Jersey City Passes Budget With 15 Percent Tax Hike

JERSEY CITY, NJ — Jersey City's council voted to approve an $886 million budget on Wednesday that will include a 15 percent tax increase.

After the city struggled with a $255 million gap in its proposed spending plan, the State of New Jersey provided $120 million in aid.

Mayor James Solomon said the previous administration had left a deficit.

The budget covers spending from Jan. 1 through Dec. 31 of this year.

Residents and officials expressed frustrations with the size of the tax increase, but Solomon said workers had done their best to narrow the gap.

“This budget is a significant step towards solving our historic fiscal crisis and protecting basic city services," a city spokesman said Thursday. "There are no easy solutions to a budget crisis of this magnitude."

He added, "The mayor fought for and won a historic $120 million aid package from Trenton to lessen the burden on Jersey City taxpayers and protect vital city services this year — like right to counsel, safer streets and public safety. In the end, we cut city spending by over $58 million and limited this year’s tax increase to the lowest possible level.

"While both the cuts and tax increase are painful, we believe they are the first steps towards getting Jersey City’s finances back to healthy and stable.”

The administration held a series of public hearings around the city to discuss the increase.

The aid package included $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 outstanding debt that must be paid this year.