Nearly half of the city's obscene $260 million operating budget is legacy costs and debt service.
Atlantic City, the desperate resort community built on the broad shoulders of stupid math, is asking to be rescued on its own terms.
It sounds like an absurd request, but it helps to note that the present administration has made an honest effort to cut expenses -- Mayor Don Guardian has gamely trimmed one-quarter of his budget -- and the city has a right to self-govern if municipal circumstances were normal.
But reality intervenes. Count the ways: Four casinos have been shuttered in recent years, 8,000 jobs disappeared, the city's tax base has eroded by billions, it is facing a $102 million deficit in this fiscal year, it won't be able to pay for cops or garbage pickup in a few weeks, and its credit rating has dropped from Baccarat to Nickel Slots.
So ready or not, the state is coming in, nothing is likely to stop it, and that bankruptcy option floated a few months ago was an absurd notion conceived in a mayoral reverie.
What still deserves discussion, however, are the terms under which Gov. Chris Christie and State Senate President Stephen Sweeney will swing their Sword of Damocles over the next five years.
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Maybe Guardian was naive in recognizing how much power he would have to surrender as the state restructures Atlantic City's finances, but he wasn't the only one who had referred to this as a "partnership."
Toward that end, there are two bills that up for Senate votes Monday. The so-called PILOT bill, which allows casinos to make payments in lieu of taxes and relieves the city of tax appeals it can no longer afford, has widespread support.
But the governor won't sign it without the passage of a second bill, which gives the state's Local Finances Board authority over city functions, including renegotiating union contracts, restructuring the city's debt, and selling off its assets.
On this matter, Assembly Speaker Vincent Prieto is headed for a stare-down with the governor over collective bargaining rights that may be compromised in the process.
Another disappointment, however, is that the mayor's alternative bill was dismissed so abruptly. Guardian suggested legislation that creates benchmarks for the city to satisfy in order to receive state aid; and sets up an oversight committee of state and local officials. That way, it could prevent the state from selling off the city's Water Authority - Sweeney proposes selling it to the county - or devalued properties such as Bader Field.
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But Sweeney says there simply isn't time for committees; and he knows it isn't politically feasible for the mayor to bring finances under control by restructuring contracts himself.
Still, what is overlooked is that this mess isn't Guardian's fault, and he deserves to be involved after slashing his budget $50 million the past two years. He is open to more cuts.
Everyone knows the state of play here. The state won't provide any more stopgaps, and if these bills don't pass, the city goes into default. The state has the leverage and plans to use it. But it is making a mistake if it doesn't recognize the mayor's legitimate efforts, and decides to work around him rather than with him.
More: Recent Star-Ledger editorials.
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