The governor told a town hall in Morris County on Wednesday that the resort city is "one of the worst-run, the most bankrupt, ridiculous municipal governments in America."
He also said the mayor "has no idea what he's doing."
Christie was angered by a report in The Press of Atlantic City that 15 public employees were retiring with $2.2 million in payouts for unused sick and vacation time. He is also upset about a $16,000 raise approved for Mayor Lorenzo Langford.
In his budget address Tuesday the governor again called on the Legislature to prohibit future public hires from being able to cash out unused sick time. Democrats want to cap payouts instead at $7,500.