Aug. 26 (Bloomberg) -- Atlantic City, the New Jersey gambling resort where three casinos will close by mid-September, expects to eliminate almost 18 percent of its municipal workforce, Mayor Don Guardian said.
The city, buffeted by successful casino property-tax appeals and competition from neighboring states, had its credit rating cut to speculative grade by Moody’s Investors Service last month. It’s seeking to cut $40 million in spending over the next four years, Guardian said today in a conference call with reporters.
The workforce is down 80 positions through attrition, he said, toward a goal of 300 jobs eliminated. The mayor gave no date for cuts.
“I don’t believe that we can wait any longer for attrition to meet that,” Guardian said. “We’re looking at every department. There’s no one that we’re not considering.”
Atlantic City has about 1,250 full-time jobs, according to Michael Stinson, the city’s revenue and finance director. Salaries and wages account for 43 percent of budget appropriations, according to a bond-offering statement.
Moody’s on July 23 cut the city’s $245 million of general-obligation debt to Ba1, the highest junk grade, citing the reliance on the gambling industry, whose revenue has dropped for seven straight years. Caesar’s Showboat, the Revel Casino Hotel and Trump Plaza Hotel & Casino are to close by the middle of next month.
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