Jersey City must pay $109M in unpaid bills from prior administration, report says

Picture this: You pay your taxes, you expect the roads to get fixed, the schools to run, your kids to be safe. But what if a chunk of that money — $109 million this year alone — is going to cover bills from years ago, bills no one told you about?

That is what Jersey City Mayor James Solomon is telling residents. His administration just released a five-page interim budget report alleging that the city is sitting on $109 million in unpaid bills left over from former Mayor Steven Fulop’s tenure. And Solomon says the current budget has to account for that money, or the city can’t move forward.

Here is what happened: The report, dated May 21, says about $50 million of those unpaid bills come from money that was supposed to be set aside for things like the city’s settlement fund, debt service, and other reserves — but never was. The other $59 million comes from overspending on government services, healthcare, retirement costs, and even holiday and comp time for employees. There were also tax appeals that, according to the report, were paid for improperly through borrowing.

Solomon laid it out plainly in a statement: “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… Those are Fulop’s unpaid bills, and they are landing on Jersey City taxpayers because he hid them.”

The report says the Solomon administration had gotten the annual budget down to about $756 million — roughly $16 million less than last year. But once you factor in those unpaid bills, the total is about $874 million. That’s a lot of money, but the administration says it’s a clear picture of the hole they inherited.

How did we get here?

Back in February, Solomon made a startling claim: The city was facing a deficit of over a quarter billion dollars. Fulop, now running for governor, called that number “fugazi” — slang for fake. But he has mostly stayed quiet about Solomon’s repeated criticisms, except for when the two went head-to-head over alleged improper crime reporting between 2021 and 2024. Fulop did not return a request for comment on Wednesday.

Since then, the Solomon administration has been working to close that gap. They’ve already made some tough choices. They canceled two major projects: the Centre Pompidou x Jersey City art museum and the Liberty Science Center High School. Both were cornerstones of Fulop’s development vision for the city. The administration also switched the city’s health insurance provider from Horizon Blue Cross Blue Shield to Aetna, which they say will save $25.8 million. Mayor Solomon is taking a $1 annual salary. Departments have been told to cut spending by 10%, public safety overtime has been limited, and the city is auditing healthcare claims and tax breaks.

All of that, combined with some state aid they’ve applied for, has brought the deficit down to $199.6 million, according to the report.

What does this mean for Hudson County residents?

For Jersey City families, this is not just a political spat. It means that this year’s budget, and potentially future budgets, are being pulled in two directions: pay the old bills, or pay for new things. If you were hoping for a new park, a library renovation, or a youth program expansion, it might have to wait. The city is in “fix the roof” mode, not “add a new wing.”

For commuters, small business owners, and every resident, property taxes are the big question. The report says the city will submit an estimated tax increase to the City Council by June 18. A full budget will be presented at the July 13 caucus and formally at the July 15 council meeting, with hearings through July 24. The plan is to have the budget approved by mid- to late-August. So by the end of summer, we’ll all know exactly what kind of bill is coming our way.

But the administration says they are trying to keep any tax increase as low as possible. They are looking for other sources of money: updating construction and permit fees, evaluating hotel and short-term rental fees, adjusting parking and billboard fees, and even assessing bulk water rates the Municipal Utilities Authority charges other towns. They have also formally requested $120 million in state aid and loans from New Jersey, and are pushing for support from Governor Mikie Sherrill and state legislators.

What people are saying

Mayor Solomon is framing this as a choice — not an easy one, but a clear one. “The choice before Jersey City is not whether the inherited deficit will be closed, but who absorbs the cost,” the report states. “The administration’s plan is designed to protect core services, public safety, and the City workforce while honoring the obligations Jersey City inherited.”

Fulop, for his part, has not responded to the latest report. That silence is not unusual, but it does leave a lot of questions unanswered. How did the bills go unpaid for so long? Were there no warnings? And why were the projects cancelled? These are the kinds of questions voters will be thinking about as the gubernatorial race heats up.

What comes next

Residents should keep an eye on the city council calendar. The key dates are June 18 (proposed tax increase), July 13 (budget caucus), July 15 (budget introduction), and the hearings from July 13 to July 24. If you want to have a say, now is the time to contact your councilperson, attend a hearing, or at least read the budget documents when they come out. The city’s finances affect everyone from the family on Bergen Avenue to the commuter at Grove Street PATH.

This story is still unfolding. What is clear is that Jersey City is in a financial corner, and the people who live here are going to feel the squeeze — one way or another. The hope is that after these bills are paid, the city can finally start looking forward again.