November 09, 2016
After months of negotiations and on the brink of insolvency, debt-plagued Atlantic City was placed under the control of the state of New Jersey on Wednesday afternoon.
By a vote of 5-0, the state's Local Finance Board stepped in to turn over the city's assets and government decision-making to Local Government Services Director Timothy Cunningham, according to the Press of Atlantic City.
Members of the board rejected a proposed 5-year-turnaround plan that would have resulted in 100 municipal layoffs, budget cuts and the sale of the former Bader Field airport property to the city's water utility, among other emergency measures.
Atlantic City, which has seen five casinos close over a two-year span, has an annual budget deficit of about $100 million and a total debt in the range of $500 million. The city's tax base has also declined significantly in recent years.
Cunningham could not immediately say what role the city's elected officials would be relative to the state as the transfer of power takes effect.
Pending the outcome of the state's intervention, the takeover could extend to a maximum term of five years.
