State renews effort to freeze Atlantic City spending

New Jersey officials are due back in court Tuesday afternoon as they try to get a judge to freeze Atlantic City’s spending until the city hands over the millions of dollars it owes its school system.

The state Education Department is suing the nearly broke gambling resort. It wants the city to turn over tax money it collected on behalf of the schools.

The city paid half of an $8.4 million payment that was due last Friday. But the state wants the remaining $4.2 million paid.

Officials note the city still owes the schools $29.7 million between now and the end of the school year.

An adverse ruling could force the city to shut down non-essential government services and pay police, fire and other workers with IOUs.