JERSEY CITY, N.J. (VINnews) — Jersey City’s City Council approved an $886 million budget that raises municipal property taxes 15.15% to close a $255 million deficit, officials said after a special meeting Wednesday.

The tax increase, combined with $58 million in spending cuts across most city departments, follows months of negotiations with the state. New Jersey originally pressed for a 20% hike before settling on 15.15% after public pushback and council amendments. The city also secured a $120 million state aid package — a $105 million loan and a $15 million grant — that gives the Department of Community Affairs oversight of spending and the power to set the tax rate if officials are unsatisfied.

An average home assessed at $480,000 will see municipal taxes rise from $11,203 in 2025 to $12,813. The Jersey City Board of Education is separately raising school taxes 14%, and Hudson County is raising its levy 14%. Landlords are expected to pass added costs to renters.

Eight of nine council members voted for the budget. Councilmember Michael Griffin abstained.

“I couldn’t bring myself to support the tax increase knowing that people are going to be pushed out of their homes and there’s no real relief for the homeowners,” Griffin said. “I grew up in a community which at one time was 80% below the poverty rate. I know what it’s like to struggle.”

Mayor James Solomon’s administration said the deficit was inherited from former Mayor Steven Fulop, who left office in January after three terms. Officials have blamed years of one-time revenue, deferred spending and accounting practices. An audit released this month found the city overspent on health benefits in 2025, lacked adequate internal controls and did not have a complete inventory of city-owned land, vehicles and equipment.

Nathaniel Styer, a spokesman for Solomon, said there were “no easy solutions to a budget crisis of this magnitude.”

“The mayor fought for and won a historic $120 million aid package from Trenton to lessen the burden on Jersey City taxpayers and protect vital city services this year,” Styer said. “While both the cuts and tax increase are painful, we believe they are the first steps towards getting Jersey City’s finances back to healthy and stable.”

Council President Denise Ridley called the vote difficult but necessary. “Every vote isn’t going to be an easy vote, but I think the council made the best vote with the position that they’re in,” she said.

Councilmember Eleana Little said the alternative was worse. “If we don’t pass a budget doing this, not only will Jersey City be hamstrung by an enormous budget hole, but the state could then take over entirely and raise taxes as much as they want,” Little said. “There is no good option here, only bad options and less bad options.”

The budget restores funding to rehire some of the 31 provisional workers laid off last month, including a driver for the senior bus service. It also cuts $200,000 from police overtime, scales back some services and reserves money for expected union raises. Eight of 11 public-worker unions are out of contract, some for more than six years.

Fulop, who did not seek re-election and later lost a gubernatorial bid, has disputed the characterization of his tenure. In an earlier statement he said that had he run again, “we would have introduced another budget with no tax increase for Jersey City residents as we did nearly every year.”

Councilmember Rolando Lavarro said the blame game should end with this vote. “This final budget and this 15.15% tax increase now belong to us,” he said.City officials said they plan to start the 2027 budget process earlier and will increase outreach to residents facing higher bills. Ridley said another double-digit increase next year is not the council’s goal and will depend on revenue collected this year.