The gravity of the situation at Atlantic City warrants a lot of attention owing to the number of issues that have recently being plagued the city. Inadvertently, parochial politics have infiltrated the city`s system resulting in the 2015 budget crisis. The financial woes being experienced are such that the city is on the verge of defaulting on loans as it ran out of finances; a situation that is bound to result in bankruptcy. Failure to approve the governor`s $31 billion budget resulted in the closure of many businesses including Casinos. This looming crisis led the leaders to become desperate as they cited political interference as the source of all the problems being experienced. Like any other crisis, there is bound to be a solution for the current state of affairs. This analysis will seek to offer a plausible argument on: The potential options available to close the budget gap, some of the interventions that can be made to solve the budget, as well as the pros and cons of such recommendations.
Options
When analyzing the problem being faced by the city of Atlanta, one thing is evident; more money is being spent by the local government and other institutions than the residents of the city can actually afford. Besides, the $400 million borrowed by the city`s emergency manager to offset debt has only added to the woes. The best option for the city is to cut down on spending. Besides this, any employees who have no relevance within the system ought to vacate office with salaries being reduced, all with an aim of offsetting the large debt being held by the city.
Delegate your assignment to our experts and they will do the rest.
Recommendations
In order to forestall the catastrophe likely to occur in Atlantic City, it would be advisable for the emergency manager to minimize on spending on all areas of operations. This includes the allowances and remunerations offered to officials as well as spending on public institutions of learning. Besides this, tough laws and regulations ought to be initiated by the legislators to prevent a situation whereby only a section of individuals in the society are benefiting. There is no need for the leaders to overburden the tax payer, whereas they are spending recklessly. In addition to this, zoning and permit laws ought to be reexamined in order to reform casinos. This is bound to revive the gambling sector which was initially the top contributor to the city`s revenue.
Pros
Creation of favorable laws as formerly mentioned, is likely to have the effect of attracting more investors not only in the gambling sector but also in other segments of the economy. Besides this, by minimizing the spending habits, the city is likely to have fewer debts and eventually it will be on the brink of counteracting all the debts previously acquired and focus on development.
Cons
Resolution of debts by adopting reduction incentives is likely to lead to a situation whereby some of the city workers may end up losing their jobs with others will experience a reduction in their earnings. Further still, reintroduction of Casino businesses into the city might result in a situation whereby major cartels can take advantage of the situation and establish a monopoly.
Conclusion
It is apparent from the above illustrations that the 2015 budget crisis facing Atlantic City was indeed serious. The financial woes experienced by the city can easily be observed. In addition, political influence has been indicated as being one of the contributing factors to the crisis experienced. Instead, the situation has resulted from the excessive spending of public funds. This can, nevertheless, be counteracted by adopting more favorable regulations in order to lure back investors as well as minimizing expenditure. The latter is expected to lead to a situation whereby funds paid out to city are bound to be minimized with some city workers losing their jobs. The former on the other hand, may result to a situation whereby the investors may establish a monopoly for themselves. One thing that can, nonetheless, be certain is that the city is likely to be saved from the budget turmoil once these incentives are adopted.
