N.J. Assembly Speaker: Democrats set to talk A.C. compromise

TRENTON -- Assembly Speaker Vincent Prieto said Monday he spoke with Senate President Stephen Sweeney during the weekend about Atlantic City and plans to meet with him this week to reach an agreement over how to rescue the resort town from financial disaster.

"I had a good conversation with the Senate president and I look forward to a dialogue with him," Prieto (D. Hudson) told reporters.

For weeks, the two legislative leaders have sparred over what role the state should play in helping Atlantic City, which is low on cash and risks defaulting on its debt payments this year, analysts say.

Sweeney (D., Gloucester), backed by Gov. Christie, supports a full state takeover of the city's government. The legislation, which passed the Senate last month, would allow the state to modify or eliminate the city's labor contracts, dispose of municipal assets, dissolve agencies, restructure debts, and take other measures to cut costs.

Prieto says that bill would trample on public-sector unions' collective bargaining rights. He has refused to hold a vote on Sweeney's bill in the Assembly and has instead pushed for legislation that would require Atlantic City to meet certain fiscal benchmarks over two years before the state could intervene more aggressively.

His remarks Monday suggested the two Democrats could soon break the impasse. But an agreement would still need the support of Christie.

The Republican governor said last week that if the Legislature reached a consensus, "I'll consider it at the time."