Atlantic City is days away from a government shutdown

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Atlantic City Is Loosing Big This Labor Day Weekend

Atlantic City's credit is continuing to spiral downward.

The city has been facing issues due to its large public pension plans and funding issues. According to reports, the city's mayor Don Guardian has said that the city will shut down any non-essential city services starting Friday if a plan is not reached.

See Atlantic City's transformation:

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Rise and Fall of Atlantic City
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Atlantic City is days away from a government shutdown
Bathers on the beach at Atlantic City, New Jersey. (Photo by Hulton Archive/Getty Images)
A view as tourist walk on the Atlantic City Pier in Atlantic City, New Jersey. Circa 1890. (Photo by Herbert/Archive Photos/Getty Images)
A beach scene where women and men wore styles of the day in Atlantic City, New Jersey. Circa 1890. (Photo by Herbert/Archive Photos/Getty Images)

New Jersey, 1878, Atlantic City, New Jersey Coast

(Photo: Getty Images)

Beach at Atlantic City, New Jersey, USA, late 19th century. Illustration from Portfolio of Photographs, of Famous Scenes, Cities and Paintings, published by the Werner Company, (Chicago, c1899). (Photo by The Print Collector/Print Collector/Getty Images)
A view as tourist walk on the Atlantic City Pier in Atlantic City, New Jersey. Circa 1890. (Photo by Herbert/Archive Photos/Getty Images)
Crowds on the beach and the boardwalk in Atlantic City, New Jersey. (Photo by Hulton Archive/Getty Images)
Beach, Atlantic City, New Jersey, 1895. (Photo by Geo. P. Hall & Son/The New York Historical Society/Getty Images)
High-angle view of city, Atlantic City, New Jersey, 1895. (Photo by Geo. P. Hall & Son/The New York Historical Society/Getty Images)
UNITED STATES - CIRCA 1900: Beach and Boardwalk goers in Victorian garb enjoy the sights of the shore on the New Jersey coast. (Photo by Buyenlarge/Getty Images)
UNITED STATES - CIRCA 1900: Down by the Sea, people of all types take a stroll along the boardwalk. (Photo by Buyenlarge/Getty Images)
UNITED STATES - CIRCA 1900: Wicker chair carts became synonymous with the Atlantic City boardwalk and were something everyone had to try. (Photo by Buyenlarge/Getty Images)
A promenade lithograph graces the cover of Atlantic City Boardwalk Promenade March, published in Pittsburgh, Pennsylvania in 1898. (Photo by Transcendental Graphics/Getty Images)
UNSPECIFIED - CIRCA 1930: Steel Pier, Atlantic City, N.J. Postcard. 1904, Steel Pier, Atlantic City, N.J. Postcard (Photo by LCDM Universal History Archive/Getty Images)

Easter Promenade On The Boardwalk

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UNSPECIFIED - CIRCA 1930: Postcard of The Breakers in Atlantic City. ca. 1916, The Breakers, Atlantic City, N. J. (Photo by LCDM Universal History Archive/Getty Images)

Easter promenade on the Atlantic City Boardwalk, 1920's

(Photo: Getty Images)

