For Immediate Release:
July 29, 2010

Contact:

Councilman Jim Gorman

(609) 204-0881

Galloway Councilman Jim Gorman Calls for Equitable New CRDA Formula

(Galloway) -- Galloway Township Councilman and District 4 Freeholder Candidate Jim Gorman today called for a new Casino Reinvestment Development Authority (CRDA) formula that provides for more funding for Atlantic County communities outside Atlantic City, rather than zeroing it out, as proposed by Governor Chris Christie and Assemblyman John Amodeo.

“Eliminating funds to towns like Absecon, Galloway, Egg Harbor Township, and Pleasantville is exactly the wrong direction for Atlantic County,” said Gorman, a Galloway resident and councilman.  “For years, we have been trying to correct the injustice in that Atlantic County towns must compete with all other communities in South Jersey for CRDA funds despite being on the front lines of feeling all of the impact of casino growth, exploding schools, and congested roads.”

The proposal to eliminate CRDA funding to towns other than Atlantic City was first announced last week by Governor Christie during the release of a report from the Task Force on Gaming, Sports and Entertainment.  Yesterday, Assemblyman John Amodeo called for the freezing of all CRDA funds, including those that would go to towns in Atlantic County, other than Atlantic City.

“While we need increased State investment in Atlantic City to revive our declining casino industry, we cannot lose sight of the regional impact caused by casino growth,” said Gorman.  “It is unfair for taxpayers in places like Absecon, Galloway, and throughout Atlantic County to assume the infrastructure costs and extra burdens in our schools, while receiving no extra revenues to offset them.  Any change in the CRDA funding should take this into account.”

A casino’s CRDA fund obligations are divided into three pots, which are funds for Atlantic City, funds for South Jersey and funds for North Jersey.  The money is allocated in a sliding scale formula that initially favors Atlantic City and spreads out to the rest of New Jersey throughout a casino’s years of operation.  In years one to three, Atlantic City receives 100 percent of a casino’s funding obligation.  In years 4 to 50, South Jersey can receive as little as eight percent to 50 percent and North Jersey can receive between two and 50 percent.