Here's an update
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Atlantic City employees will receive their last paychecks on April 8 if the city can’t raise more cash to pay them, city officials said Monday
“We are running out of money. Everyone is in trouble, but we all have a responsibility to the residents of Atlantic City,” said Chris Filiciello, chief of staff for Mayor Don Guardian.
Filiciello said he and Guardian are in Trenton meeting with the Local Finance Board director about assistance to bring money to the city to pay employees. He said there are ongoing discussions about the city obtaining bridge loans to cover costs.
The city is seeking a bridge loan from the state that could cover the city till May, when the city receives second-quarter property tax payments. The city’s junk credit rating makes it almost impossible for the city to borrow on its own.
“I don’t expect the state to write them a check,” Senate President Stephen Sweeney said on WOND when asked about the April 8, cash deadline.
There will be 40 fewer city employees by June, Guardian told the state Assembly budget committee Monday. There are 330 fewer city employees since Guardian took office two years ago. Guardian did not specify whether the cuts would be made through layoffs or retirements.
Guardian said Saturday that the city stopped paying overtime several weeks ago and ceased purchasing as well.
A big decision involved the city’s school district, Guardian said. The city will make its March monthly payment to city’s Board of Education to avoid school closures. The city made a $4.25 million payment to the school board this week, and will make another $4.25 million payment by Thursday, Guardian said.
“If we shorted the school, I don’t think they’d have any other choice but to close,” Guardian said. “They have no surplus anymore. So you could force the schools to close to keep the city open, but that’s just playing with our kids.”
The schools could have been closed for as long as 22 days had the city not made the payment, Guardian said.
Members of the police department said they will still report for duty even if they are not paid.
Atlantic City Police Officer Keith Bennett who also serves as the state delegate for the Policemen’s Benevolent Association, Local 24, said he met with Police Chief Henry White on Friday and was advised paychecks could stop after April 8.
“Chief White brought us in to tell us it’s a possibility after April 8, we won’t be getting paid. But, you know what? Every single officer I’ve talked to has said they are still coming to work to protect this city,” Bennett said.
Bennett said officers were notified over the weekend that their paychecks could stop. He said he has advised officers not make any large purchases at this time.
Bennett said officers will still receive health benefits because they are still employed, and death benefits will also be available, but there are still many legal questions that need to be answered.
“We’ve all taken an oath and when you have a mayor and an administration that has your back, and then you’re going to have his back and come to work and not let the city falter,” Bennett said.