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2 Plans To Save AC Now In Play As NJ Assembly Speaker Unveils Alternative To State Takeover

By David Madden

TRENTON, NJ (CBS) -- New Jersey Assembly Speaker Vincent Prieto unveiled his alternative to Governor Chris Christie's takeover plan for Atlantic City. That proposal was unanimously approved this morning by the Assembly Judiciary Committee in Trenton.

Prieto's measure creates a 5 member committee with the mayor and city council president taking part, with a special master appointed by the courts overseeing a 5 year process for economic recovery.

Prieto insists this is not an outright takeover of Atlantic City. "The state of New Jersey should not be in the business of running municipalities," he told committee members. "We have our own house to keep in order."

Benchmarks are set for the city to meet in terms to trimming the size and cost of government. If not met, the committee would get more control which could, after 2 years, address existing labor contracts.

Among those speaking in favor of the plan was Atlantic City Mayor Don Guardian."We need to right size. We need to make sure that we're not living beyond our means and we come there willing to do so," Guardian said. "But the difference between this bill and the takeover bill is the difference between a democracy and a dictatorship."

But a split within Democratic party ranks in the Assembly shows the discord over the tactics being used here. Assembly Majority Leader Lou Greenwald penned a letter to the speaker calling for immediate consideration of the Christie plan that passed by large bipartisan numbers in the senate. In the letter, Greenwald says "The time for double-secret probation has long passed. As a result, the city cannot be trusted and the time for waiting is over."

Christie has held firm to a pledge that no additional aid will be approved without his exact plan to run the city, which puts just about everything in state control, including municipal labor contracts.

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