TRENTON, N.J. (AP) – New Jersey Senate President Steve Sweeney said Monday he doesn’t want Atlantic City to turn into another Detroit, as he unveiled a proposal aimed at helping the resort town’s ailing economy.
Four of the city’s 12 casinos have closed this year and property values have fallen. Sweeney said the city’s property tax assessments have declined by as much as 55 percent.
“We have to stop the bleeding,” Sweeney said at a Statehouse news conference, joined by fellow Democrats Sen. Jim Whalen and Assemblyman Vincent Mazzeo. “What we’re not gonna do is do nothing and let Atlantic City become another Detroit.”
Sweeney said the long-term plan is aimed at stabilizing the financial relationship between the casinos and the city and assumes a $72 million cut in municipal and school expenses.
“I would say we could probably save a lot between shared services,” Sweeney said. “But it’s not going to be enough and then we’re going to have to bring the number to the state and work with the state to provide the hole.”
He estimated the plan would raise $305 million of the $377 million in taxes the city has levied to operate.
The plan would authorize casinos to make $150 million payments in lieu of taxes for each of the first two years and would redirect a tax on gambling and Internet gambling revenues to contribute $25 million to $30 million toward Atlantic City’s debt service. Casinos also would provide health care and retirement packages for employees, under the plan.
Sweeney also called for a re-evaluation of the Atlantic City Alliance, the group formed a few years ago as part of Republican Gov. Chris Christie’s plan to market the city outside the region.
Alliance Chairman Tom Balance said Monday the group would discuss the lawmakers’ proposal.
“(We) recognize the dire situation that has evolved since the ACA was founded and understand that we must consider all options to stabilize Atlantic City,” Balance said in a statement.
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Associated Press writer Wayne Parry in Atlantic City contributed to this report.
Copyright 2014 The Associated Press.
