Vol. 5 No. 3, March 2008
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Lawmakers attack casino shutdown
The last time New Jersey legislators failed to pass a budget on time, the government of the entire state closed, along with Atlantic City’s casino industry. Two South Jersey senators are working to make sure it doesn’t happen again.
In 2006, lawmakers missed the June 30 budget deadline, forcing a state shutdown that lasted three days. Because there was no way to pay casino inspectors (even though the casinos, not the state, pays these employees), the lights went out in Atlantic City.
The state lost almost $4 million in tax revenue, casino employees forfeited $10 million in wages and tips, and casino vendors also felt the sting. And the loss in casino revenue was also substantial.
Last month, District 1 Senator Jeff Van Drew sponsored a bill to make the Casino Control Fund independent of the state treasury, so casinos will be unaffected if lawmakers hit another stalemate. “We absolutely should not tolerate this embarrassment,” Van Drew said.
It could be timely legislation. With New Jersey awash in debt, the next budget could be even more problematic. Governor Jon Corzine’s proposal to mortgage state toll roads to pay off billions in bonds has met with howls of opposition from a fed-up public, and politicians are jumping on the anti-toll bandwagon.
District 2 Senator Jim Whelan, also of Atlantic County, is sponsoring a second bill to make any job essential that “preserves and protects the state's financial assets, resources and revenue generating operations.” The category would include casino inspectors and other employees of the state lottery, liquor and tobacco industries.
