Atlantic City sues N.J. for $33.5 million it says it was promised

Atlantic City is suing New Jersey for $33.5 million in aid it says it was promised but never received.

The nearly broke city made its demand while defending itself from a lawsuit by the state Education Department, which unsuccessfully sought to seize control of the city’s cash until its debt to the schools system was paid off.

The city also seeks the appointment of a special master who in effect would oversee its own overseer.

The $33.5 million would have come from an Atlantic City rescue package that has been stalled in the state Legislature.

The skirmishing came hours after the city paid its schools another $4.2 million to bring itself up to date with scheduled payments on Tuesday. But it still owes the schools $25.5 million by July 15.

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