The NJ State Assembly passed a set of bills on JUNE 11, that could go a long way to boosting the financial well being of Atlantic City.
The primary focus of the bill is focused on Casinos and their taxes.
- Casinos are barred from appealing their taxes.
- PILOT (Payment in lieu of taxes) will collectively make $120 million payment to Atlantic City for the next 15 years.
- Atlantic City schools would get less in casino tax money, but state aid could help fill that gap.
- Mandate health insurance and retirement benefits for casino workers
- Use large portion of casino 1.25% tax (‘CRDA cash’) to help pay down AC’s debt
- Eliminate Atlantic City Alliance and use their $30 million to pay down debt
While the CRDA is somewhat crippled financially by these actions, recent state initiatives like the ERG program could go a long way in back-filling some decreased CRDA activity. Ex: fund/seed/finance local projects.
The New Jersey Economic Development Authority (EDA) is an independent State agency that finances small and mid-sized businesses, administers tax incentives to retain and grow jobs, revitalizes communities through redevelopment initiatives, and supports entrepreneurial development by providing access to training and mentoring programs.
The bills now goes to the Senate for a vote on June 25. Senator Steve Sweeney will green light the bill, but it’s still unknown if NJ Gov. Christie will sign off.