AC City Council Votes On Fiscal Stopgap Plan
by KYW's David Madden
TRENTON, NJ (CBS) -- City Council in Atlantic City is poised to approve a plan Wednesday evening that could put off the city running out of cash at close of business Friday.
A resolution would change the current 14 day payroll period for city employees to 28 days for a year. Several municipal unions have agreed to the change. But Governor Chris Christie says the move only forestalls the inevitable, by delaying the April 22nd payday to May 6th.
"They're counting on paying that payroll with the May receipts that come in," Christie told reporters at a news conference in Trenton yesterday. "But what that will mean is by mid-May, they'll be out of money and they will never be, never be back over positive cash flow again under the Mayor's current plan."
The Governor continued, "What the mayor's doing, his solution, quote unquote, is to delay payroll. That's like from the old Popeye cartoon, right? I'd gladly pay you tomorrow for a hamburger today."
Only the tab is getting longer. A judge yesterday ruled in favor of Borgata's move to sue for $88 million in overpaid taxes to the city. This, as Christie sues the city to make sure Atlantic City schools get their April tax infusion of $8 million on time.
The Governor, again, called for an Assembly vote on a takeover plan. A vote being blocked by the Speaker in the name of protecting municipal labor contracts.