(Photo: Getty Images)
A view as tourist rest on a Double Decker pier in Atlantic City, New Jersey. Circa 1900. (Photo by Herbert/Archive Photos/Getty Images) 
A view of Hotel Traymore on the Boardwalk in Atlantic City, New Jersey. Circa 1920. (Photo by Herbert/Archive Photos/Getty Images) 
UNITED STATES - CIRCA 1900: Atlantic City, Roscoe Conkling Fatty Arbuckle (Photo by Keystone-France/Gamma-Keystone via Getty Images)
The Elephant Hotel, Atlantic City, New Jersey, with an functional edifice built in the shape of an elephant. (Photo by Topical Press Agency/Getty Images)
UNSPECIFIED - CIRCA 1930: The Elephant Hotel. ca. 1913, Margate City, New Jersey, USA, THE ELEPHANT HOTEL AT MARGATE CITY, ONE OF THE OLDEST LANDMARKS, ATLANTIC CITY, N.J. (Photo by LCDM Universal History Archive/Getty Images)
1921: Full-length portrait of the first Miss America contestants, wearing their sashes over swimsuits, standing in a line on the boardwalk in Atlantic City, New Jersey. Margaret Gorman (second from left), Miss Washington, D.C., was the winner. (Photo by Hulton Archive/Getty Images)
1921: American boxer Jack Dempsey (1895 - 1983, left) training in the ring with Wrestler 'Bull' Montana (1887 - 1950) at Dempsey's Stadium at Atlantic City, New Jersey. (Photo by Hirz/Getty Images)
An aerial view of the pier in Atlantic City, New Jersey.Circa 1940. (Photo by Herbert/Archive Photos/Getty Images)
UNITED STATES - CIRCA 1950s:  Sea-side board-walk scene.(Photo by George Marks/Retrofile/Getty Images)
UNITED STATES - CIRCA 1950s:  Atlantic City, NJ.  (Photo by George Marks/Retrofile/Getty Images)
UNITED STATES - CIRCA 1903: Postcard view of three young women sitting on mules and two young men riding in a cart pulled by a small horse on the beach in Atlantic City. (Photo by Lake County Museum/Getty Images)
A night new of Atlantic City Convention Hall in Atlantic City, New Jersey. Circa 1950. (Photo by Authenticated News/Archive Photos/Getty Images)
(Photo: Getty Images)
Young guests of the Tropicana Motel, sunbath and socialize on the hotel's sundeck, Atlantic City, New Jersey, 1960s. (Photo by Aladdin Color Inc/Getty Images)
UNITED STATES - JULY 01:  Photo of ROLLING STONES; Brian Jones performing live onstage at Steel Pier, Atlantic City, with security, playing Gibson Firebird (Non-Reverse body) guitar  (Photo by Bernie Walters - Treecastle Images/Redferns)
1964: Teamsters truck with a 'Justice for Jimmy Hoffa' sign and 'Investigate Bobby Kennedy' sign to protest Attorney General Robert Kennedy's investigation of Hoffa, Atlantic City, New Jersey. Photograph taken at the time of the Democratic National Convention. (Photo by Hulton Archive/Getty Images)
Rev. Ralph David Abernathy a colleague Martin Luther King, Jr. In 1955, he and King became known nationally because of their leadership of the successful Montgomery AL. bus boycott, Dr. Martin Luther King, Aaron E. Henry chairman of the Mississippi branch of the N.A.A.C.P for three decades and Bayard Rustin political adviser to Martin Luther King, Jr. and organizer of the 1963 March on Washington.  1964 Democratic National Convention in Atlantic City NJ. (Photo: Getty Images)
UNITED STATES - JULY 01:  Beach and boardwalk in Atlantic City.  (Photo by Bob Koller/NY Daily News Archive via Getty Images)
Duches of Cadiz and George Hamilton during Celebrity Ball - Atlantic City at Resorts International Hotel in Atlantic City, New Jersey, United States. (Photo by Ron Galella/WireImage)
Cher during Cher in Concert - July 10, 1979 at Resorts International Hotel in Atlantic City, New Jersey, United States. (Photo by Ron Galella/WireImage)
Early morning mist swirls around the Absecon lighthouse in the north end of Atlantic City, N.J., Wednesday, July 23, 2014. The coastal lighthouse overlooking Absecon Inlet is the tallest lighthouse in the state of New Jersey. First lit on January 15, 1857 and deactivated in 1933, the light still shines every night, but is no longer an active navigational aid. (AP Photo/Mel Evans)
Alex Trebeck, host of the Jeopardy game show, signs one of his slot machines Thursday, Aug. 12, 1999, at the Showboat Casino in Atlantic City, N.J. (AP Photo/ Chris Polk)
Donald Trump ascends the stairs with his fist raised from the genie's lamp after opening the Trump Taj Mahal Casino Resort in a spectacular show of fireworks and laser lights Thursday evening in Atlantic City, N.J., on April 5, 1990. Behind Trump is the 42-story hotel. (AP Photo/Chaarles Rex Arbogast)
