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Sweeney to A.C.: Without state help, 'good luck'

TRENTON - Facing fresh backlash from Atlantic City Mayor Don Guardian over a new state proposal to take over the city's finances, State Senate President Stephen Sweeney on Thursday accused the local government of doing nothing to stem its fiscal crisis and threatened to withhold state aid.

"As far as I'm concerned, you don't want our legislation? Fine," New Jersey Senate President Stephen Sweeney said in an interview at the Statehouse. "Good luck."
"As far as I'm concerned, you don't want our legislation? Fine," New Jersey Senate President Stephen Sweeney said in an interview at the Statehouse. "Good luck."Read moreCurt Hudson/For The Inquirer

TRENTON - Facing fresh backlash from Atlantic City Mayor Don Guardian over a new state proposal to take over the city's finances, State Senate President Stephen Sweeney on Thursday accused the local government of doing nothing to stem its fiscal crisis and threatened to withhold state aid.

"As far as I'm concerned, you don't want our legislation? Fine," Sweeney said in an interview at the Statehouse. "Good luck."

"They want money," he told reporters, "but they don't want to do anything to restructure its government."

Sweeney on Wednesday proposed legislation that would allow the state to assume the local government's power for five years. The state would have the authority to terminate contracts, restructure debts, abolish positions, dispose of municipally owned assets, negotiate collective-bargaining agreements, and other things, according to Sweeney's staff.

Gov. Christie, Sweeney, and Guardian held a news conference last month during which they signaled that all agreed Atlantic City needed greater state involvement.

But the mayor on Wednesday he felt "stabbed in the back" by Sweeney's new proposal and referred to the intervention plan as a "dictatorship."

"We're not the fascists here," he said.

Guardian framed the issue in terms of the civil and constitutional rights of Atlantic City's residents and elected officials, and would not rule out taking legal action against the state.

Asked Thursday how the takeover legislation had changed from a previous bill that Guardian had opposed, Sweeney said, "We've done everything we possibly can to work with them."

He added that after negotiating with Christie's staff, the new bill would establish early-retirement incentives "to help ease the pain" of layoffs.

"That was a big give by the administration," Sweeney said in the interview.

Christie's office did not return a message seeking comment.

Wall Street ratings agencies have warned that without state aid, Atlantic City could run out of money by April. The resort has struggled financially for years and was hit particularly hard by the closing of four of its 12 casinos in 2014.

Christie last month vetoed a bill that would have established a payment-in-lieu-of-taxes system for the casinos, but lawmakers said they had introduced similar legislation this week. Christie is said to support the idea if included with the takeover.

"I want to know what Mayor Guardian plans to do when they're out of money," Sweeney said. "What restructuring have they put forward? What plan have they given to anyone, except to say, 'I don't like yours?' "

Guardian could not be reached. But City Councilman Marty Small said Sweeney's comments Thursday "showed irresponsibility," adding that the mayor and council would have a full response to the legislation at a noon news conference Monday.

Assembly Speaker Vincent Prieto (D., Hudson) said he was reviewing the bill and probably would try to amend it to protect unions' collective-bargaining rights.

"Collective bargaining in this bill still is a problem," Prieto said. The state "can tear up contracts. I have an issue with that."

Sweeney, who also is vice president of the International Association of Ironworkers, said he did not want to break contracts but rather to renegotiate them. "But you know what happens with bankruptcy?" Sweeney added. "They go away."

As for the apparent détente Sweeney and Christie had reached with Guardian last month, Prieto, who did not attend the news conference, said: "You know that little mirror on the right side, that says objects might be closer than you think? That holds true in politics a lot."

aseidman@phillynews.com

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@AndrewSeidman