An interim Jersey City budget report alleges that that City Hall is currently grappling with how to deal with $109 million in unpaid bills from the prior administration, nonetheless planning to introduce a municipal spending plan to the City Council by July 15th.
Photo via jerseycitynj.org.
By John Heinis/Hudson County View
“This year, Jersey City residents are paying $109 million in taxes this year to cover the cost of the previous administration’s unpaid bills and abysmal fiscal management. $109 million dollars that is not going to run your city today,” Mayor James Solomon said in a statement.
“Those are Fulop’s unpaid bills, and they are landing on Jersey City taxpayers because he hid them. This budget is our plan to pay them off, stabilize our finances, and make sure this never happens again.”
The five-page report, dated yesterday, says that approximately $50 million in unpaid bills can be attributed to Via, the city’s settlement fund, debt services, and other reserves.
Additionally, government services overspending, healthcare, retirement costs, holiday and comp time, and tax appeals improperly paid for through borrowing account for another $59 million, the budget update claims.
The report also says that the Solomon administration had gotten the city budget down to about $756 million, about $16 million less than last year, but it will come out to about $874 million due to the aforementioned outstanding payments.
In February, Solomon now infamously blamed his predecessor, Mayor Steven Fulop, for an over quarter billion dollar deficit.
Fulop has called that figure “fugazi,” but has otherwise largely not responded to Solomon’s repeated criticisms of his 12-year tenure as mayor, outside of when they decided to slug it out over alleged improper crime reporting between 2021 and 2024, as HCV first reported.
He did not return a request for comment on Wednesday.
As far as the current Jersey City budget timeline is concerned, the administration plans to submit an estimated tax increase submitted to the City Council by June 18h, with a full budget presented to the governing body at the July 13th caucus.
The budget would then be presented at the July 15th council meeting, with budget hearings taking place between July 13th and July 24th. In that planned scenario, the municipal spending plan would be approved by mid- to late-August.
Further, the Solomon administration has formally requested $120 million in state aid (originally $150 million) and loans from the State of New Jersey and continues to advocate directly with Gov. Mikie Sherrill (D), the Department of Community Affairs, and legislative leaders in both chambers.
Furthermore, the report says that City Hal has gotten the deficit down to $199.6 million, which is attributed to canceling the the Centre Pompidou x Jersey City, Liberty Science Center High School, both as HCV first reported, as well as Via.
City Hall officials also cite switching their health insurance provider from Horizon Blue Cross Blue Shield to Aetna, claiming $25.8 million in savings, Solomon taking a $1 annual salary, directing departments to reduce spending by 10 percent, limiting public safety overtime, as well as auditing healthcare claims and tax breaks – among other things.
Generating non-tax revenue is also touched upon, which includes updating construction and permit fees “to reflect the true costs of service,” evaluating hotel occupancy and short-term rental fees, adjusting parking, signage, and billboard fees, along with assessing bulk water rates the municipal utilities authority (MUA) sells water to other municipalities.
“The three levers outlined in this report — administrative savings, non-tax revenue, and state assistance — combine to close the remaining $199.6 million gap while holding any tax increase to the lowest responsible level,” the report concludes.
“The choice before Jersey City is not whether the inherited deficit will be closed, but who absorbs the cost. The administration’s plan is designed to protect core services, public safety, and the City workforce while honoring the obligations Jersey City inherited.”