Atlantic City Could Default in Weeks, Ratings Agency Says

The agency, Moody's Investors Service, said in an analysis that the city would run out of money in the next few weeks, which could lead to bankruptcy, if two measures are not approved by lawmakers.

The first bill would strip Atlantic City of most of its decision-making power and give New Jersey the right to break contracts and sell off city assets to help get the city's finances under control. The second would allow casinos to make payments in lieu of taxes.

The bills are backed by the president of the State Senate, Stephen M. Sweeney, a Democrat, and Gov. Chris Christie, a Republican. The speaker of the Assembly, Vincent Prieto, a Democrat, said the bills needed to be changed to ensure that the state could not unilaterally cancel public employee contracts.