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NJ Gov. Sherrill vetoes 2 bills meant to give strapped Jersey City more revenue tools
By
Michael Sol Warren
Published Sep 29, 2026
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By
Michael Sol Warren
Published Sep 29, 2026
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Two bills meant to give Jersey City leaders more tools to deal with the city’s financial crisis are dead.
Gov. Mikie Sherrill on Monday killed a bill that would allow new permanent revenue streams to be created in the city and another that would allow for temporary reallocation of environmental preservation money.
It’s a setback for Jersey City leaders and representatives in the State House, who have been working to close the city budget's $255 million deficit.
"We're disappointed that these bills were vetoed since they would have provided relief for Jersey City at a time when we need every penny,” Megan Malloy, a spokesperson for Mayor James Solomon, said in a statement. “We're grateful to our state delegation for fighting to get these bills through both houses and for standing up for Jersey City every step of the way.”
Jersey City this year received a $120 million aid package from the state, raised local taxes by 15% and made cuts to city services to balance its budget. City leaders are beginning to work on next year’s budget, and said the two bills could have been tools to help avoid another dramatic tax hike.
“We are anticipating something like that,” Councilmember Jake Ephros said. “We have to get a lot done between now and then to make sure we are nowhere near repeating what happened this summer.”
One bill would have allowed Jersey City to take money dedicated to open space preservation and use it for the city’s general fund, but only for next year. That money currently sits in the Municipal Open Space, Recreation and Historic Preservation Trust Fund, an account which collected about $1.2 million this year. The fund was created in 2016, when city voters passed a referendum approving a new local tax to collect money for open space projects.
“The voters assented to an additional tax levy on the condition that the funds raised from the levy be used exclusively for the purposes set forth in the referendum,” Sherrill said in her veto statement for the bill. “The will of the City’s voters should not be set aside in the manner proposed in the bill.”
The other bill would have allowed Jersey City to create a new local tax on car rentals. Newark is currently the only city in the state allowed to place a local tax on car rentals. Analysis by the Office of Legislative Services found Newark collected $10 million through the tax in 2024, though the office expected a similar tax in Jersey City would generate less revenue because Jersey City doesn’t have a major airport.
The bill would also have allowed Jersey City to use money collected through local taxes on parking garages and lots to help cover the costs of operating mass transit services. The city collected about $10 million through those taxes in 2024, according to the Office of Legislative Services, but under current law that money can only be spent on capital projects.
And the bill would have allowed Jersey City to take 10% of every parking ticket, and have that money be available for any use. Current law says a municipality takes $2 from each ticket – flat rate, not a percentage – and dedicates that money for the municipal court.
Sherrill in her veto statement noted the bill was introduced less than a week before it was passed. She also took a shot at former Mayor Steven Fulop, who she said made “irresponsible decisions” that caused Jersey City’s current financial crisis.
“The prior administration’s over-reliance on short-term budget gimmicks and “one-shots” have seriously undermined the city’s long-term stability,” Sherrill said in the veto statement. “Going forward, sustainable revenue growth and structural reforms must be a priority.”
Sherrill said the bill “is not appropriate at this time.”
Councilmember Frank Gilmore said he was surprised by the vetoes. He said he thought Sherrill would have supported local leaders trying to be creative in their efforts to lessen another potential tax increase next year.
“We should be using everything at our disposal to relieve the burden on the taxpayers of Jersey City,” Gilmore said.
Ephros said he had reservations about the idea to raid the city’s open space fund. But he was supportive of the possible rental car tax.
“That would’ve been a really great new source of income for us,” Ephros said. “This is not something that I think would’ve been overly burdensome on everyday people, and it could’ve brought a lot of new money.”
Councilmember Rolando Lavarro said he hoped Sherrill would reconsider new versions of the bills in the future.
“These measures asked commuters and visitors to share the cost of a city they rely on, and I hope we can work with the governor to bring them back,” Lavarro said in a statement.
Tagged
Politics
budget
new jersey
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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