Murphy's freeze on state aid 'credit negative' for Atlantic City
ATLANTIC CITY — An executive order suspending transitional aid to the financially distressed resort is a credit negative, according to one ratings agency.
Moody’s Investors Service said Gov. Phil Murphy’s July 3 executive order that placed nearly $235 million in reserve, including Atlantic City’s $3.3 million in transitional aid for the current budget year, created uncertainty for nine impacted municipalities in New Jersey.
Moody’s noted that the loss of transitional aid is a “source of major budgetary pressure” and could result in “draconian cost-cutting or large tax increases.”
However, Moody’s noted that since transitional aid is typically not disbursed until the latter part of a fiscal year, “the risk, though real, is not imminent.”
Read more: https://www.pressofatlanticcity.com/news/local/murphy-s-freeze-on-state-aid-credit-negative-for-atlantic/article_130c5750-05b5-5940-9467-23fa67e685c3.html