Trump suit over AC tunnel financing rejected

Tuesday, Aug. 3, 1999 | 11:42 a.m.

The Star-Ledger newspaper reported that by a 5-2 vote, the court rejected Trump's argument that the tunnel is an illegal use of casino tax revenues, which are earmarked for the benefit of senior citizens and the disabled under the state constitution.

The tunnel is being built with revenue from a variety of state agencies, including $55 million from the Casino Reinvestment and Development Authority.

Trump called the use of CRDA money charity for the rich.

The decision found that the state constitution requires that only the initial 8 percent tax imposed on casino winnings go to seniors and the disabled. Additional casino taxes, levied by the legislature in recent years, may be used for other purposes, the court rules.

The Star-Ledger reported two dissenting justices wrote: "By diverting revenues from senior citizens and the disabled residents, the state has broken its promise to them and to the general public."

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