ATLANTIC CITY - Atlantic City would have to formulate a plan to fix its finances within 130 days or the state would take them over under a new proposal.

The measure proposed Wednesday by Democratic State Senate President Steve Sweeney holds out the promise of a state loan, provided the city can formulate a long-term plan to hold down spending and increase revenue.

The changes would come as amendments to one of two state takeover bills currently stuck in the state Legislature.

Sweeney and Republican Gov. Chris Christie have been pushing a bill giving New Jersey vast power over Atlantic City's finances and major decision-making power.

But Assembly Speaker Vincent Prieto has his own bill that would give Atlantic City up to two years to improve. He objects to letting the state break union contracts.