Gov. Chris Christie rejected an Atlantic City financial rescue package Tuesday, putting the city at risk of running out of cash and possibly giving state lawmakers more leverage to take over the city.
Christie had until noon Tuesday
to act on the legislation, known as the PILOT bills. By letting the
deadline pass without action, Christie “pocket vetoed” the bills.
Legislation would have to be reintroduced in the new session. The
rejection also makes the city vulnerable to future casino tax appeals
like those that wrecked the city’s finances over the years.
Senate President Stephen Sweeney,
who recently introduced a bill that would amount to a state takeover of
the city’s finances, has cited the April cash-flow deadline as a reason
why the takeover is needed.
“Once again, our absentee governor has shown a brazen disregard to putting Atlantic City back on the road to fiscal recovery,” said Assemblyman Vince Mazzeo, D-Atlantic, another PILOT sponsor.
Christie conditionally vetoed the
bills in November, and the Legislature passed them again with his
changes. He didn’t explain why he didn’t act on the new PILOT bills.
“New Jersey has joined ‘Alice in
Wonderland,’” said Sen. Jim Whelan, D-Atlantic, a primary sponsor of the
bills. “Gov. Christie has vetoed his own bills.”
Major last-minute revisions to
the main bill required casinos to pay more, including regular property
taxes on new construction or improvements.
Those revisions included
recommendations from Lavin, who was appointed by Christie last year.
Advice from Lavin and the firms he’s hired has cost the state about $2.6
million, according to Reuters“Once again, our absentee governor has shown a brazen disregard to putting Atlantic City back on the road to fiscal recovery,” said Assemblyman Vince Mazzeo, D-Atlantic, another PILOT sponsor.
Assemblyman Chris Brown,
R-Atlantic, expressed frustration that he attended summits, worked with
lawmakers and met with experts in preparing alternative recovery plans,
“only to have the rug pulled out from under me and the families I
represent in the eleventh hour.”
Buena Vista Township Mayor Chuck Chiarello, a Democrat, said Christie is putting the city in a lose-lose situation.
“By the governor not signing (the
PILOT), even though they made changes the governor requested, it almost
forces a state takeover,” he said. “Now there is no other income source
coming in.”
Atlantic County Mayors
Association incoming President Jim Brown, the Republican mayor of
Mullica Township, said the 15-year timeframe of the PILOT was always a
problem for him.
“At this point, we really need to
find out what’s going to replace it” so the city can fix its finances,
Brown said, adding he has too many questions right now to say more.
Atlantic City Council President
Marty Small said Christie has a “horrible record” in Atlantic City, and
that the governor's action shows he cares more about running for
president than the residents of the city.
“We will bankrupt the city before we let people play political games and think they have leverage,” Small said
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