The fiscal woes of Atlantic City, N.J. are creating a "ripple impact" for Atlantic County, according to Janney Capital Markets.
Standard & Poor's revised its AA rating outlook on Atlantic County to negative from positive on June 19 due largely to the uncertainty surrounding Atlantic City's eroding finances and tax base. Atlantic City, which is now under emergency manager control, comprises about a quarter of the county's tax base with its 10 largest taxpayers all casinos, said Janney Capital Markets managing director Alan Schankel in a June 25 report. Schankel also noted that recently released Bureau of Labor Statistics data shows that Atlantic County had the highest percentage of job loss of any of the largest 339 counties in the nation last year at 5%.
Despite pressures on its tax base, Schankel said county finances have been "consistent and solid" with a low debt burden and fund balances running at between 8% and 9% of revenue the since 2009.
Atlantic County led U.S. metropolitan areas in foreclosures during the first quarter of 2015, according to data from RealityTrac. The county had a population of 274,549 in the 2010 Census including 39,558 in Atlantic City.
