"The Senate is tired of hearing about Atlantic City," one lawmaker said. Watch video
TRENTON -- Atlantic City could be on the verge of bankruptcy as last-minute talks between state lawmakers over a compromise rescue plan stalled this week.
With the iconic seaside gambling resort possibly running out of money in a few days, state Assembly Speaker Vincent Prieto (D-Hudson) said last week he hoped to break a months-long impasse and negotiate a deal to aid the city, with the Assembly voting on it Wednesday.
But Assembly Democrats remained split Tuesday after days of back-room meetings and a vote is unlikely to take place.
Meanwhile, state Senate leaders who note they've already passed a rescue plan of their own -- which has the backing of Gov. Chris Christie -- accused Prieto of ignoring the compromises they've offered.
"The Senate is tired of hearing about Atlantic City," state Sen. Paul Sarlo (D-Bergen), a co-sponsor of the Senate's proposal, told NJ Advance Media. "Atlantic City fatigue has set in. The Senate has voted on a bill. My focus is now on the (state) budget."
"We're moving on," Sarlo added.
A.C. drama explodes as Prieto cancels vote on rescue bill
But Prieto dug in again Tuesday.
"I'll be as clear as I can -- those who want to avoid Atlantic City going bankrupt better sit down and negotiate seriously with the Assembly to protect civil and worker rights or push the governor to use his existing authority," he said in a statement.
The Senate's bill would authorize the state to take over Atlantic City's government for five years. But Prieto has staunchly opposed it, partially out of fear it would allow the state to break union contracts.
He's pushed an alternative plan to give the city two years to fix its issues before a takeover happens. But Prieto canceled a planned vote on the measure Thursday when it appeared it didn't have enough votes to pass.
Assembly Democrats then spent Friday and Monday discussing a possible agreement -- and it appeared Monday they were close to one.
But Prieto sparked a mini-firestorm when he told reporters after the meeting that he did not feel pressure to act quickly because "bankruptcy is always the other option that's there."
Assembly Majority Leader Lou Greenwald (D-Camden), the Assembly's main sponsor of the takeover, said Prieto's remarks showed "carelessness."
"To go out and utter that word, it's like a trigger word," Greenwald told NJ Advance Media on Tuesday. "I can't explain that. I'm mystified by that."
Assemblyman Ralph Caputo (D-Essex), a Prieto ally, said the speaker's comments were taken out of context.
"Bankruptcy was always used as a term that was used to say, 'God forbid this doesn't work,'" Caputo said. "I've never seen that as his primary purpose at all. His purpose was to find compromise."
Christie released an angry statement Monday saying the speaker's "refusal to adopt a proposal that would avoid bankruptcy is incredibly irresponsible to the businesses, employees, and citizens of Atlantic City as well as to all other taxpayers in New Jersey."
In his own news release Monday, Prieto said he has sought "a compromise for weeks, but anyone who feigns shock that bankruptcy is a last resort isn't being honest with themselves or the public."
Experts say bankruptcy in Atlantic City could cause the credit ratings for municipalities across the state to drop. Greenwald noted that the threat has already caused hotel rates in the city to plummet, even as summer is approaching.
On Tuesday, state Senate President Stephen Sweeney (D-Gloucester), the main sponsor of the takeover, said he will not be part of the Assembly talks and noted that he has already "offered a compromise."
Sweeney called bankruptcy "the worst thing that can happen to the state of New Jersey."
Some lawmakers, however, believe it may be the smartest route.
"I just think it's the best opportunity to hit the reset button," Assemblyman Jack Ciattarelli (R-Somerset) said.
Assembly Minority Leader Jon Bramnick (R-Union) said Tuesday that "back-room Democratic deal-making just is not working."
"The only way we can break through this stalemate is to get all the legislative leaders to sit down and work together to find a solution," Bramnick said in a statement.
Brent Johnson may be reached at bjohnson@njadvancemedia.com. Follow him on Twitter @johnsb01. Find NJ.com Politics on Facebook.