Gov. Christine Whitman, left, and State Sen. Bill Gormley, center left, listen as Bob Broughner, CEO of the Borgata Casino Hotel describes the model of the $1 billion Borgata Casino Hotel Monday, June 12, 2000 in Atlantic City, N.J. At right is Don Snyder, president of Boyd Gaming, a partner in the project. Groundbreaking is scheduled for this fall, in Atlantic City's marina district. (AP Photo/Donna Connor)
Stan Kozlowski of Bally Gaming Inc. sits by a prototype for a new Popeye slot machine in Egg Harbor Township, N.J., Wednesday, Oct. 31, 2001. The nickel slot machines were approved by New Jersey casino regulators Wednesday. (AP Photo/Chris Polk)
A performer playing a mad scientist was on hand as Tropicana dignitaries await a ribbon cutting during the opening of the the Amazing Cash Contraption, at Tropicana casino and Hotel in Atlantic City, N.J., Wednesday, April 16, 2003. The Amazing Cash Contraption, a new slot machine jackpot system that incorporated Rube Goldberg style gadgetry into a random jackpot that is awarded every 15 minutes. (AP Photo/Mary Godleski)
ATLANTIC CITY, N.J. - APRIL 2:Strollers on the Atlantic City boardwalk.(Photo by Helayne Seidman/For The Washington Post via Getty Images)
Atmosphere during New Jersey State Government Re-Opens Atlantic City Gaming Casinos - July 8, 2006 at Atlantic City in Atlantic City, New Jersey, United States. (Photo by Tom Briglia/FilmMagic)
Mark Smith, Resort Atlantic City Black Jack dealer (Photo by Tom Briglia/FilmMagic)
Gustavo Mejia lies on the mat after Demetrio Soto knocked him out at 58 seconds into the first round of their super lightweight boxing bout at Boardwalk Hall in Atlantic City, N.J., on Saturday, June 7, 2008. (AP Photo/David Gard)
This Monday, April 28, 2014 photo shows the Miss America statue that was dedicated on the Atlantic City N.J. Boardwalk The statue is part of an effort to provide year-round attractions for tourists that don't necessarily involve gambling. (AP Photo/Wayne Parry)
ATLANTIC CITY, NJ - AUGUST 09:Fans fill the Atlantic City Boardwalk to watch Nik Wallenda performs at the Tropicana Casino on August 9, 2012 in Atlantic City, New Jersey. (Photo by Donald Kravitz/Getty Images)
ATLANTIC CITY, NJ - AUGUST 13: A view of The 2014 Atlantic City Airshow, Thunder Over the Boardwalk, on August 13, 2014 in Atlantic City, New Jersey. (Photo by Tom Briglia/FilmMagic)
ATLANTIC CITY, NEW JERSEY, UNITED STATES - 2011/04/30: Atlantic City skyline at night. (Photo by John Greim/LightRocket via Getty Images)
Atlantic City, New Jersey (Photo by Visions of America/UIG via Getty Images)
Atlantic City NJ Boardwalk on a Sunny Day prior to the devastating Hurricane Sandy (Photo: Getty Images)
ATLANTIC CITY, NJ - APRIL 02: General view of the Revel Entertainment Casino on April 2, 2012 in Atlantic City, New Jersey. (Photo by Tom Briglia/FilmMagic)
This July 24, 2014 photo shows several lights burned out in the illuminated facade of the Trump Plaza Hotel Casino in Atlantic City, N.J. On Tuesday Aug. 5, 2014, Donald Trump sued Trump Entertainment Resorts, seeking to force the company to remove his name from its two Atlantic City casinos, Trump Plaza and the Trump Taj Mahal, alleging the company had allowed the casinos to fall into disrepair and tarnish the real estate mogul's personal brand. (AP Photo/Wayne Parry)
This July 24, 2014 photo shows the former Claridge Casino Hotel in Atlantic City that is currently operating as a non-casino hotel. Its new use could be a model for three current casinos due to shut down by mid-September. (AP Photo/Wayne Parry)
Workers put closed signs on the entrance of the Showboat Casino Hotel Sunday, Aug. 31, 2014, in Atlantic City, N.J. The show is ending for the Showboat Casino Hotel in Atlantic City. The Mardi Gras-themed casino is shutting down at 4 p.m. Sunday after 27 years on the Boardwalk. Owner Caesars Entertainment is closing the still-profitable Showboat to reduce the number of casinos in Atlantic City, which has been struggling with plunging revenue and increased competition. (AP Photo/Mel Evans)
ATLANTIC CITY, NJ - APRIL 29: The construction site for the Revel Entertainment's Atlantic City resort on April 29, 2009 in Atlantic City, New Jersey. Many Atlantic City residents are dependent on the struggling gaming industry for employment. Since the beginning of the year, the 11 casinos in Atlantic City reportedly have eliminated 1,270 jobs; totaling a loss of 3,092 casino workers since March 2008. (Photo by Spencer Platt/Getty Images)
