The gloves are off in Atlantic City as the resort’s mayor and city officials came out strongly against a plan in the New Jersey Legislature to essentially have the state takeover the city’s finances.
“Far from a partnership, it was absolutely a fascist dictatorship,” Atlantic City Mayor Donald Guardian said at a rally of more than 100 city workers, police and firefighters, elected officials, civil rights leaders, water utility advocates, and representatives of the state’s black mayors and League of Municipalities, according to Philly.com.
The rally comes after state politicians pushing for the plan had said the bill was more of a “partnership” between the city and state than a takeover. Guardian had initially stood with Governor Chris Christie and Senate President Stephen Sweeney, when the takeover plan was first introduced last month—calling it a “kumbaya moment,”—but was noticeably absent when revisions to the plan were announced two weeks ago.
The rally showed that for Guardian and the city, the partnership is gone and Guardian called the revised plan—which made very few changes and basically gives the state control of all city finances—an “insult to democracy” and a threat to similar cities across the state.
“If you believe in civil rights for all Americans, vote down this bill,” Guardian said. “If you believe in home rule and democracy, vote down this bill. If you believe in the rights of working men and women to elect individuals to represent their interests, vote down this bill.”
Guardian said the city will propose and alternative plan that will create specific benchmarks and goals for a fiscal recovery, and set up an oversight committee of state and local elected officials and residents, according to Phill.com. The city’s plan also would prohibit the state-directed sale of the city’s Municipal Utilities Authority—the city’s water utility—which has been a sticking point in the takeover plan.
State officials want the city to sell the authority to offset the city’s debt, but city officials say they need to protect the authority after the situation in Flint Michigan and also fear that water rates will rise for the city’s poorest residents if the authority is sold.
The takeover bill gives the state the right sell city assets—though it does allow the city a year to find a way to monetize the MUA—as well as to end collective bargaining agreements, terminate city employees and veto city council minutes.
A spokesman for Sweeney—the sponsor of the takeover bill—called the city’s proposal “far too little and way too late,” and said the city had failed to make the necessary cutbacks and reforms “to bring finances into line.”
“There isn’t enough time to form new committees that will eventually come up with new plans,” spokesman Richard McGrath told Philly.com “We can’t just give the city more money, because the results will only be the same.”
In comments prior to the city rally, Sweeney sounded frustrated.
“As far as I’m concerned, you don’t want our legislation? Fine,” Sweeney said in an interview. “Good luck. They want money, but they don’t want to do anything to restructure its government.”
At the rally, Guardian faulted the state for continuously blocking previous rescue plans and denying the city casino funds they thought they would receive and even budgeted for. Governor Christie has twice vetoed a plan that would have redirected some casino-funded marketing money and redevelopment plans to the city.
Those elements are part of the new takeover legislation—though in a separate bill—plus a plan to stabilize city casino tax payments through a set payment in lieu of taxes.
Guardian said that the more than $60 million in redirected casino taxes coupled with a hoped-for settlement with Borgata for $170 million in tax appeals would solve Atlantic City’s fiscal crisis, according to the Philly.com, which represents the Philadelphia Inquirer and the Philadelphia Daily News.
Borgata has already been allowed to withhold a $7.5 million quarterly tax payment to the city by a tax court judge. Guardian said that if the casino withholds another payment and the city does not receive aid, the resort would seek to declare bankruptcy.
“This is truly disheartening,” Guardian said. “So much time has been lost. The sad irony is, we have a casino industry that wants to redirect their funds to the City of Atlantic City to help avoid these doomsday scenarios.”
State Senator James Whelan—a former Atlantic City mayor and supporter of the takeover plan—however, told the Press of Atlantic City that the revised takeover plan has made significant concessions to the city. Among them: limiting the takeover from 15 years to five, leaving the city control over the water utility for an additional year, providing a financial rescue package to the city and encouraging early retirement incentives to avoid layoffs.
Christie spokesman Brian Murray called Guardian’s statements “political posturing,” and said the Christy supports Sweeney’s plan.
“Atlantic City will either have the money to pay their bills or they will not,” he said. “One thing is for certain: The taxpayers of all of New Jersey can no longer be asked to bail out Atlantic City, especially when they continue to tax and spend so irresponsibly.”
Guardian has long contended that the city, which is already fiscally monitored by the state and has an emergency manager appointed by Christie—has been adopting the state’s recommendations and cut $50 million out of its budget. The city has also reduced its payroll by 300 employees and has opened collective-bargaining negotiations with its police and fire departments.
The takeover bill would give the state’s Local Finance Board power over city government, operations, assets, departments, budget, and contracts for up to five years.
Assembly Majority Leader Louis D. Greenwald introduced the Assembly version of the takeover bill the same days as the city’s rally, but told the website Politico that he might not move forward with the bill unless local officials are on board.
“Unless we can get an understanding with the mayor and council, we may just not do anything,” Greenwald told the website. “We certainly want to work with them and don’t want them to feel that a dictatorship is being imposed.”
