New Jersey chief backs state takeover of Atlantic City

New Jersey Governor Chris Christie has openly voiced his support for a revised plan to rescue the US state’s gambling resort of Atlantic City.

Introduced by Christie alongside Senate President Steve Sweeney and Atlantic City Mayor Don Guardian, the plan combines elements of previous strategies to help save the struggling gambling hub.

Christie, who is keen for the plan to be cleared by the end of February, said the strategy would allow the state to restructure city debt and terminate municipal contracts, including those with labour unions.

New Jersey already controls the city’s budget, hiring and other finances, but previous legislation put forward by Christie this month would allow for a more complete takeover of operations in Atlantic City.

The proposed plan would hand control to the state for five years, instead of the previously proposed 15-year period.

The plan would also reintroduce a form of legislation, which Christie previously vetoed, that has been designed to help boost cash flow and stabilise the city’s tax base with fixed payments in lieu of property taxes from casinos.

However, despite Christie’s support of the strategy, many in Atlantic City have hit out at the plan, claiming the state has enjoyed tax revenue generated by casinos in the resort, but New Jersey is not giving enough back now the resort needs support.

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