Gov. Chris Christie of New Jersey signed legislation on Friday that will allow Atlantic City to avoid bankruptcy, for the time being.
Atlantic City will receive both a loan from the state and regular payments from casinos to help stabilize its finances. The money from casinos would amount to $120 million in the first year and increase by at least 2 percent each year for the next nine years, according to NYT.
If the City government does not prove capable of getting its finances in order with a balanced budget in the next 150 days after this funding, the legislation calls for the state of New Jersey to take over management of the city.
It appears that declaring bankruptcy, and forcing those who financed Atlantic City’s profligate spending to take a hit, never entered the mind of Christie. The banksters and their accounts must be protected!
(The entire statement from the Governor’s office is here)