More than a year since lawmakers first drafted a bill aimed at saving Atlantic City, New Jersey Governor Chris Christie has finally signed off on a financial rescue package for the stricken casino town.
Governor Christie put pen to paper on Friday on legislation that will see Atlantic City receive a loan from the state as well as regular tax payments from casinos amounting to US$120 million in the first year and growing by two percent each year afterwards.
However, the city must work quickly to create a balanced budget for 2017 and a five year recovery plan or risk being taken over by the state should they fail to make the necessary spending cuts.
Once a thriving gaming hub to rival Las Vegas, Atlantic City has just eight casinos remaining following a spate of closures in recent years, with fears as many as five more could be on the way out if things don’t change soon.
“These new laws will ultimately accomplish my mission to reform Atlantic City’s overblown municipal government and in turn protect local and state taxpayers from being perpetually abused by the special political interests who admit to owning this city’s elected officials,” Governor Christie said in a statement on Friday.
“For Atlantic City officials, the final countdown starts today. They know that if they fail to change their tendencies of wasteful spending and mismanagement, my administration will be empowered to immediately step in and do the job for them.”
Atlantic City has been given five months to show they have made significant budget progress.
