FOR IMMEDIATE RELEASE
Contact: Nathaniel Styer | Communications Director
[email protected]
MAYOR SOLOMON ANNOUNCES REVISED 15% TAX RATE INCREASE
City listened, takes actions, and lowers proposed increase from 20% to 15% through additional reductions to city spending and unlocking restricted funds
JERSEY CITY, N.J. (June 29, 2026) — Mayor James Solomon today announced a revised 2026 municipal tax rate increase of 15%, down from the 20% increase proposed in June, as part of the ongoing effort to close the structural deficit inherited from the previous administration. The reduction comes after Mayor Solomon secured a historic $120 million in aid and loans from the State of New Jersey, held conversations with the Jersey City community, and instituted cuts to city spending.
"Fifteen percent is better than twenty, but I cannot tell you this solves our problem without consequences," said Mayor James Solomon. "We know how difficult these increases are, and in combination with the historic amount of state aid we secured in Trenton, my team went back and cut even more city spending. Solving a deficit this size was never going to be easy, and the Administration and City Council must make hard decisions in the coming weeks and months to make the budgets for 2026 and 2027 work without further large tax increases."
The Math Behind the Decision
After $120 million in state aid and the cost-cutting measures already identified, the city still faces a structural gap of approximately $80 million that must be closed in the 2026 budget. A 15% rate increase is projected to generate approximately $60 million in new annual revenue — leaving a remaining gap of roughly $20 million that cannot be covered by the tax increase alone.
Closing that remaining gap will require:
- Over $10 million in reductions to city services & spending, with departments directed to identify what can be scaled back without compromising public safety. Cuts include:
- Approx. $4 million - reducing Via Transit Service
- Approx. $1 million – bringing litter basket collection in-house to DPW
- Approx. $800,000 – canceling general parks maintenance contract, moving limited service in-house
- Approx. $190,000 – identified efficiencies in Dept. of Recreation
- Approx. $4,400,000 – reduction in spending on various contracts
- $10 million in unlocked restricted city funds – legislation advancing in Trenton will unlock restricted funds already in city accounts to pay off recurring leases through a one-time payment – saving money this year and reducing the size of the structural deficit in 2027and onward.
What Comes Next
The Administration intends to bring forward a detailed reorganization and service-reduction plan to the City Council with the 2026 budget on July 15. The Mayor and Council Members are committed to engaging city employees, employee unions, and residents throughout that process and to protecting core public safety and essential services to the greatest extent possible.
The 15% rate increase will be submitted to the City Council for approval, with the City's full 2026 budget introduction.
The City will continue to report on this process openly and will provide updates as the reorganization plan is developed.
Looking Forward to 2027
At this time, the Administration projects that Jersey City will face significant challenges to achieving a balanced budget in 2027. This deficit is a consequence of lowering this year’s tax increase to 15%, along with the failure of the prior administration to keep revenues in line with expenses. Unaddressed, this deficit will recur every year.
The Administration will engage this fall in a reorganization of city government, restructuring departments and consolidating functions to reduce recurring annual costs.
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“Jersey City’s economic stabilization and recovery is only possible through the united work of the entire Hudson County delegation,” said Mayor Solomon. “From day one, we worked hand-in-hand with Assemblymember Brennan, Assemblymember Bhalla, Assemblymember Walker, Assemblymember Samson, Senator Mukherji, Senator McKnight, and County Executive Guy to make the case in Trenton that letting the state’s economic engine fail will only hurt the long-term health of New Jersey. Every resident should know that this united delegation delivered on their behalf, and through their tireless work we are able to limit the impact on residents and avoid dangerously drastic cuts.”
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"We fought to get state aid for Jersey City so this budget deficit wouldn't fall on residents alone. It would have been a five-alarm fire without these funds," said Assemblywoman Katie Brennan (D-Jersey City). "None of the families here caused this budget crisis, so getting relief was our top priority in Trenton. I want to thank all of the Jersey City residents and local officials who spoke out and sounded the alarm, along with my colleagues in Trenton who came together to get this done."
"I'm proud that we were able to secure substantial state aid to help Jersey City dig out of this hole and get its long-term finances in order," said Assemblyman Ravi Bhalla (D-Hoboken). “It took real effort among Hudson County’s Assembly delegation and teamwork across every level of government to deliver this level of state support."
“We worked hard to secure this funding from the state, and this is an important step in the right direction,” said Assemblymember Jerry Walker. “But the work is not done. We know residents are still feeling the burden of rising taxes, and I will do everything I can as Assemblyman to fight for additional aid, provide relief, and make our communities more affordable for working families.”
“The scale of this assistance is extraordinary because the challenge before the city is extraordinary,” said Senator Raj Mukherji, the sponsor of the appropriations. “This critically necessary state aid package is an investment in the fiscal stability of New Jersey’s largest local tax base which also outkicks its coverage in meeting the state’s needs. A fiscal crisis of this magnitude cannot be resolved on the backs of working-class taxpayers and renters. Generating more than $1.5 billion in revenue for state coffers and supporting 110,000 private sector jobs, we are the economic engine of the state. When that engine sputters, the effects ripple far beyond our city.”
“This has been a difficult and unforeseen situation that took a lot of effort and diplomacy to reach a workable solution, but I’m glad to see taxpayers will receive some relief,” said Hudson County Executive Craig Guy. “I commend Mayor Solomon’s partnership on this effort to help Jersey City residents. I’ve long prioritized Hudson County’s fiscal health and it is critically important for the county and the state that Jersey City’s significant budget deficit be remedied both this year and moving forward. Over these last months I’ve had countless calls, coffees and meetings with the governor and her staff, Senator Stack, Senator Mukherji, Senate President Scutari, Speaker Coughlin, Mayor Solomon and our staffs, and I would like to thank legislative leadership, the Hudson County legislative delegation and, in particular, Governor Sherrill for working in partnership towards this resolution.”
“This assistance reflects what can be accomplished when every level of government works together to solve a problem that no city should have to face in isolation,” said Senator Angela V. McKnight. “Jersey City's families deserve a stable fiscal foundation and reliable public services. While difficult work remains, today’s announcement provides the city with the breathing room it needs to move forward responsibly.”
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Nathaniel Styer
Communications Director | City of Jersey City
[email protected]