Solomon smacks Fulop for $254M Jersey City deficit, $667M in one-shot revenues

Jersey City Mayor James Solomon smacked his predecessor Steven Fulop over a $254 million budget deficit – about 28 percent of the budget – which in part is attributed to $667 million in one-shot revenues since 2019, he announced at a press conference today.

By John Heinis and Dan Ulloa/Hudson County View

“For years, Jersey City residents were told our city was thriving financially. That was a lie. The previous administration sold off our city’s future—depleting reserves, selling public land, and using every trick in the book—all to avoid making honest decisions and to fuel one man’s political ambitions,” Solomon said in a statement.

“The bill has now come due. My administration will not repeat those mistakes. We will tell Jersey City the truth, even when it’s hard, and we will build a responsible path forward that protects working families.”

The deficit comes despite favorable economic conditions, including a growing tax base, surging development, and the largest infusion of federal aid in American history during the COVID-19 pandemic, Solomon added, pointing to a 24-page “financial emergency” report.

He also said that three major credit rating agencies—Moody’s, S&P, and Fitch—have downgraded Jersey City’s credit rating in recent years, with Moody’s characterizing the city as a “financially struggling city with deteriorating liquidity profile” in December 2025.

Jersey City’s credit ratings are A2 (previously A1) with Moody’s, A (previously A+) with S&P, and A+ with Fitch (previously AA+).

Solomon further stated nearly 70 percent of the city’s roughly $100 million American Rescue Plan dollars went towards a property tax cut in 2021 when Fulop was up for re-election, about $20 million spent on consultants for the Pompidou museum, and the city has over $52 million in unpaid health insurance bills from 2024 and 2025.

At the presser, he also mentioned almost 1,000 city properties were sold during Fulop’s tenure for at least $100 million, with $33 million used in 2025 alone to plug budget holes.

The former downtown councilman also asserted that the city overpaid state and federal taxes by $3.1 million and failed to request a refund before the deadline, meaning that money is now lost.

The new administration noted they brought in independent municipal budget experts from the City University of New York’s Institute for State and Local Governance at no cost to the city, as well as hiring Bill Viqueira as the city’s finance director, as HCV first reported, to address the situation.

Furthermore, they anticipate $30 million in savings by switching healthcare providers last month.

“Having worked through fiscal crises in multiple major cities, Jersey City’s $254 million deficit for 2026 is both severe and urgent. What stands out in Mayor Solomon’s approach is the commitment to transparency and truth-telling from day one,” noted CUNY Institute of State and Local Governance budget expert Marc Shaw.

“Too often, municipal leaders try to paper over these problems with the same gimmicks that created them. Mayor Soloman deserves credit for laying out the full scope of the crisis, and committing to sustainable solutions that provide for structural balance within the context of a 5-year plan.”

Solomon was flanked by the majority of the Hudson County delegation, including state Senators Angela McKnight (D-31), Raj Mukherji (D-32), and Brian Stack (D-33), which he said was to show his commitment to work with Trenton legislators to remedy the issue.

At the press conference, Solomon called the matter “a fiscal crisis,” noting he voted against all eight of Fulop’s budgets as a two-term councilman.

“This has happened during a time of economic prosperity while the city is growing and our economic is moving. We face a historic deficit and hard decisions for the city’s future,” he explained.

When asked by HCV if this meant taxes would have to be raised this year, he didn’t rule it out, noting that there are many unforeseen fiscal circumstances that must be addressed.

“We now have a negative balance in our rainy day fund during a period of economic growth,” Solomon exclaimed.

He also criticized financial deals with the Jersey City Redevelopment Agency (JCRA) and Municipal Utility Authority (MUA), which lost the city money and created higher bills for residents, according to the mayor.

Additionally, Solomon said the city has already spent $20 million on consults for the Centre Pompidou museum, which he said is officially cancelled under his watch.

Fulop told HCV that if he ran for a fourth term, he would not have implemented a tax increase and that he felt today’s media event was a dog and pony show.

“We obviously disagree. Had I chosen to run for re-election, we would have introduced another budget with no tax increase for Jersey City residents. It’s also worth noting that James served on the City Council for eight years with full budget responsibilities,” he said.

“During that time, he never raised these concerns and voted for virtually every contract that came before the council. This is James playing politics.”