Jersey City Mayor James Solomon has unveiled a $886,546,594.16 municipal budget with a 15.5 percent tax increase set for first reading at Wednesday’s City Council meeting.
By John Heinis/Hudson County View
“At more than a dozen town halls, I heard from Jersey City residents that the city must solve this historic budget crisis through smart cuts that protect core city services. This is an honest budget, and an honest budget that represents the difficult work of limiting the impact on taxpayers as much as possible, while maintaining a functioning city government,” Solomon said in a statement.
“This task was made extraordinarily difficult by the presence of $109M in unpaid bills, deferred costs, and hidden spending that we are now honestly accounting for in this year’s budget. We didn’t create this hole. But it is our job to climb out of it — honestly, and without the gimmicks that got us here.”
The administration explained that approximately $58 million in spending cuts, $120 million in state support, and roughly $75 million in additional annual revenue from the 15.5 percent municipal rate increase together with growth in the city’s ratable base allows them to close an over quarter billion dollar deficit.
Further, the mayor’s office claims that the 2025 budget set aside about $147 million for employee and retiree health insurance, when the true cost was roughly $195 million — an understatement of nearly $48 million.
The continued that everyday expenses were paid out of the capital budget, putting those costs on the city’s proverbial credit card. Money meant for long-term investments like buildings and equipment were used to pay for operating costs to keep them off books.
Solomon added that this spending plan has about $9.7 million in cuts across 10 of the city’s 13 departments, with $25 million in estimated savings after switching health insurance providers.
Should the budget be approved as is, the average Jersey City homeowner would see a $51 per month tax increase from the city, a $63 per month tax hike from the board of education, and a $26 per month tax increase from Hudson County.
The mayor proposed a 20 percent rate hike for the third quarter bills last month, but he pulled that in favor of a 15 percent proposal that was voted down unanimously (0-9) at last Wednesday’s City Council meeting.
Just yesterday, five members of the governing body brought the fight to Solomon, alleging they were wrongfully being blamed for 31 provisional employees being laid off, adding that they are seeking a complete budget before weighing in on tax hikes, as HCV first reported.
