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New Jersey lawmakers plan to extend state's oversight of Atlantic City
Competing proposals to prolong the state's management of many sectors of the city are surfacing in Trenton ahead of the expiration of the current statute.
A law that gives the state government in New Jersey control of many functions in Atlantic City is set to expire in 2026, but multiple lawmakers in Trenton want to see that situation continue. Debate over whether that oversight will continue to be as comprehensive as it currently is and for how long it will continue could occupy time in the state capitol to start the year.
Divergent frameworks for state control of Atlantic City
New Jersey has been managing Atlantic City since 2011; that management grew in scope in 2016 and then saw a second renewal in 2021. The breadth of the powers that the state holds includes planning and zoning in Atlantic City.
The state reserving that power for itself is just one of the points of contention between multiple proposals that legislators have given previews of for the 2026 session. Another major difference between frameworks is the duration of an extension.
Forthcoming legislation from New Jersey Assemblymember Don Guardian and Sen. Vince Polistina proposes a 10-year extension. A bill that Sen. John Burzichelli plans to bring forward, however, would only extend the state's oversight by six years.
Guardian and Polistina have argued that it's time for the state to return some powers to the Atlantic City Council and Mayor Marty Small Sr., like planning and zoning. Burzichelli's legislation, though, would mostly preserve the current structures.
Planning and zoning decisions will hold enormous sway over the future of gaming in Atlantic City. For that reason, debate over control of those considerations could be tumultuous, even as NJ online casinos continue to operate.
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Finances at heart of control of Atlantic City
At the time of the last renewal, legislators like then-Assembly member Vince Mazzeo moved to restore pieces of city services to Atlantic City's control while retaining oversight of the most significant financial levers like planning and zoning and property taxes. Among the goals for the city in Mazzeo's eyes were a reduction in the city's debts and an increase in local ownership of housing.
Atlantic City may have gotten closer to meeting those objectives over the past four years. A study suggests that half of Atlantic City homes were being rented out, which is a decline from 2021's estimate of 70%. Standard and Poor's Global Ratings gave Atlantic City a boost in 2024 as well, moving its general obligation debt grade from BB+ to BB.
However, those statistics could strengthen the arguments of Burzichelli and others who feel similarly, as those improvements have occurred under state supervision. To that point, the Standard and Poor's assessment stated that "the adoption of robust budget planning and monitoring procedures…has enabled structural balance."
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As the New Jersey Assembly opens its 2026 session, the future of governance in Atlantic City is sure to be a high priority. More of that governance could be in the city's hands before the year closes.
