JERSEY CITY, NJ —
June 18, 2026 |
By DailyHudson Staff
Solomon administration details the deficit and a plan to close it, including state aid and spending cuts.
For weeks, the talk around town has been about a mysterious hole in the city budget. Now we have a number: $109 million.
That’s how much in unpaid bills the administration of Mayor James Solomon says it inherited from the previous administration of Steven Fulop. The figure comes from an interim budget report released Wednesday, and it’s already become the central fight in Jersey City’s annual budget dance.
According to the five-page report, $50 million of those bills are tied to Via, the city’s settlement fund, debt services, and other reserves. Another $59 million comes from overspending in government services, healthcare, retirement costs, holiday and comp time, and tax appeals that were improperly paid for through borrowing.
“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,” 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.”
How we got here
In February, Solomon first sounded the alarm about a deficit he pegged at over a quarter of a billion dollars. Fulop, who served as mayor for 12 years, called that figure “fugazi” but has largely stayed quiet on the specifics — except for a public back-and-forth over alleged improper crime reporting between 2021 and 2024.
Fulop did not return a request for comment on Wednesday.
The new report paints a clearer picture: the original city budget was around $756 million, about $16 million lower than last year, but the $109 million in unpaid bills pushes the real cost to about $874 million.
What it means for your wallet
If you live in Jersey City, you’re wondering what this means for your taxes. The short answer: there will likely be an increase, but the administration says they’re trying to keep it as low as possible.
The plan is to introduce a budget to the City Council by July 15th, with hearings from July 13th to July 24th, and a final vote by mid- to late-August. An estimated tax increase will be submitted to the council by June 18th.
To close the remaining $199.6 million gap, the report outlines three main levers: administrative savings, non-tax revenue, and state assistance. The administration has already cut the deficit from $250 million to $199.6 million by canceling the Centre Pompidou x Jersey City and the Liberty Science Center High School projects, both first reported by Hudson County View.
Other savings include switching health insurance from Horizon Blue Cross Blue Shield to Aetna, saving $25.8 million; Solomon taking a $1 annual salary; directing departments to reduce spending by 10 percent; and limiting public safety overtime.
What people are saying
The report says the Solomon administration has formally requested $120 million in state aid and loans from New Jersey and continues to advocate with Gov. Mikie Sherrill, the Department of Community Affairs, and legislative leaders.
“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.”
Non-tax revenue ideas include updating construction and permit fees to reflect true costs, evaluating hotel occupancy and short-term rental fees, adjusting parking and signage fees, and assessing bulk water rates the municipal utilities authority sells to other towns.
What’s next
Residents should mark their calendars for the June 18th council meeting, where they’ll get the first clear picture of how much more they might pay. The full budget goes to the council on July 13th, with hearings running through July 24th. Final approval is expected by late August.
This story is still developing, and we’ll keep you updated as the numbers become clearer. For now, know that your city government is working through a very real financial mess — and they’re telling you exactly how they plan to clean it up.
Source: Hudson County View