The state of New Jersey has contributed over $800 million to Atlantic City since 2016, aiming to stabilize the city's finances and address casino tax appeals. According to state records, the city received $269 million through Casino Reinvestment Development Authority investment alternative tax funds, which helped pay off debts incurred from casino property tax appeals. These appeals led to a payment-in-lieu-of-taxes (PILOT) plan for casinos that is set to expire next year. Some officials are working on extending this program.
In addition, more than $532 million in other forms of state funding, such as transitional aid, has been provided. This support has resulted in six consecutive property tax reductions and improved bond ratings. In 2015, Atlantic City's tax levy was over $128 million; by last year, it had decreased to $34.8 million. Mayor Marty Small Sr., during his State of the City address in January, stated: “This is money the City of Atlantic City is entitled to.”
Moody’s Ratings upgraded Atlantic City's long-term bond issuer rating from Ba3 to Ba2 in September, maintaining a positive outlook due to the city's stronger operating environment and structural improvements. The 2024 budget of $225 million included $120 million in state funds.
Marc H. Pfeiffer from Rutgers University noted that Atlantic City's economic structure makes it an exception when it comes to municipal budgeting due to its mix of luxury casinos and residents living below the poverty line. Lisa Ryan from the Department of Community Affairs explained that transitional aid supports municipalities facing fiscal distress with conditions aimed at eventually ending their need for such aid.
Mayor Small highlighted that while Atlantic City benefits from state funds, it does not receive revenue from luxury taxes or sports betting: “Remember, the Great City of Atlantic City doesn’t benefit from luxury, parking, sports gaming and other taxes where if we did, we wouldn’t need this additional funding.”