ATLANTIC CITY, NJ - JULY 30: The recently closed Atlantic Club Hotel and Casino is viewed in Atlantic City on July 30, 2014 in Atlantic City, New Jersey. Since January of 2014, four of Atlantic City's 11 casinos have announced plans to close, gone bankrupt or closed leaving thousands of residents without jobs. As neighboring cities open gambling businesses, fewer people are traveling to Atlantic City for visits to casinoes. Since 2006 Casino revenue in Atlantic City has fallen from $5.6 billion to $2.86 billion. Experts believe this is the biggest crisis Atlantic City has faced in its 36 year relationship with gambling. (Photo by Spencer Platt/Getty Images)
The Borgata Hotel Casino and Spa is shown in Atlantic City, New Jersey, 24 May 2007. The hotel, which opened in 2003 and features 2000 rooms, touts itself as the first Las Vegas style resort in Atlantic City. Gambling has been legal in Atlantic City, one of the few such cities in the United States, since the first casino opened in 1978. (Photo credit should read SAUL LOEB/AFP/Getty Images)
A damaged letter "R" and a missing letter "E" are seen on The Boardwalk sign for the closing Revel Casino Hotel, Monday, Sept. 1, 2014, in Atlantic City, N.J. The most spectacular and costly failure in Atlantic City's 36-year history of casino gambling began to play out Monday when the $2.4 billion Revel Casino Hotel emptied its hotel. Its casino will close early Tuesday morning. Revel is shutting down a little over two years after opening with high hopes of revitalizing Atlantic City's struggling gambling market. (AP Photo/Mel Evans)
A sign is seen Monday, Sept. 1, 2014, next to lobby escalators saying Revel Casino Hotel in Atlantic City, N.J., will cease operations Sept. 6, 2014 at 6 a.m. The most spectacular and costly failure in Atlantic City's 36-year history of casino gambling began to play out Monday when the $2.4 billion Revel Casino Hotel emptied its hotel. Its casino will close early Tuesday morning. Revel is shutting down a little over two years after opening with high hopes of revitalizing Atlantic City's struggling gambling market. (AP Photo/Mel Evans)
People walk on The Boardwalk past the closing Revel Casino Hotel, Monday, Sept. 1, 2014, in Atlantic City, N.J. The most spectacular and costly failure in Atlantic City's 36-year history of casino gambling began to play out Monday when the $2.4 billion Revel Casino Hotel emptied its hotel. Its casino will close early Tuesday morning. Revel is shutting down a little over two years after opening with high hopes of revitalizing Atlantic City's struggling gambling market. (AP Photo/Mel Evans)
A lone man is playing slots at Revel Casino Hotel Monday, Sept. 1, 2014, in Atlantic City, N.J. The most spectacular and costly failure in Atlantic City's 36-year history of casino gambling began to play out Monday when the $2.4 billion Revel Casino Hotel emptied its hotel. Its casino will close early Tuesday morning. Revel is shutting down a little over two years after opening with high hopes of revitalizing Atlantic City's struggling gambling market. (AP Photo/Mel Evans)
The boardwalk in Atlantic City, New Jersey, USA (Photo: Alamy)
ATLANTIC CITY, NEW JERSEY - MARCH 30: A police cruiser patrols the beach as seen from the Trump Taj Mahal casino hotel on March 30, 2016 in Atlantic City, New Jersey. The Atlantic City municipality is due to run out of funds on April 8 and is facing insolvency and the possibility of bankruptcy. Many city workers, including members of the fire and police departments, have vowed to continue working without pay until funds are restored. The Jersey Shore gambling resort town has seen four casinos close in recent years, cutting its casino tax revenue in half. The financial crisis has pitted Atlantic City Mayor Don Guardian against New Jersery Governor Chris Christie, who has refused to bail out Atlantic City with state funds. (Photo by John Moore/Getty Images)
ATLANTIC CITY, NJ - MARCH 27: Atmosphere of Atlantic City before the 33rd Annual Restaurant Gala; 'Mission Possible' benefitting The Atlantic Cape Community College in Atlantic City, New Jersey. (Photo by Steve Sands/Getty Images)
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The Governor and Mayor Guardian have been presenting differing plans on how to address the debt issue. Guardian's plan would delay payment to the unionized city workers, switching to a once-a-month payment plan.

