After rejecting key elements of an Atlantic City relief package, New Jersey Gov. Chris Christie said he would meet soon with state Senate President Steve Sweeney to work on resolving the gambling hub's fiscal woes.
Christie and Sweeney, D-Gloucester, issued a joint statement saying they have agreed to "immediately sit down" to "construct a final and fast resolution path for Atlantic City." The Republican governor conditionally vetoed bills Monday that would have established a payments-in-lieu of taxes program for casinos over a 15-year period and reallocated the state's casino alternative tax to pay debt service on Atlantic City-issued municipal bonds.
State lawmakers had approved a five-bill Atlantic City relief package in late June designed to restore stability to a city facing a debt crisis.
Lawmakers now have until the end of its legislative session on Jan. 12 to make changes to the bills the governor conditionally vetoed.
"We remain jointly committed to Atlantic City's long term viability as a great resort destination for entertainment, gaming and sports," said Christie and Sweeney in their statement. "Additionally, we both now understand more clearly how challenging this revitalization will be as a result of all the hard work that ensued this past year."
Christie said in his conditional veto message to lawmakers that "many of the City's key stakeholders have failed to embrace the concepts of fiscal restraint and strong leadership and instead have settled on a course toward self-preservation and vacillation."
The governor appointed corporate restructuring attorney Kevin Lavin as the city's emergency manager in January. The governor's press office did not immediately respond for comment on when the meeting between Christie and Sweeney would take place.
Christie also issued a conditional veto of a bill that would have canceled a partnership the state's Casino Reinvestment Development Authority has with the Atlantic City Alliance and directed $60 million to the city for the next two years.
The one bill in the financial assistance package that Christie signed authorizes supplemental school aid to the Atlantic City School District.
Atlantic City was facing a $101 million budget gap for much of this year before adopting a 2015 fiscal plan in late September that relied partly on anticipated revenues of $33.5 million in redirected casino taxes included in the rescue package. The city has an $11 million debt service payment due in December, which Revenue Director Michael Stinson said will be made even if the redirected casino funds do not come through.
Four of Atlantic City's 12 casinos were shuttered last year amid competition from casinos springing up around the Northeast.
Atlantic City Mayor Donald Guardian is reserving comment "until he reviews exactly what the conditional vetoes are that the Governor is requesting", said his chief of staff, Chris Filiciello. City officials have a conference call scheduled today with the New Jersey Office of Community Affairs to discuss the impact of the vetoes.
"Since June, we've been hopeful that Gov. Christie would do the right thing and sign these bills without delay," said Assemblyman Vince Mazzeo, D-Northfield, whose district covers Atlantic City. "These bills were designed to bring real long term sustainable reforms to Atlantic City, help stabilize the tax base and generate new investments and business opportunities in the region."
Atlantic City is rated Caa1 by Moody's Investors Service and BB by Standard & Poor's.
