Atlantic City Mayor Donald Guardian says he’s seen a draft of a state-appointed financial manager’s report on the city’s finances and finds it “hard to disagree with.”
Kevin Lavin was appointed as a financial manger by Governor Chris Christie early this year and was expected to release a report on the city’s finances in June. The delay has led to criticism from many city officials and lawmakers looking to move forward in solving the city’s financial problems.
Guardian, however, said he’s seen a draft of the report and it calls for more municipal layoffs as well as increasing city revenue from casinos and through state aid. The report also calls for regionalization of some services and better monetizing of city assets.
Guardian told the Press of Atlantic City that reducing labor costs is essential since the city pays longevity costs on its employees.
“That’s what really kills us,” Guardian said. “We pay 75 percent of their health benefits for them and their spouse, forever, until they both die.”
Guardian also called on the state legislature to adopt a plan that would allow city casinos to make payments in lieu of taxes for 15 years to stop expensive tax appeals that have cost the city. Governor Chris Christies has conditionally vetoed the bills and the legislature has until January to act on his suggested changes.
