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Friday 06 February 2026 17:38:00 GMT
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A dispute over the cause of Jersey City's budget crisis has spilled into public view, with Mayor James Solomon and former Mayor Steven Fulop directly contradicting each other over whether the city ever faced the deficit at the center of this year's tax increase. The clash follows the City Council's adoption of the 2026 budget on August 26, which raised the city's portion of property taxes by about 15%. Solomon has said the increase was needed to close a $255 million deficit he says he inherited from Fulop's administration. In a lengthy statement posted to his Substack, Solomon defended the budget as
A dispute over the cause of Jersey City's budget crisis has spilled into public view, with Mayor James Solomon and former Mayor Steven Fulop directly contradicting each other over whether the city ever faced the deficit at the center of this year's tax increase. The clash follows the City Council's adoption of the 2026 budget on August 26, which raised the city's portion of property taxes by about 15%. Solomon has said the increase was needed to close a $255 million deficit he says he inherited from Fulop's administration. In a lengthy statement posted to his Substack, Solomon defended the budget as "the right decision for the long-term health of our city" and said the crisis was "hidden through slick messaging and deceptive budgeting" under his predecessor. He said his finance team identified a $255 million gap between expenses and revenues, and that the figure was confirmed by the city's independent auditor and by Moody's, which downgraded the city's credit in December 2025. Solomon said the city cut $60 million from the budget and secured a $120 million state aid package to avoid a larger increase, and outlined commitments to five-year financial planning and greater developer accountability to prevent a repeat. Fulop, who did not seek re-election, rejected the account in a statement to Hudson County View. "We obviously disagree. Had I chosen to run for re-election, we would have introduced another budget with no tax increase for Jersey City residents, as we did nearly every year," he told the outlet. Fulop noted that Solomon served on the City Council during his tenure and "voted for virtually every contract and resolution he now points to." He also disputed that any deficit existed. "The audit confirms what we said all along: there was no $250 million deficit," Fulop said. "Nowhere in the audit is that figure even mentioned. This is politics, not a financial crisis." Solomon, for his part, said he voted against the budget in each of his eight years on the council and repeatedly warned about the city's finances. The two men's accounts remain sharply at odds as the city turns to its 2027 budget. #NewJersey #jerseycity #nj #jerseycityart #jersey
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