The Casino Association of New Jersey is pressing New Jersey Gov. Chris Christie to not delay in signing an Atlantic City financial assistance package so that the financially strapped city can collect much-needed revenue in 2015.
The organization issued a statement on Aug. 31 saying if the legislation is not signed this year, Atlantic City will lose roughly $50 million and the lost revenue would likely need to be replaced at the expense of taxpayers. The package of five bills passed by the state legislature in late June authorizes casinos to make payments in lieu of taxes over the next 15 years, provides additional state aid to the Atlantic City School District and reallocates the casino alternative tax to pay debt service on municipal bonds issued by the city.
"As the clock continues to tick while we wait for Governor Christie to sign the Atlantic City Revitalization legislation, the price of inaction continues to grow and the fate of Atlantic City and the region hang in the balance," the CANJ said in its statement. "Every day that the proposed legislation is not adopted reduces the amount of revenue that the city may receive under the funding and jeopardizes the stability sought to be achieved by the legislation package."
Standard & Poor's slashed Atlantic City's general obligation credit rating three notches to B from BB in early August because of uncertainty over whether it can meet its fiscal obligations this year while facing a $101 million budget gap. Christie placed Atlantic City under emergency manager control in January prompting Moody's Investors Service to downgrade the city six notches to Caa1.
The press office for Gov. Christie did not immediately respond for comment on the CDA statement or whether he plans to sign the Atlantic City rescue package.
