TRENTON, NJ–New Jersey Senate President Steve Sweeney on Monday announced a plan he said would bring financial stability to Atlantic City and position the city for future economic opportunities.

The proposal comes in advance of a summit scheduled for Wednesday that will bring together government officials, community leaders, business and labor to follow through on the first meeting held in the wake of multiple casino closings.

Sweeney's plan calls for:

Stabilizing casino property taxes with a two-year “Payments In Lieu Of Taxes (PILOT)” in the amount of $150 million, followed by guaranteed tax payments, indexed on Gross Gaming Revenues, over the next 15 years;
Redirecting the Investment Alternative Tax (IAT) to pay Atlantic City's debt at an amount of approximately $25 million to $30 million annually:The IAT is a 1.25% tax on gross gaming revenues and a 2.5% tax on internet gaming revenues. Sweeney says redirecting these revenues will save residents $25 million - $30 million each year.
Reevaluating the Atlantic City Alliance (ACA)to determine whether it is fulfilling its original purpose.
Reduce Municipal Administrative Costs and ensure financial stability for the school system.The state can require these cost savings through its Transitional Aid powers, and a memorandum of understanding with the city. Sweeney says the state will have to take a pro-active role to ensure financial stability for the school system, including proper oversight.
Casinos will be required to provide a baseline health care and retirement package for its employees.

Sweeney says the proposal would bring immediate economic stability to Atlantic City and its casinos and lay the foundation for future economic growth that includes a financially-healthy gaming industry as well as other attractions as a “destination” resort city.

“This is a plan to protect Atlantic City from bankruptcy and position the city for future economic growth,” says Sweeney. “With four casinos already closed and one likely to close by the end of the year, Atlantic City is facing unprecedented financial challenges. We must take immediate action to stabilize the existing workforce, the casinos and the entire community – before we can move forward to help Atlantic City chart out its new sustainable future.”

Sweeney noted at a press conference Monday that Atlantic City's collective tax base was worth $20.5 billion in 2010, but Mayor Don Guardian has said the ratable base would sink to $9 billion next year, and eventually settle at around $7 billion later in the decade. No other city in New Jersey has seen its total property value drop 55 percent in the past 5 years, and it is expected to drop even further by the end of decade, says Sweeney.

“Atlantic City has been a great part of New Jersey's history and it has a great future,” says Sweeney.

In 2006, by this time of the year Atlantic City casinos had brought in $4.8 billion in Gross Gaming Revenue. In contrast, through September of 2014, gaming revenue is $2.1 billion.

“The revenue loss at the casinos has led to crashing values of casino properties with massive impacts on the city's property tax collection,” Sweeney said in a statement. “That is why these financial problems need to be looked at in their entirety and addressed with innovative solutions.”

“We need to bring stability and predictability to finances in Atlantic City,” says Senator Jim Whelan, a past mayor of Atlantic City. “I have lived in Atlantic City most of my live so I know what my neighbors are going through. I also believe that the city has great potential and a real future as a destination resort.”

“We need to stop the bleeding in Atlantic City,” says Assemblyman Vince Mazzeo. “This will help control property taxes and protect senior citizens, middle-class homeowners and other residents of the city. Reducing that financial burden on taxpayers is critical for the future of Atlantic City and the region.”

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Sweeney Unveils Plan to Address Atlantic City's Fiscal Crisis

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