warned that skipping the payments could set a dangerous precedent.
