TRENTON – Senate President Steve Sweeney issued the following statement today on the negative influence of the latest report on Atlantic City’s fiscal crisis issued by the so-called emergency managers appointed by the administration:
“The latest report by the so-called emergency managers is not only a failed substitute for real action, it is now having a negative influence on Atlantic City’s financial condition. The reaction by Wall Street shows that the report is making the situation worse.
“Standard & Poors reviewed the report and then said they might lower the city’s credit rating below ‘junk bond status,’ which would make it even harder for the city to work its way out of its dire fiscal problems. This is the same result caused by the appointment of the managers, which triggered a downgrade for the city and threatened the fiscal stability of other cities in New Jersey.
“And this morning, Moody’s said the ‘proposals are credit negative because they leave open the possibility of a default.’
“This is what Senator Whelan, Assemblyman Mazzeo and I repeatedly warned against. Obviously, the administration hasn’t learned from their mistakes.
“The report came to the same conclusion we reached five months ago, that decisive action is needed to stabilize Atlantic City’s finances and reposition the casino industry so that it can thrive in the future. The difference between our legislative plan and the managers’ report is that we had a plan of action and they don’t. Their failure to act is prolonging the crisis and their alarmist actions have backfired on Atlantic City and other municipalities and they could result in all of them paying the price for the administration’s mistakes.
“They have held three summits and issued three reports but they have done little to nothing to restore financial stability, protect local taxpayers, maintain public services or to give the gaming industry the ability to rebuild its business opportunities. They seem to want to keep playing a losing hand.”