The New Jersey Senate Budget Committee held a hearing at the New Jersey Institute of Technology (NJIT) in Newark this morning where Hudson County leaders backed Jersey City’s request for $150 million in transitional aid.
By Daniel Ulloa/Hudson County View
Jersey City Mayor James Solomon noted he’s working with Gov. Mikie Sherrill (D) on what he called a budget crisis to try a $254 million budget shortfall.
“Helping Jersey City is not charity but a smart investment that helps the entire state … In 2024, Jersey City generated an estimated 1.3 billion in income sales and corporate tax, roughly 3.1 percent of the state’s major tax collections,” Solomon explained.
“If Jersey City’s growth stalls due to either devastating property tax increases and/or service cuts, the state loses tax revenue, the state loses … the economic momentum it depends upon. Nearly one in five of our city’s residents live below the poverty line, almost double the statewide rate. 63 percent of our public-school students are classified as economically disadvantaged.”
He further stated that Jersey City contributes about $400 million to the state each year, a figure that has tripled to 2010, while and the state school funding formula has cut board of education funding by about 63 percent.
Solomon criticized former Mayor Steve Fulop for “placing self-interest above public interest” and fiscal mismanagement, noting he voted against every budget while he served two terms as the Ward E councilman.
Further, the new mayor said last week, the city asked all departments to cut 10 percent of their budget and look for ways to raise revenue, held community meetings in each ward to discuss the budget, and welcomes a fiscal monitor that comes with transitional aid.
“We have assembled a broad unified coalition of elected leaders from across Hudson County, business leaders, union leaders, and community leaders, all engaging with the Governor and the Legislature because they understand the city’s fiscal health is inseparable from New Jersey’s fiscal health,” Solomon declared.
” … We’re asking the state to provide at least 150 million dollars in transitional aid to Jersey City’s 2026 budget. We view this as a bridge … Even with that aid, we face tough choices: Spending cuts and property tax increases. But we’ve prepared to do what we need to with the help and guidance of the state.”
Joining Solomon at the hearing were Hudson County Executive Craig Guy, as well as state Senators Angela McKnight (D-31) and Raj Mukherji (D-32).
“Mayor Solomon inherited this crisis. He’s not responsible for the fiscal mismanagement brought by the previous administration. Since taking office, Mayor Solomon has been transparent, decisive, and accountable. He deserves a partner in the State of NJ,” Guy, also the chair of the county Democrats, asserted.
“You said something important. Hudson County is united on this. A fractured county or a fractured group of constituencies results in no money coming back. I’ve been doing this a long time,” Committee Chair Paul Sarlo (D-36) noted.
McKnight echoed that sentiment, stating that that working families need help and are already “at the breaking point,” therefore it would be unfair to expect them to pay for the deficit solely via tax increases.
“I am asking for Jersey City to not be left behind to navigate this challenge alone,” she added.
Next, Mukherji explained that Jersey City is a School Development Authority (SDA) district greatly in need of aid, reiterating that they need the state as a partner right now.
“There were a lot of actions by the administration that were not transparent to the council. You sat there, you said you voted against the budget?” Sarlo asked Solomon.
“Yeah, 100 percent,” Solomon said, citing one-shot land deals and surplus money to cover municipal budget gaps. He also claimed that that his a administration found $50 million in health bills “systemically hidden.”
Sarlo added that the committee appreciated him committing to utilize a fiscal monitor if their transitional aid application is granted.
State Senator Declan O’Scanlon (R-13) also had a positive tone, but also expressed a bit of trepidation.
“It’s appreciated. But the state has limited resources … A lot of towns are getting screwed,” though he continued that he understands the unique circumstance here.
To that point, Solomon said he would be happy to meet with each state senator individually and go over their budget if that would be helpful.
“ … Mayor, I appreciate your transparency and advocacy. It’s been unbelievable,” Sarlo concluded.
“Thank you, Chairman. Thank you all,” Solomon said to applause before the session ended.
Hudson County Commissioner Bill O’Dea (D-2), Jersey City Public Safety Director Anthony Ambrose, and former Assemblyman Nick Chiaravalloti also testified in favor of their state aid application, with LIUNA labor union leaders in the crowd supporting their advocacy.
Chiaravalloti is now the vice president for external affairs, strategic planning and senior Counsel to the president at Hudson County Community College.
In a lengthy interview the the New York Editorial Board published over the weekend, Fulop called the notion that Jersey City has a quarter billion dollar deficit “fugazi.”
“He kept my business administrator. He kept my HR people. He kept my director of economic development. He kept my director of the redevelopment agency, et cetera, et cetera. My director of recreation. All my leadership staff, he kept. Which should tell you something,” he said.
“He applied to the state, not for $250 million like his press conference was, but for a fraction of that. So I would push back on that entire narrative, because I think it’s just pure politics and fugazi.”
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