Gov. Chris Christie’s administration has seized power in Atlantic City, N.J., taking control of the assets and major decision-making in the struggling seaside gambling resort that is half a billion dollars in debt, the Associated Press reported today. The New Jersey Local Finance Board voted to take over the city’s main governmental functions after the state government rejected a proposed five-year financial turnaround plan. The state can now sell assets, as well as reverse city council decisions, break union contracts, and hire or fire workers, but declined to give itself the power to file for bankruptcy on behalf of the city. The takeover occurred a week after the state Community Affairs Department rejected a proposed financial turnaround plan that would have seen the city lay off 100 workers, cut spending and sell its largest tract of vacant land to its water utility, keeping both in private hands. The state said that plan did not provide sufficient financial stability for a city already heavily dependent on state aid.
