Two bills meant to give Jersey City leaders more tools to deal with the city\u2019s financial crisis are dead.<\/p>\n
Gov. Mikie Sherrill on Monday killed a bill that would allow new permanent revenue streams to be created in the city and another that would allow for temporary reallocation of environmental preservation money.<\/p>\n
It\u2019s a setback for Jersey City leaders and representatives in the State House, who have been working to close the city budget’s $255 million deficit.<\/p>\n
“We’re disappointed that these bills were vetoed since they would have provided relief for Jersey City at a time when we need every penny,\u201d Megan Malloy, a spokesperson for Mayor James Solomon, said in a statement. \u201cWe’re grateful to our state delegation for fighting to get these bills through both houses and for standing up for Jersey City every step of the way.\u201d<\/p>\n
Jersey City this year received a $120 million aid package from the state, raised local taxes by 15%<\/a> and made cuts to city services to balance its budget. City leaders are beginning to work on next year\u2019s budget, and said the two bills could have been tools to help avoid another dramatic tax hike.<\/p>\n \u201cWe are anticipating something like that,\u201d Councilmember Jake Ephros said. \u201cWe have to get a lot done between now and then to make sure we are nowhere near repeating what happened this summer.\u201d<\/p>\n One bill<\/a> would have allowed Jersey City to take money dedicated to open space preservation and use it for the city\u2019s general fund, but only for next year. That money currently sits in the Municipal Open Space, Recreation and Historic Preservation Trust Fund, an account which collected about $1.2 million this year. The fund was created in 2016, when city voters passed a referendum approving a new local tax to collect money for open space projects.<\/p>\n \u201cThe voters assented to an additional tax levy on the condition that the funds raised from the levy be used exclusively for the purposes set forth in the referendum,\u201d Sherrill said in her veto statement<\/a> for the bill. \u201cThe will of the City\u2019s voters should not be set aside in the manner proposed in the bill.\u201d<\/p>\n The other bill<\/a> would have allowed Jersey City to create a new local tax on car rentals. Newark is currently the only city in the state allowed to place a local tax on car rentals. Analysis by the Office of Legislative Services<\/a> found Newark collected $10 million through the tax in 2024, though the office expected a similar tax in Jersey City would generate less revenue because Jersey City doesn\u2019t have a major airport.<\/p>\n The bill would also have allowed Jersey City to use money collected through local taxes on parking garages and lots to help cover the costs of operating mass transit services. The city collected about $10 million through those taxes in 2024, according to the Office of Legislative Services, but under current law that money can only be spent on capital projects.<\/p>\n And the bill would have allowed Jersey City to take 10% of every parking ticket, and have that money be available for any use. Current law says a municipality takes $2 from each ticket \u2013 flat rate, not a percentage \u2013 and dedicates that money for the municipal court.<\/p>\n Sherrill in her veto statement noted the bill was introduced less than a week before it was passed. She also took a shot at former Mayor Steven Fulop, who she said made \u201cirresponsible decisions\u201d that caused Jersey City\u2019s current financial crisis.<\/p>\n