The New Jersey legislature yesterday approved a rescue package to lift Atlantic City out of its fiscal distress and give the struggling gambling hub more time to craft a recovery plan before facing a possible state takeover, Reuters reported. The compromise came after weeks of rancor between lawmakers, local officials and Governor Chris Christie (R) over the magnitude of state control. A Christie spokesman did not reply to a request for comment on whether the governor would sign the legislation. Christie told a local radio show on Wednesday night that he believed the measures give him "all of the authority I would need" and that he would decide quickly. Increased gambling competition in neighboring states has cut into Atlantic City's main source of tax revenue, and the decline in casino property values since 2010 has lowered the tax base a whopping 70 percent. Four of the city's 12 casinos closed in 2014 and remain shuttered. The latest bills retain key measures from previous legislation, but they give the seaside resort town more time — 150 days — to craft a balanced budget and five-year recovery plan before facing state takeover. The bills call for casinos to make $120 million of combined payments annually in lieu of property taxes for 10 years. Casinos are also to make additional lump-sum payments totaling as much as $110 million through 2023. Some alternative casino taxes would also be redirected to pay city debt service. In addition, the city could offer incentives for early retirement and delay for another year any repayment plan for its deferred pension and health benefit payments to the state.
