Efforts to ask New Jersey voters to expand casino gambling to the northern part of the state have stalled amid a political battle
TRENTON -- New Jersey's top legislators agree on at least this much: Opening casinos in the northern part of the state is crucial.
It's needed, they say, for the Garden State's gaming industry to survive against ever-increasing competition from gambling halls in neighboring states. And it would provide money to revitalize and reimagine financially ailing Atlantic City.
But the plan has stalled recently amid a standoff between the top two leaders of the state Legislature -- one from the north, the other from the south.
And critics say the politics of New Jersey's next governor's race is largely to blame, even though that election won't be decided for nearly two years.
"We are obligated to do the right thing," said state Assemblyman Ralph Caputo (D-Essex), a long-time proponent of north Jersey casinos. "The fact is: We're looking for jobs and tax revenues we've lost. A game is being played that is unnecessary."
The stalemate caused state Senate President Stephen Sweeney (D-Gloucester) and state Assembly Speaker Vincent Prieto (D-Hudson) to miss a key deadline Tuesday to reach an agreement on their houses' competing proposals.
That means it will now be much harder for the Legislature to pass any casino expansion plan in time to get it before voters next November.
Top N.J. lawmakers remain divided on northern casinos as key date arrives
Currently, the state constitution allows casino gambling only in Atlantic City. But both measures would place a question on next November's ballot asking voters to amend the constitution to make way for two casinos in north Jersey.
It is estimated that the new gambling halls would bring about $4 billion in new investment to north Jersey and $3 billion in economic growth to Atlantic City over 15 years.
The problem, though, is the Senate and Assembly can't agree on who would be allowed to operate the casinos and how the tax revenue would be divided. Sweneey and Prieto have each made concessions in recent weeks to come closer to a deal but neither are sold on the other's measure.
Prieto noted that he increased the amount of tax money that would be allotted to Atlantic City to compensate for the revenue the resort would lose to north Jersey casinos.
"I'm willing to compromise," Prieto said. "But it takes two to tango. It can't be: My compromise is I come all the way to your side."
For his part, Sweeney said he has pushed forward despite an outcry from colleagues in south Jersey who fear gambling halls in the north would be the final bullet for Atlantic City, which has seen four casinos close and 10,000 jobs lost over the last two years. He also noted that north Jersey would see thousands of new jobs and billions in new construction and tourism dollars.
"For the life of me, I can't believe I am fighting to get two casinos in north Jersey," Sweeney said. "This is supposed to be about everyone winning. This isn't supposed to be north vs. south."
2017 AT PLAY?
But many say the biggest stumbling block is 2017, the year of the next governor's race. Sweeney is considered a likely contender for the Democratic nomination, and so is Jersey City Mayor Steve Fulop.
Some lawmakers have accused Fulop, a rising star in the state Democratic Party, of interfering in the casino debate to prevent Sweeney from scoring a victory -- even though one of the new casinos could be built in Jersey City.
State Sen. Loretta Weinberg (D-Bergen), a north Jersey lawmaker who has long been a Sweeney ally, ripped Fulop this past week.
"I don't know any other mayors that have been involved in this," Weinberg said.
State Sen. Joseph Kyrillos (D-Monmouth) had similar criticism when he released a statement urging the Senate and Assembly to come back to the negotiating table.
"I'm very surprised that Jersey City Mayor Fulop isn't using his considerable influence over the Assembly to motivate a compromise," Kyrillos said. "This measure will be a new jobs-creating, revenue-generating economic sector, and remarkably may be centered in the mayor's hometown."
Jersey City Mayor Steve Fulop is shown in a file photo. Sweeney said he was angered Fulop was on a conference call with north Jersey lawmakers about the Assembly plan.
"If the mayors are going to determine where this goes, what's the sense of having the Legislature?" Sweeney said. "There's no victory here. I am trying to do the right thing for the state of New Jersey."
The Senate president has not officially declared he is running in 2017 and has largely avoided talking about the matter. But this issue ended his silence.
"The gubernatorial stuff has to stop," Sweeney said. "I've had enough of this. It's two years from now. We have stuff to do."
"Atlantic City is giving up a franchise," he added. "If you want to be a statewide figure, you support things that are beneficial in other parts of the state."
Prieto admitted that Fulop was on the conference call but denied the mayor is the reason the proposals have stalled.
"He has had no say," the speaker said.
Caputo agreed, noting that he had worked on this legislation for eight years and had collaborated with Prieto to make compromises in recent weeks.
"Fulop doesn't pull my strings," Caputo said.
Ryan Jacobs, a spokesman for Fulop, said the accusations against the mayor are "absurd."
"It's really easy for people to spread a story about 2017 -- and how this fell apart because of something that's out of their control -- rather than accept that they couldn't get it done," Jacobs said.
"Here are the facts: The mayor he doesn't have a vote in Trenton at all," he added. "But if he did, he's been on the record for two-plus years as a supporter of gaming in north Jersey. The pieces just don't add up."
Christie's awol, Democrats scatter. Trenton in meltdown | Moran
Ben Dworkin, a political science professor at Rider University, said part of the problem is that Gov. Chris Christie has largely been out of state this year as he campaigns for the 2016 Republican presidential nomination. That, Dworkin said, has left a void "being filled with initiatives by various elected officials and power brokers."
"And the gubernatorial maneuvering has been launched among potential candidates earlier than ever before," he added. "So what you have is policy-making where there is no one person who can force everybody into a room and come out with a deal free of polical ambition."
WHAT'S NEXT
Despite the drama, there is still hope to get the matter before voters next year. Lawmakers have until August to agree on a deal.
But because it missed Tuesday's deadline, the plan would now have to be approved by a three-fifths super-majority in the new legislative session beginning Jan. 12. Some say opposition from south Jersey lawmakers alone would likely sink it.
The biggest issue to resolve is who would be allowed to own the casinos.
Sweeney's plan would offer licenses only to companies that already own casinos in Atlantic City. That, he said, would keep a critical link to the struggling city in place.
Prieto's plan would allow at least one of the licenses to go to a new company. Otherwise, he said, it could lead to litigation from operators who want to come to the state.
A number of lawmakers -- including state Sen. Raymond Lesniank (D-Union) and state Sen. Jennifer Beck (R-Monmouth) -- released statements this past week calling for the Senate and Assembly to reconcile.
"This is an opportunity we have to capitalize on," Lesniak said.
A handful of labor unions backing Sweeney's plan made similar remarks.
Caputo, one of the sponsors of the Assembly plan, argued that it should be up to the state Casino Control Commission to decide who gets the licenses.
"There is still an opportunity to do something if people calm down and stop worrying about elections two years off," Caputo said. "This decision should be based upon what's right for state of New Jersey. It still can be solved."
