New Jersey will continue to control Atlantic City’s finances through 2021, despite Governor Phil Murphy’s campaign promise to end the control earlier.
When passed in 2016 under then Governor Chris Christie, the state was to control the city’s finances for five years as the city faced bankruptcy and default on several debts.
A timetable recently laid out by Lt. Governor Sheila Oliver would keep the takeover in place through 2021.
The law enacted in 2016 “was a 5-year statute,” Oliver said during a recent community meeting. “We anticipate the statute will run for a 5-year period.”
At the end of the five years, Oliver said, she hoped to demonstrate to the state Legislature that enough has been fixed in Atlantic City to end the takeover.
Under the takeover, the state has broad powers, including the right to overturn decisions of the city council, override or even abolish city agencies and seize and sell assets. The state monitors can also hire or fire workers, break union contracts, and restructure the city’s debt.
When enacted, the city faced some debilitating debt, mostly brought on by successful casino tax appeals as the city’s casino industry was struggling in the face of competition from casino in other states. Five city casinos closed starting in 2014.
The state has successfully renegotiated several of those tax settlements.
Mayor Frank Gilliam Jr. told the Associated Press that he supports the state’s timetable for ending control and praised a recently announced plan for the city developed by state and local elected officials and community leaders to improve the resort’s economy.
The plan calls for reforms in government effectiveness and accountability, job training and economic development, finding new revenue sources and providing more opportunities for youth. The plan also suggests a review of the city’s casino regulations and a possible cap on casino licenses issued in the resort.
“I don’t foresee this plan failing,” Gilliam said. “For so long, folks have believed that Atlantic City could not flourish within its own self. The Debbie Downers of Atlantic City need to jump off that horse.”
