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AP: Mayor nixes tax break to save Taj Mahal casino

By WTOP Staff

WAYNE PARRY
Associated Press

ATLANTIC CITY, N.J. (AP) — Atlantic City’s mayor said Monday he cannot agree to massive tax reductions sought by the owners of the Trump Taj Mahal Casino Resort, throwing into serious doubt an already long-shot plan by billionaire Carl Icahn to buy and save the casino and its 2,800 jobs.

Mayor Don Guardian told The Associated Press he cannot agree to the massive tax rollbacks, which are a key component of what Trump Entertainment resorts and Icahn are demanding in return for pumping $100 million into it and keeping it open.

“Given the difficult economic situation in Atlantic City, we are not in a position to accept these requests,” Guardian told the AP. “We cannot afford those demands.”

The proposal calls for the city reducing the tax assessments of Trump Plaza, which closed on Sept. 16, from $248 million to $40 million and for the Taj Mahal from $1 billion to $300 million.

Atlantic City is dealing with a massive budget deficit brought on largely by the crumbling of its casino market. Plagued by years of successful appeals by the casinos challenging their tax assessments as too high in light of the plunging gambling market here, the city plans to cut $40 million from its budget over the next four years, lay off workers, and raise taxes on businesses and homes to make up for the lost revenue.

The finances have been further impacted by the closing of four of the city’s 12 casinos so far this year. The Taj Mahal would become the fifth if Trump Entertainment makes good on its threat to shut it down on or before Nov. 13.

Trump Entertainment Resorts, the Taj Mahal’s parent company, declined to comment on the mayor’s decision.

Icahn is considering spending $100 million to save the casino.

An aide said Icahn was not available for comment Monday.

But the offer came with considerable strings attached: Icahn is willing to consider the bailout “if and only if” he gets big givebacks from the casino workers’ union, steep tax breaks from Atlantic City and county, and $25 million in funds from a New Jersey agency.

In a Friday filing to a bankruptcy court, Trump Entertainment Resorts presented a letter from Icahn’s attorney saying the billionaire would consider bailing out the casino if the debt he owns in it were converted to equity that would give him ownership.

“Notwithstanding the fact that putting more money into the Taj is a questionable business decision, we share the company’s desire to see the Taj Mahal remain open and preserve the jobs of the company’s employees,” Icahn attorney Allan Brilliant wrote in a Sept. 23 letter to Trump Entertainment Resorts in response to the company’s offer to hand ownership to Icahn. Failing to get the concessions “would make it impossible to operate a viable company at this time.”

The court filing paints a dismal portrait of the Taj Mahal’s finances, and holds out no hope of its survival beyond November without Icahn’s money and the related concessions. Trump Entertainment has threatened to close the casino and lay off its 2,041 full-time and 825 part-time employees.

Union president Bob McDevitt said the proposal would cut total compensation to workers — many of whom earn $12 an hour — by 35 percent. He said Icahn is “seeking to take advantage of the Atlantic City crisis to do away with the health care thousands of south Jersey casino workers and their families have fought for and relied upon for over 30 years.”

It also calls for the Casino Reinvestment Development Authority to provide $25 million in tax credits or other investments. John Palmieri, executive director of the agency, said he has not received the request yet, but added the agency is not allowed by law to give financial assistance to the casinos that is gambling-related.

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Wayne Parry can be reached at http://twitter.com/WayneParryAC

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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