The Christie administration extended the term of a $40 million loan to Atlantic City that was due Tuesday, a move that was expected because the city's highly-publicized financial woes have locked it out of the capital markets.
Atlantic City now has until the end of June to repay the money borrowed in December to help the city pay its bills following a steep decline in property-tax revenues caused by casinos' successful appeals for lower assessments.
Kevin Lavin, Atlantic City's emergency manager appointed by Gov. Chistie in January, said last week that by June he expected to have detailed proposals on how to close Atlantic City's projected $101 million budget gap for this year. In addition, the projected deficit for the Atlantic City School District is $47.1 million.
Among the moves that Lavin will consider is the deferral of payments on Atlantic City's nearly $400 million in debt, including the $40 million loan and school district debt.