A.C. Will Face Major Budget Cuts if Christie Signs Rescue Bills

Photo | Dan McQuade

The future of Atlantic City is now in Gov. Chris Christie‘s hands. Or, rather, his pen.

A pair of state aid packages passed the Assembly and Senate today and are now awaiting Christie’s signature. The bills give the city 150 days to come up with five-year fiscal plan for balanced budgets. If Christie signs them, the city would have to cut roughly $100 million in its fiscal plan.

The city will get about $56 million for the 2017 state budget, with the money coming in state aid and redirected casino funds.

Both bills passed the assembly in the early afternoon. The Senate passed them later in the day.

“It is now up to city government, the Mayor and City Council, to make very difficult decisions and offer a clear plan to balance its budget,” Democratic State Senator Jim Whelan said in a statement. “I strongly urge the governor to sign these bills into law as soon as possible so we can begin to move forward.”

The Press of Atlantic City explains what determines how much the city will have to cut:

The city received $13 million in Transitional Aid in 2015 and applied for $40 million in 2016. If the city received Transitional Aid at the 2015 level, the city could still have to plug a hole of more than $30 million in 2017. No Transitional Aid could leave a gap of more than $40 million.

There is also an ongoing dispute with the Borgata, which has been withholding its tax payments because it is owed about $170 million in property tax refunds. If that situation continues, the city could have to cut even more.

Late last year, Gov. Christie vetoed a bill that would have plugged Atlantic City’s budget hole. As a result, the city has shut down for several weeks, flirted with bankruptcy and paid its bonds — but just barely.

In January Christie avoided the term “state takeover” and announced a “partnership” with Atlantic City. He was flanked by Atlantic City mayor Don Guardian at that press conference, but that coalition quickly fell apart. Christie later called Guardian “a liar.” The governor said earlier this month the city was only days to bankruptcy.

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