Protesters Disrupt Hearing On State Takeover Of Atlantic City
TRENTON, N.J. (CBSNewYork/AP) -- Dozens of protesters shouting "Stop the takeover!'' brought a hearing on the proposed state takeover of Atlantic City to a brief halt as a community activist was led from the room after refusing to stop testifying.
Steve Young, who leads the Atlantic City chapter of the Rev. Al Sharpton's National Action Network, refused to cede the microphone after nearly 10 minutes of testimony against the proposed takeover, leading a state Senate committee to go into recess.
"I'm not finished,'' Young said. "I will not stop.''
That prompted Sen. Teresa Ruiz to gavel the hearing to a halt as Young left the room, with a state trooper's arm around his shoulder. The hearing resumed a short time later, with the committee advancing the bill to a vote next week in the full Senate. Assembly Speaker Vincent Prieto has not yet scheduled votes in his chamber, holding out for a bill that does not allow the state to break police, firefighter and other public employee contracts.
The state takeover proposal would strip Atlantic City of most of its power and would give the state the right to break contracts, dissolve agencies and sell off city assets and land. The state is also considering a bill that would let the casinos make payments in lieu of taxes in return for not filing tax appeals with the city.
The plan would hold hostage tens of millions of dollars in state aid until Atlantic City adopts a fiscal austerity plan that the state considers acceptable.
Atlantic City Mayor Don Guardian called the plan "one-sided surrender.'' He said the seaside gambling resort moves closer to bankruptcy each day that state officials refuse to help it.
In a statement released before the hearing, Guardian noted that Gov. Chris Christie has twice vetoed a measure that would have helped Atlantic City's eight casinos stabilize their taxes, and helped the city prevent costly tax appeals that have contributed to a huge budgetary hole.
"Three summits, two takeover bills, and an emergency manager later, and Atlantic City has not yet seen the assistance it was promised in 2014,'' he said. "Meanwhile, the city inches closer towards bankruptcy each day.''
The stakes are high and the chips are down. The credit rating agency Moody's says Atlantic City will run out of money in the next few weeks if the two measures aren't approved.
Christie, the Republican governor, and Steve Sweeney, the Democratic president of the state Senate, support the takeover, saying Atlantic City needs to do more to tame its finances. Guardian, a Republican, says his administration cut $25 million from last year's budget and will cut the same amount this year, while acknowledging more needs to be done.
The city's finances have spiraled downward over the last decade as its casino industry cratered; four of its 12 casinos shut down in 2014, and Atlantic City's casino revenue has plunged from $5.2 billion in 2006 to $2.56 billion last year.
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