What Atlantic City government shutdown means to casinos

TRENTON — City hall in Atlantic City might look like a deserted village come April 8. 

That's when the local government in the financially imperiled Jersey Shore town is set to close for three weeks. Every municipal employee — except police officers, firefighters, garbage collectors, and some others — would cease working. And no one would receive a pay check in that time. 

But as city and state officials continue to wrangle over exactly how to revive New Jersey's only gambling resort, one thing is certain: the city's eight casinos will remain open even as the local government essentially shuts down.

Officials say the casinos are independent operations and are regulated by state law. Thus, the casinos will run as normal and investigators in the state Division of Gaming and the State Police will remain "on hand to monitor the gaming," said Matthew Levinson, chairman of the state Casino Control Commission.

Atlantic City council president Marty Small said it will be "business as usual for the casinos."

"Business as usual for everyone except the employees at city hall," Small added.

Christie to A.C.: Cooperate or face bankruptcy

But a question remains: Will people around the state stay away from Atlantic City during the shutdown, possibly out of fear that it might not be safe?

State Sen. Jim Whelan (D-Atlantic) said that's "absolutely" a worry. 

"Even though there will not be a direct impact on the casinos, the adverse publicity — the suggestion of 'How are the cops gonna get paid?' — that plants in peoples' minds," said Whelan, a former Atlantic City mayor. "Uncertainty is not a good thing when you're inviting people to your town."

Local officials stress that the city's police and fire departments have vowed to work without pay, under the promise they'll be paid at a later day.

What residents won't be able to do is get court records, apply for permits, or seek other municipal help.

Whelan's message to tourists: "It'll be fine."

"You won't be able to get a building permit," he said. "I don't think the typical tourist at a casino cares about that."

What happens next in the struggle to rescue Atlantic City is much less clear, even though the city is weeks away from running out of money and is close to going bankrupt — a scenario experts say would hurt the credit rating of cities across New Jersey.

Atlantic City has given billions of dollars to the state in casino tax revenue over the last four decades. But four casinos have closed in recent years amid ever-increasing competition from neighboring states, and the city's casino tax revenue has been cut in half. 

While the state Legislature passed a rescue package, Gov. Chris Christie vetoed it in January, even though it included changes he requests. 

Instead, Christie and state Senate President Stephen Sweeney (D-Gloucester) have promised to provide the aid only if it's accompanied by legislation that allows the state to take over large parts of the local government. 

Gov. Christie Talks About Atlantic City Gov. Christie says he will only sign the bills that the Senate approved regarding the future of Atlantic City. (Aristide Economopoulos | NJ Advance Media)

Mayor Don Guardian and other city officials argue that the takeover goes too far and infringes on residents' civil rights. 

And while the rescue and takeover bills have passed the state Senate, they remain dormant in the state Assembly because Assembly Speaker Vincent Prieto (D-Hudson) wants the takeover to protect collective bargaining rights.

Prieto also said Christie has failed to deliver on a five-year-plan to fix the city's issues and that state law already gives Christie many of the tools a takeover would.

Guardian traveled to Trenton this week to ask for a bridge loan, but Christie's administration refused. Hours later, the mayor announced the shutdown, which will last until May 2, when new tax money comes in.

Christie said at a news conference Tuesday that the city should "either cooperate" or face bankruptcy.

On Wednesday, the governor unleashed a series of messages on Twitter to reiterate his stance. He argued that Atlantic City's government costs two to three times more than any other city in the state and that the "bipartisan" bills passed by the Senate together will end the city's "cash crisis."

A spokesman for Guardian's office did not immediately return a message Wednesday. The mayor and city officials plan to hold a news conference Thursday at city hall to discuss the shutdown. 

Also on Wednesday, the Casino Association of New Jersey, the group that represents the city's gambling halls, released a statement calling for a resolution to the arguing. 

"The inability to enact legislation to address our region's very unique situation has left city residents, the industry, and the hardworking families that rely on casinos and other city businesses for their livelihood in limbo with no path forward," the association said. "There is still time to salvage a viable solution, but clearly the time to act is now."

Brent Johnson may be reached at bjohnson@njadvancemedia.com. Follow him on Twitter @johnsb01. Find NJ.com Politics on Facebook.