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June 11, 2015

New Jersey Assembly approves financial package to help stabilize Atlantic City

PILOT plan focuses on measures to reduce city debt

With Atlantic City about $400 million in debt, the New Jersey Assembly has approved a package of five bills aimed at helping the city stabilize its finances.

According to Newsworks, the bills would require casinos to make specified payments over the next 15 years instead of paying taxes. The PILOT plan, spearheaded by Assemblyman Vince Mazzeo (D. - Atlantic County), would require Atlantic City's eight casinos to pay $150 million over the next two years and $120 million annually for the next 13 years.

Parts of the plan that revolve around the casinos would face uncertainty moving forward, however, as four of the city's 12 shut down in the last year and state officials are currently at odds over whether and where to permit new casinos in North Jersey.

Other PILOT proposals include new state education aid for Atlantic City, mandated health insurance and retirement benefits for casino workers, the diversion of casinos' alternative investment taxes toward paying down debt, and the elimination of the Atlantic City Alliance to free up $30 million annually for other municipal uses, reports.

The state Senate is scheduled to vote on the new measures on June 25.