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Jersey City plans smaller tax hikes after NJ lawmakers approve $120M bailout
By
Michael Sol Warren
and
Tiffany Hanssen
Published Jun 30, 2026
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Michael Sol Warren / Gothamist
By
Michael Sol Warren
and
Tiffany Hanssen
Published Jun 30, 2026
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Jersey City residents are likely to shoulder a little less of a tax increase as officials aim to close a $255 million budget shortfall.
Mayor James Solomon has revised a planned 20% property tax hike down to 15% following the news that state leaders were preparing to deliver a $120 million aid package to the city.
Solomon told WNYC in an interview Tuesday morning he knows the plan is still a heavy burden for residents.
"It's massive. It's gonna be extremely difficult and I don't shy away from the pain that an increase like this will cause,” Solomon said.
The state aid package is split between a $105 million loan that is included in a supplemental spending bill for the current state budget, and a $15 million transitional aid grant included in the next state budget. State lawmakers will take final votes on the state budget and supplemental spending bill on Tuesday. The new state budget must be enacted by Wednesday to avoid a government shutdown.
The Jersey City council is scheduled to vote on the local tax hike during a special meeting Wednesday evening.
“ We are grateful for the governor and the Legislature for helping us through a really difficult time. But we also have to do our part,” Solomon said.
The city has already saved about $55 million in moves earlier this year, including switching health care providers and cancelling the Centre Pompidou project. Solomon said the state aid package and the 15% tax increase will still leave Jersey City $20 million short of closing its deficit. His administration plans to further cut city services, with plans to trim roughly $6 million from various contracts for services like litter collection, which will be brought in-house to the Department of Public Works.
Jersey City also expects to save $4 million by scaling back the Via Jersey City microtransit service. Starting Wednesday, the service will only run on weekdays from 6:30 a.m. to 7 p.m. A new pricing scheme will charge a flat $2.55 fare for all trips. A distance cap will be placed on trips, except for those that require a wheelchair accessible vehicle. And in some cases Via trips may be declined automatically if a better public transit option is available.
The city also hopes to use $10 million in previously restricted funds to pay off various leases, something Solomon says will cut recurring expenses from future budgets. That move will require approval from state lawmakers.
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James Solomon
jersey city
new jersey
tax hike
Michael Sol Warren
Michael Sol Warren covers New Jersey for WNYC and Gothamist, and previously reported on issues around the Garden State for NJ Spotlight News and NJ Advance Media. He can be reached at [email protected].
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Tiffany Hanssen
Tiffany is a host on WNYC. You can hear her regularly on Saturdays and Sundays during All Things Considered.
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Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
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