Solomon unveils $886.5M Jersey City budget with 15.5% tax hike

Picture this: You open your mailbox to find a letter from the city. Inside is the new tax bill. Your jaw drops. The number is higher—a lot higher—than you were expecting. For the average Jersey City homeowner, that means about $51 more a month from the city alone, plus $63 for the school board and $26 for the county. That’s $140 a month extra, every month, starting this year.

That’s the reality behind Mayor James Solomon’s proposed $886.5 million municipal budget, which includes a 15.5 percent tax increase. It goes before the City Council for first reading on Wednesday.

What’s in the budget?

The numbers are dizzying. The budget is $886,546,594.16—that’s nearly $887 million. Solomon says the increase is necessary because of a hidden deficit that balloons to over a quarter of a billion dollars when you count all the unpaid bills and deferred costs.

Here’s the breakdown: The administration says they cut $58 million in spending. They’re banking on $120 million in state support. And the 15.5 percent tax hike, along with growth in the city’s tax base, will bring in about $75 million in new revenue. Together, that closes the deficit.

But the real hole, according to the mayor, came from past years’ budgets that didn’t tell the whole truth. The city was covering everyday expenses—payroll, supplies, the stuff that keeps the lights on—by borrowing from its capital budget. Think of it like putting groceries on a credit card meant for a new roof. Eventually, the bill comes due.

The hidden costs

One example: The 2025 budget had set aside about $147 million for employee and retiree health insurance. But the actual cost was roughly $195 million. That’s a $48 million gap. Solomon says that’s exactly the kind of gimmick that got the city into this mess.

He calls it an “honest budget.” “We didn’t create this hole,” Solomon said in a statement. “But it is our job to climb out of it—honestly, and without the gimmicks that got us here.”

The budget has $9.7 million in cuts across 10 of the city’s 13 departments. And the city estimates it will save $25 million by switching health insurance providers.

What it means for Hudson County

Jersey City homeowners are the ones who will feel this in their wallets. But it’s not just property owners—renters, too, will likely see their landlords pass along the increase. And the ripple effect could hit local businesses that are already struggling with high costs.

For the average homeowner, the city portion alone breaks down to $51 more a month. That’s $612 a year. Add in the school and county hikes, and you’re looking at $1,680 a year. For many working families, that’s real money—a car repair, a month of groceries, a kid’s school supplies.

What people are saying

Last week, Solomon had proposed a 20 percent rate hike for the third quarter bills, but he pulled it back to 15 percent. That 15 percent proposal was voted down unanimously, 0-9, at the City Council meeting last Wednesday.

The day before the mayor’s budget announcement, five council members complained they were being unfairly blamed for laying off 31 provisional employees. They say they want to see the full budget before they sign off on any tax increase.

Solomon’s office counters that the budget is transparent and cuts are already in motion.

What comes next

Wednesday’s City Council meeting will be the first test for this budget. If it passes first reading, there will be public hearings. Residents should watch for the council to schedule those meetings. If you’re a Jersey City homeowner, now is the time to check your property’s assessed value and start understanding how the numbers apply to you.

This budget is the most consequential financial document Jersey City has seen in years. It will affect how much you pay, how the city runs, and whether the next mayor inherits the same old problems—or a cleaner slate.