New Jersey Governor Chris Christie (R) yesterday rejected legislation intended to shore up the finances of Atlantic City, a move that could hasten the state’s takeover of the struggling casino hub, Bloomberg News reported yesterday. Christie vetoed a bill that would have established fixed payments from casinos instead of levies based on real-estate values, which would prevent tax appeals that strain the city’s finances. He declined to take action on bills that would have diverted some gambling funds to the city. Without those measures, the city will run out of cash in April, according to a report released Friday by Kevin Lavin, the emergency manager appointed by Christie. Atlantic City’s fiscal crisis was precipitated by the closure of a third of its casinos in 2014 as competition from neighboring states eroded its onetime dominance over gambling on the East Coast. The city’s gaming revenue last year was less than half its 2006 peak of $5.2 billion. Bankruptcy is now a possibility, said Mayor Don Guardian. "If the state is not able to come up with the funding we need within the next few weeks, we will have no choice but to declare bankruptcy," he said in a statement Tuesday. The state’s Local Finance Board must approve any filing.
