New Jersey Gov. Chris Christie is seen after signing his first bill into law on his first day in office as Lieutenant Governor Kim Guadagno, right, looks on during a signing ceremony in the State House in Trenton Wednesday. (AP Photo/Rich Schultz)
By DONALD WITTKOWSKI Press of AC Staff Writer and JULIET FLETCHER Statehouse Bureau | Posted: Thursday, January 21, 2010 |
ATLANTIC CITY — In one of his first acts in office, Gov. Chris Christie signed an executive order Wednesday that will keep Atlantic City’s casinos open even if another state budget crisis forces a government shutdown.
The order declares state gaming inspectors and other employees at the New Jersey Casino Control Commission “essential,” meaning they would stay on the job in the event of a future budget impasse.
The casinos had to close down for three days in July 2006 when a state budget crunch forced gaming inspectors off the job. The casino shutdown, at the height of Atlantic City’s busy summer tourist season, cost the gaming industry an estimated $50 million to $55 million.
“Shutting down the government in that way, and having it affect the casinos, has had a long-lasting effect on the casinos even to this day,” Christie said in Trenton while signing the casino measure, one of eight executive orders he issued during his first day in office.
Christie’s action was praised by lawmakers, casino regulators and gaming executives as a crucial step for protecting an industry that generates hundreds of millions of dollars in tax revenue annually for state social programs benefiting senior citizens and disabled residents.
“In signing this executive order, Gov. Christie has shown that he clearly recognizes the importance of the casino industry for the economy of the entire state of New Jersey,” Casino Control Commission Chair Linda M. Kassekert said.
Joseph A. Corbo Jr., president of the Casino Association of New Jersey, the trade group representing the gaming industry, called Christie’s order “a common sense approach” to safeguard the 11 casinos, their employees and state gaming tax revenue.
“We appreciate the governor’s attention to Atlantic City at the outset of his term and look forward to working with his administration to continue Atlantic City’s progress towards the premier tourist and convention destination on the East Coast,” Corbo said in a statement.
Lawmakers said another casino shutdown would be a serious blow to an industry already reeling from the weak economy and extra competition from slot parlors in Pennsylvania, New York and Delaware. Casino revenue slumped 13.2 percent, to $3.9 billion, last year in Atlantic City’s worst performance since 1997. Declining casino income also caused a drop in revenue generated by the 8 percent state tax on the gaming industry.
“In 2006, New Jersey lost over $1 million in tax revenue each day when the casinos closed,” said state Assemblyman Vince Polistina, R-Atlantic. “We couldn’t afford that impact four years ago, and we certainly can’t take that kind of hit today.”
Christie said Polistina and fellow Atlantic County Republican Assemblyman John Amodeo helped persuade him of the need for the executive order. Amodeo stressed the financial hardships suffered by casino employees when they were out of work during the shutdown.
“The governor understands how vital the casino industry is to New Jersey’s revenue base and providing employment to many people who depend on it for their livelihood,” Amodeo said.
Casinos already have some protection from government shutdowns under legislation signed in 2008 by Gov. Jon S. Corzine. The measure allows casinos and horseracing tracks to regulate themselves for as long as seven days if lawmakers fail to pass a state budget by the July 1 fiscal deadline.
“We were already able to get a bill through that bought us a week in the event of a shutdown. This comes at it in another way,” said state Sen. James Whelan, D-Atlantic, while comparing the Corzine legislation with Christie’s order. “I argued at the time that the Casino Control Commission employees could be considered essential. But Corzine and the administration at the time didn’t think so.”
Christie’s order directs the Casino Control Commission to formally designate which employees should be classified as essential, although the agency’s 155 gaming inspectors will be granted that status.
Contact Donald Wittkowski:
609-272-7258