Like Detroit, the casino town on the Jersey Shore faces declining revenues, retiree obligations and other expenses it can’t pay for. Gov. Chris Christie appointed an emergency manager earlier this year, and former Detroit Emergency Manager Kevyn Orr is advising. The duo released a report Tuesday (see below), calling for layoffs and cuts but not a bankruptcy filing. Here’s the Philadelphia Inquirer’s story, which begins:
Warning of a liquidity crisis through 2015 and a revenue decline “a lot more severe” than they had anticipated, Atlantic City’s emergency managers on Tuesday recommended $10 million in budget cuts, hundreds of layoffs, and mediators to negotiate with casinos and unions. The 60-day interim report by Kevin Lavin and Kevyn Orr, appointed by Gov. Christie, highlighted a $101 million budget shortfall for the city and a $47 million shortfall for the school district, but was short on details of how the city’s long-term financial woes can be solved.
The Wall Street Journal wrote in this piece:
Releasing a much-awaited report on the city’s future, the emergency managers laid out about $130 million in proposed cuts to close the shortfall. They anticipated further challenges for the struggling gambling resort, saying Atlantic City “simply cannot stand on its own” and probably would need significant state help for the foreseeable future.
And the local newspaper, The Record, weighed in with this:
Hundreds of Atlantic City’s full-time workers could be laid off to close a multi-million dollar budget gap and address a fiscal crisis that is “a lot more severe than we thought,” a financial expert hired by Governor Christie said Tuesday.
As a finale, we bring you PhillyMag.com’s “5 Charts That Show Just How Screwed Atlantic City Is.”