In Governor Christie's opinion this is only a temporary fix, and more must be done. He has suggested that the state take over some of the city's operations, including handling debt and union contract.

In addition, Christie's office filed a lawsuit today to compel the city to continue making payments to the city's school system according to the Press of Atlantic City.

On top of all of this, credit rating agency Moody's once again cut the debt rating for the New Jersey city to Caa1 from Caa3. This is the third-lowest credit rating from Moody's and well into junk territory.

The downgrade impacts $16 million of the $345 million of Atlantic City's debt.

"The downgrade to Caa3 reflects the greater likelihood of default within the next year and higher probability of significant bondholder impairment given an ongoing political stalemate over an Atlantic City fiscal rescue package," said a release from Moody's.

"The downgrade also incorporates renewed signals from the state that bondholders will face losses as part of a possible debt restructuring. The Caa3 rating indicates an expected loss to bondholders of up to 35% of principal, in light of the city's very large structural deficit with limited sources of relief without state assistance."

New Jersey Governor Chris Christie said in a press conference Monday that the debt is now just as bad as Puerto Rico, which is facing possible bankruptcy. The island also has a rating of Caa1 on its debt from Moody's.

Business Insider has reached out to Chris Christie's office for further comment and we will update if we hear back.

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Atlantic City is days away from a government shutdown

17. St. George, Utah, metro area

2014 Population: 151,876
2015 Population: 155,602
Percent Change: 2.5%

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16. Raleigh, North Carolina, metro area

2014 Population: 1,243,035
2015 Population: 1,273,568
Percent Change: 2.5%

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15. College Station-Bryan, Texas, metro area

2014 Population: 242,919
2015 Population: 249,156
Percent Change: 2.6%

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14. Naples-Immokalee-Marco Island, Florida, metro area

2014 Population: 348,355
2015 Population: 357,305
Percent Change: 2.6%

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13. Orlando-Kissimmee-Sanford, Florida, metro area

2014 Population: 2,326,729
2015 Population: 2,387,138
Percent Change: 2.6%

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12. Hilton Head Island-Bluffton-Beaufort, South Carolina, metro area

2014 Population: 202,137
2015 Population: 207,413
Percent Change: 2.6%

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11. North Port-Sarasota-Bradenton, Florida, metro area

2014 Population: 748,795
2015 Population: 768,918
Percent Change: 2.7%

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10. Fort Collins, Colorado, metro area

2014 Population: 324,657
2015 Population: 333,577
Percent Change: 2.7%

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9. Punta Gorda, Florida, metro area

2014 Population: 168,437
2015 Population: 173,115
Percent Change: 2.8%

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8. Bend-Redmond, Oregon, metro area

2014 Population: 170,398
2015 Population: 175,268
Percent Change: 2.9%

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7. Austin-Round Rock, Texas, metro area

2014 Population: 1,943,465
2015 Population: 2,000,860
Percent Change: 3.0%

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6. Greeley, Colorado, metro area

2014 Population: 276,379
2015 Population: 285,174
Percent Change: 3.2%

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5. Odessa, Texas, metro area

2014 Population: 154,399
2015 Population: 159,436
Percent Change: 3.3%

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4. Midland, Texas, metro area

2014 Population: 161,440
2015 Population: 166,718
Percent Change: 3.3%

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3. Cape Coral-Fort Myers, Florida, metro area

2014 Population: 679,233
2015 Population: 701,982
Percent Change: 3.3%

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2. Myrtle Beach-Conway-North Myrtle Beach, South Carolina-North Carolina, metro area

2014 Population: 417,177
2015 Population: 431,964
Percent Change: 3.5%

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1. The Villages, Florida, metro area

2014 Population: 114,000
2015 Population: 118,891
Percent Change: 4.3%

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