New Jersey state officials rejected the City of Atlantic City, N.J.'s five-year fiscal recovery plan, which would have prevented the ailing gaming destination from a state takeover.
"The enormous problems confronting the city did not occur overnight. City leadership has had ample time to improve the city's financial condition yet has avoided doing so in any meaningful way," N.J. Department of Community Affairs Commissioner Charles Richman said in a Tuesday, Nov. 1, ruling, posted on the department's website.
The Department of Community Affairs, the agency in charge of ruling on the fate of Atlantic City, had until Nov. 1 to approve a plan that would allow the city to remain in control of its finances and key decisions.
The city planned to file a revised plan to the state on Wednesday, The Wall Street Journal reported. It is unclear whether officials resubmitted the plan or if the state would even accept it.
Atlantic City Mayor Don Guardian, a Republican, did not return a request for comment.
Under the recovery plan, the city said it would implement cost cuts, settlements with casinos owed tax refunds, a new $105 million bond offering secured under the State Municipal Qualified Bond Act and a $110 million sale of Bader Field, the site of the former Atlantic City municipal airport, to the Municipal Utilities Authority.
The Municipal Utilities Authority provides water to Atlantic City.
Although Richman praised the city's plan to cut 100 part-time jobs, after already eliminating 358 full-time jobs, he said "it is not enough to substantially address one of the biggest cost drivers in the city's budget," stating that it lacks plans of how the city will increase operational savings.