DCA Fiscal Oversight of Atlantic City

Aerial View of Atlantic City

What is the Municipal Stabilization and Recovery Act (MSRA)?

In May 2016, the New Jersey State Legislature passed the Municipal Stabilization and Recovery Act, which sets forth a procedure for the State of New Jersey – specifically the New Jersey Department of Community Affairs (DCA) – to step in and assist municipalities facing short-term and long-term financial instability.

Does the Municipal Stabilization and Recovery Act apply to Atlantic City?

Yes. Following a process outlined in MSRA, DCA undertook a comprehensive review of the City of Atlantic City in 2016 and determined the City was in need of stabilization. This determination triggered the State in November 2016 to exercise its authority to stabilize the City’s finances.

In June 2021, Governor Phil Murphy signed legislation that extended State oversight of the City of Atlantic City for an additional five years beyond November 2021.

How is DCA administering MSRA?

DCA’s Division of Local Government Services has in-house skilled technical advisors who are available to assist the City of Atlantic City whenever necessary. The advisors have spent decades working in their respective areas of expertise such as police, fire, revenue and finance, public works, and municipal administration. They use their knowledge, industry standards, and best practices to ensure City departments are efficiently operating and to build the capacity of City staff.

How is DCA preparing the City of Atlantic City to administer its finances once State oversight ends?

DCA is working to expand the capacity of the city’s staff. Supervisor-level city employees have received Certified Public Manager (CPM) training to strengthen work performance and better serve Atlantic City residents. The nationally-accredited CPM Program is administered by the NJ Civil Service Commission and delivered by Rutgers University-Newark’s School of Public Affairs and Administration.

City employees complete mandatory training in local government ethics law, the local government ethics administrative code, the criminal code related to government ethics, financial disclosure statements, and real-life examples.

DCA and the City routinely conduct additional training for city employees in areas such as problem solving and decision making, strategic thinking, and organizational integrity to continue building the capacity of city government.