Politics
Solomon: ‘20% Increase Will Be Painful’ in Direct Address to Jersey City Residents
I want to speak directly to you, the residents of Jersey City about something that is going to affect your lives.
This week, I will put forth before the city council a 20% property tax increase, which will impact working families across the city. And I know that it is painful to hear. You are already dealing with higher costs of living from tax increases from the Board of Education and the county to increased grocery prices, increased gas prices and now this. You deserve to know the full truth about why this is happening and what we are doing about it and what comes next.
When I took office in January, my team uncovered a $255 million deficit, roughly 28% of the entire city budget left behind by the prior administration. This is a financial crisis that was manufactured while Jersey City’s economy was thriving. We have the largest tax base in New Jersey and one of the fastest growing cities in the country. This deficit was the result of deliberate choices made by the prior mayor. Draining the city’s rainy day fund by over $100 million. Selling off nearly 1,000 city properties to plug annual budget holes. Hiding $52 million in unpaid healthcare bills. Repeatedly borrowing money to cover everyday operating costs. All totaling over $650 million in one-time revenue that is now gone. These were tricks that kept the problem hidden and passed the bill to you.
On July 15th, after the state passes its budget, we will introduce our full, detailed city budget aimed at final passage in mid-August. Despite rising gas prices, significant inflation and increased healthcare costs, my administration’s budget for delivering city services spends $16 million less than my predecessor’s 2025 budget. We have gone line by line to find efficiencies and reduce costs without disrupting core city functions and working hard to ensure government serves you.
But this year, we are legally required to pay $109 million in Mayor Fulop’s unpaid bills on top of paying for the core services you need like police and fire. These unpaid bills include spending on healthcare, union wages, via transportation, retirement costs and tax appeals that were either improperly paid for with debt or never budgeted for. The bottom line, the last mayor paid for our bills on the city’s credit card and we are stuck with the bill.
I refuse to continue the practices that led to this mess. From day one, my administration has moved aggressively to reduce the deficit before asking more of residents financially. We have cut $55 million in spending through tough but responsible actions. We switched our employee healthcare insurance provider and saved $26 million with no reduction in coverage. We ended costly contracts and stopped the $20 million Pompidou museum project. We froze non-essential hiring, eliminated vacant positions and reduced overtime. We are auditing pilot agreements and holding developers and corporations accountable for every dollar they owe. And we are implementing camera assisted parking enforcement. And finally, I have taken a $1 salary for this year.
Everything we can do on our own, we are doing. But I want to be honest with you. We cannot solve a $255 million problem through cuts alone. Certainly not without gutting the services you rely on. And that’s why I’ve been fighting in Trenton for $120 million for our city. I have personally met with Governor Murphy and legislative leaders multiple times to make this case. We are in full agreement that the leaders in our state cannot continue to kick the can down the road. Like every family at a kitchen table, we must make tough decisions to balance our budget. Every elected official in Hudson County is united behind our effort and we are making this case with one voice. We continue to make progress in Trenton on this request and their support will be crucial to solving our budget crisis.
The 20% increase will be painful and I will not pretend otherwise. But I will not paper over a crisis with gimmicks the way that it was done for the past 12 years. What I can promise you is this. We will keep fighting to limit the burden on working families. We will stretch every dollar and we will never stop being honest with you about where we stand. The city has every advantage. A growing economy, the strongest tax base in New Jersey, an extraordinary workforce and Jersey City is tough. We are going to get through this together. We are going to stabilize our finances and we are going to come out of it with a city government that is as strong as the people it serves.
