Jersey City To Hold 4 Hearings On Proposed Budget And 15 Percent Tax Increase

JERSEY CITY, NJ — After struggling with a $255 million hole in Jersey City's proposed $874 million budget, officials said Monday the State of New Jersey will provide $120 million to narrow the gap.

Mayor James Solomon said Tuesday that residents may now have to pay a 15 percent municipal tax increase instead of 20 percent. But as the budget covers spending from Jan. 1 through Dec. 31, it may be a lot at once.

The city has scheduled four public hearings for residents to disscuss the spending plan, and will schedule two more, they said.

In Person And Virtual (Use Link)

The first two hearings will take place next Tuesday and Wednesday, the city said. They will be held at the Miracle Temple Pentacostal Church and the Al-Tawheed Islamic Center, respectively. The events will also be livestreamed on the city's YouTube and Instagram pages (here's a link.)

The city will soon announce more meetings on July 11 and 16, officials said. Details of all four meetings will be here.

Budgets Changes

The aid announcement came after the Senate Budget and Appropriations Committee and Assembly Budget Committee voted on the state's general appropriations bill on Sunday night.

Solomon said that, combined with $55 million in savings previously identified, the aid reduces Jersey City’s remaining 2026 deficit to $80 million.

Solomon plans to introduce the budget proposal to the City Council on July 15, hoping to pass it by mid-August.

The proposed budget is $874 million. READ MORE: Jersey City Postpones Vote On 20 Percen Tax Hike

The city said it still must raise revenue and cut spending to close what it described as a $90 million structural deficit in order to balance the 2026 budget and annual budgets moving forward.

"Since day one, my team and I were laser-focused on finding solutions to the city’s fiscal crisis that avoided worst case scenarios of a 31 percent tax increase and devastating cuts to core city services," said Solomon.

He added, "Today, Governor [Mikie] Sherrill, Senate President Scutari, and Assembly Speaker Coughlin demonstrated historic leadership as part of an historic partnership."

The aid package includes $105 million in long-term, low interest debt and $15 million in transitional aid grants, according to the city.

The city said the money will primarily be applied to payment of outstanding debt that must be paid this year.

Sen. Raj Mukherji, identified as the sponsor of the The administration said the aid builds on work already underway, including a transition to a new health insurance administrator, audits of PILOT agreements and tax abatements, updated developer fees and spending reductions by city departments.