With the city teetering on bankruptcy, Atlantic City officials are planning to close city hall and stop paying city employees in less than three weeks.
TRENTON -- With Atlantic City set to run out of money, local officials said Monday they will close city hall and stop paying city employees in less than three weeks as they continue to argue with state leaders about how to save the Jersey Shore gambling resort town from going bankrupt.
Mayor Don Guardian announced that "non-essential" local government functions will cease April 8 at 4:30 p.m. if the city doesn't receive state aid.
Guardian said "essential services" like police, fire, revenue collections, and some divisions in public works will continue to work during that time.
He added that the shutdown will last until at least May 2, when the city expects its next quarterly tax payments.
"The city is in discussions with the state to avoid and forestall what may be an imminent financial predicament," Guardian said in a statement. "Unfortunately, due to financial circumstances beyond our control, we will be forced to close city hall."
Christie says no to A.C. takeover changes
Guardian noted that both "essential and non-essential service employees" will not be paid during the closure. Health benefits for all city employees, he said, will remain active.
"We are greatly aware of the potential impact this will have on all of our employees," the mayor said. "We are making every effort to find solutions prior to the April 8 deadline."
The announcement is the latest shot fired in a standoff between the city and state over how to keep Atlantic City from bankruptcy -- a development that experts say would hurt the credit rating of other municipalities across New Jersey.
Hours earlier, Guardian spoke before the state Assembly budget committee in Trenton to ask for help, warning them that bankruptcy will "effectively kill one of New Jersey's most iconic cities" and that a financial "day of reckoning" was near.
"I don't see how that day of reckoning is in anyone's interest," the mayor said. "But yet it seems as if the state is hell-bent on playing a real-life game of chicken with our city."
For 40 years, Atlantic City has been the only place in New Jersey where gambling is legal, and the city has given billions of dollars to the state in casino tax revenue in that time. But the city has seen four casinos close in recent years amid ever-growing competition from gambling halls in neighboring states, causing the city's casino tax revenue to be cut in half.
Gov. Chris Christie and state Senate President Stephen Sweeney (D-Gloucester) have been pushing legislation that would allow the state to take over key functions of the local government for five years to stabilize the situation. It would permit the director of the state Local Finance board to restructure the city's debt, break union contracts, sell off city assets, and more.
But local leaders say the takeover goes too far, infringing on residents' civil rights to have the city's elected officials govern.
Plus, while the state Senate passed the takeover plan last week, the measure still needs the support of the Assembly. And Assembly Speaker Vincent Prieto (D-Hudson) has said he won't back the takeover because it would allow the state to sever local collective bargaining agreements. He has called for a compromise instead.
Prieto said in a statement Monday that he's "pleased to see the mayor says he's talking to the state because the governor already has authority to help Atlantic City avoid financial disaster."
"It's time for Gov. Christie to do his job and use his existing authority to resolve this once and for all," Prieto added.
Christie said last week that he will sign the takeover bill only as it reads now, without changes.
"I am not going to put any Band-Aids on Atlantic City anymore," the governor said. "And I am not going to be held responsible for fixing it if I am not given the tools to fix it."
Christie's office declined further comment Monday.
Sweeney told NJ Advance Media on Monday that it's "silly" for Guardian to threaten a city shutdown because local leaders have known the scenario for a while and haven't done enough to fix it.
"They've had two years. They knew this was coming. Now they're going to shut the government down?" Sweeney asked. "I guess that means what they don't want is gonna happen, which is bankruptcy."
Guardian has stressed that his administration has made major cuts in recent years and has worked hand in hand with a monitor and emergency manager the state placed in the city.
Instead of a takeover, the mayor wants the state Legislature only to pass legislation -- known as the PILOT bill -- that would allow casinos to make payments in lieu of taxes and end costly tax appeals that have plagued the city. The measure also would redirect about $60 million in other casino taxes currently given to marketing operations.
The Senate also approved that bill last week, but Christie has said he won't sign it without the takeover. He vetoed a similar measure in January even though it included changes he requested.
Brent Johnson may be reached at bjohnson@njadvancemedia.com. Follow him on Twitter @johnsb01. Find NJ.com Politics on Facebook.