Gov. Chris Christie reiterated his call for the Assembly to approve an Atlantic City state takeover bill Thursday, emphasizing that the credit health of other New Jersey municipalities is at stake.
Christie said during an afternoon news conference that Assembly Speaker Vincent Prieto, D-Secaucus, is putting "the livelihood of people in Atlantic City at risk" by refusing to bring state intervention legislation up for a vote after it was passed in the State Senate. The Republican Governor said the bill, which would empower New Jersey's Local Finance Board to renegotiate outstanding debt and municipal contracts for up to five years, is the only solution to address a $100 million budget deficit and not acting will hamper bond ratings for other cities throughout the state.
"What he is doing is placing the full faith and credit of not just Atlantic City, but a number of other municipalities in this state at risk," Christie said, arguing that other cities' borrowing power may be hurt if Speaker Prieto blocks the intervention bill. "Newark, Union City, Paterson, Trenton, Camden will all be at risk for significant downgrade if this situation is allowed to continue going forward."
Christie maintained his opposition to a companion bill to allow casinos to make payments in lieu of taxes for 10 years, including $30 million collectively in 2016, without state intervention powers. He said the PILOT legislation alone is insufficient to solve Atlantic City's fiscal pressures, because it would still leave $30 to $40 million annual budget gaps starting in 2017. Atlantic City Mayor Donald Gaurdian has said he will explore a bankruptcy filing with the state absent state assistance on the city's more than $400 million in total debt. Christie said Thursday he won't support this route because of the spillover effect it would have throughout the Garden State.
"An approval of bankruptcy by this office would have the potential of an awful downstream effect for other municipalities in this state," Christie said.
Christie said he left a message with Speaker Prieto early Thursday to set up a meeting Friday discussing the Atlantic City relief package. The state legislature is scheduled to move back into session on April 7.
"Whether the governor likes it or not, he cannot break collective bargaining without likely violating federal and state constitutional rights," Prieto said in a statement after Christie's press conference. "I am still willing to compromise, and welcome the governor's call. I will see what the governor has in mind, but it must be a real compromise that protects core principles."
Mayor Guardian announced last week "non-essential" government services would be shut down for at least three weeks starting April 8 so the city can pay county taxes and make a $600,000 debt service payment. City officials are exploring having employees paid on a 28-day period starting next Friday instead of 14 days to allow government services to stay open. Christie said in his press conference that this option "just puts off the day of reckoning."
The press office for Mayor Guardian didn't immediately respond to a call for reaction to Christie's comments.
