Jabbour says initial Hoboken budget has $17M deficit and over 20% tax increase

Hoboken Mayor Emily Jabbour says that the Mile Square City’s initial budget comes with a roughly $17 million deficit and an over 20 percent tax increase.

By John Heinis/Hudson County View

“Right now, before we make any cuts or find any additional revenue sources, we’re looking at a $17 million dollar budget gap. Closing that gap could require a tax increase of more than 20 percent,” she said in a video posted on the city’s social media pages last night.

“Why? There are a few drivers of this increase, but the big ones are state requirements and prior agreements. About three million dollars in health insurance costs, nearly two million dollars in debt payments for really critical infrastructure projects, and around three million dollars in contractual salaries and public safety staffing.”

Jabbour also mentioned that in 2018 the budget surplus was approximately $24.1 million and it is down to about $10.4 million today.

Ravi Bhalla, now a state assemblyman for the 32nd Legislative District, served two terms as Hoboken’s mayor between 2018 and 2025. During that time, Jabbour was a councilwoman at-large and she voted for each budget presented to the governing body.

Last month, the new mayor pointed out that the city was assigned a negative debt rating outlook by S&P Global Ratings, prompting her to change the budgeting process by incorporating a public survey and open workshops prior to introduction, as HCV first reported.

“As we move into the budget process, I will continue doing what I have always done – pushing hard for cost discipline, efficiency improvements, and a budget that respects how hard our residents work for their money,” 2nd Ward Councilwoman Tiffanie Fisher wrote in a newsletter today.

“Ultimately, the budget is introduced by the Mayor and must then be approved by at least five members of the City Council. The mayor is soliciting feedback from the City Council in advance of her introduction, which is new, and I am appreciative of this effort.”

She also noted that the Hoboken tax bill is determined by the city, county, and board of education, therefore a 20 municipal tax increase would be about a six or seven percent hike without incorporating the other two aforementioned budgets.

Fisher further stated that she would weigh in on the budget in greater detail once the public survey is released.

“For five years I’ve been saying that we need to do more responsible budgeting, and in that entire time, we never said or utilized the word cut once. In any good budgeting, you have to first talk about cutting expenses before you talk about raising taxes,” 1st Ward Councilman Paul Presinzano said over the phone.

“We ran an election on affordability and this is where we are. Renters and homeowners alike will feel the burn on this. And this is just the first year of this, this trend will continue in the coming years and I’ve been repeatedly raising the flag on this to no avail.”