JERSEY CITY, NJ — Anger over Jersey City’s proposed property tax increase spilled into the streets this week, as residents protested a plan that could raise the municipal tax levy by about 15.5%.
The proposal is tied to a major budget shortfall that Mayor James Solomon says his administration inherited from the previous administration. CBS New York reported that residents gathered Monday to protest the increase, with some saying the additional tax burden could force them to leave the city.
For many homeowners, the issue is no longer an abstract budget debate.
It is about whether they can afford to stay in Jersey City.
Residents say the increase could push them out
Some residents told CBS New York that they are already struggling with the cost of living and fear another major increase in property taxes could make their homes unaffordable.
The proposed hike is part of the city’s effort to close a large budget gap. Earlier this summer, Solomon said Jersey City was facing a roughly $255 million deficit.
The administration initially discussed an increase of around 20%, but that figure was reduced after the city secured $120 million in state assistance, including $15 million in direct aid and a $105 million loan.
Even with that help, the city says substantial cuts and additional revenue are still necessary.
Mayor warns of layoffs and service cuts
Solomon has argued that rejecting a substantial tax increase could lead to mass layoffs, including cuts affecting public safety.
He has also pointed to reductions already being made in areas such as park maintenance, transportation services and other city spending.
The mayor has blamed the financial crisis on former Mayor Steven Fulop’s administration, saying the city relied too heavily on borrowing and delayed difficult financial decisions.
Fulop has strongly rejected that characterization and accused Solomon of playing politics.
Protest brings the budget fight outside City Hall
The growing dispute has now moved beyond council meetings and budget documents.
Residents carrying signs and speaking publicly against the increase say the city should find another way to close the deficit rather than placing such a large burden on property owners.
The protest also shows how quickly the budget crisis has become one of the biggest political issues in Jersey City.
For residents, the question is simple but difficult:
How much more can homeowners realistically be expected to pay?
The final budget has not yet been approved. CBS New York reports that a City Council vote is expected on August 26.
Until then, the pressure on City Hall is likely to continue.
Source: CBS New York
By NJ RADAR Team