New Jersey rejected fiscal plan
The Governor’s administration rejected a five year plan to fight bankruptcy.
US.- The state Department of Community Affairs rejected the plan that aimed to set the city back on track towards a financial recovery. They passed the plan that combined revenue generators and cost-reducers measures that would help Atlantic City boost its economy and recover its potential in October.
The proposal would have cut spending and sell the largest tract of empty land to the water utility, and laid off 100 workers. Commissioner Charles Richman said that the plan didn’t bring as much stability as needed. “I would have much preferred to leave management of the city’s recovery in the hands of its municipal officials. However, I am constrained by the plan the city has placed before me. The enormous problems confronting the city did not occur overnight. City leadership has had ample time to improve the city’s financial condition, yet has avoided doing so in any meaningful way. The plan is not likely to achieve financial stability for the city,” said Richman.
Mayor Don Guardian said that he’s planning to appeal the decision in court. He considers that the plan is necessary to the crisis that Atlantic City is currently facing.
Atlantic City currently faces a debt of US$500 million, and the city debt grew to almost US$100 million over the last couple of years. In the last couple of years five of the twelve city casinos have closed their doors, including the Trump Taj Mahal, which stopped its activity in the last few months after a long fight with its former workers. The seven casinos that are still open to the public reduced their debts considerably in the last seven years, from US$20 billion to US$7 billion.