Atlantic City under state control for 3 more years

The state of New Jersey will continue overseeing the fiscal recovery of Atlantic City until 2021, the Office of the Governor announced.

Gov. Phil Murphy has unveiled the report ‘Building a foundation for a shared prosperity,’ submitted to his office by Special Counsel James E. Johnson, which outlines various proposals to be undertaken before control of the city is given back to the local government.

“Atlantic City has a number of challenges that will only be resolved with significant direction from and partnership with the State,” the report read.

In May 2016, when Chris Christie was still governor, the Municipal Stabilization and Recovery Act (MSRA) was passed by the state legislature to remedy the bankruptcy faced by Atlantic City, whose casinos’ gross gaming revenue (GGR) had declined by 7.5% annually from 2006 to 2014, with some casinos closing down. With the legislation, a five-year period was given for the state’s takeover of local powers.