Jersey City cannot continue to rely on short-term fixes and tax increases to manage long-term fiscal challenges. The current approach—pay now, tax later—is unsustainable. Independent audit reports highlight persistent inefficiencies, lack of transparency, and inadequate financial oversight. These issues are solvable through honest assessment, disciplined planning, and strong leadership.

As a former mayor, I have successfully fixed struggling municipal finances, and Jersey City can achieve the same. Below is my comprehensive plan to restore fiscal health, reduce taxpayer burden, and build a foundation for long-term economic sustainability.

● Stabilize property taxes   

● Eliminate the current deficit and establish a budget surplus   

● Resolve the $94 million budget shortfall   

● Implement zero-based budgeting   

● Reduce unnecessary municipal spending   

● Boost transparency and accountability across all departments  

● Jersey City overspent by $73 million.

● Contracts ran up to 20% over budget.

● $100 million in unbudgeted spending was deferred to the following year.

● In an employee audit, 76%of overtime records were inaccurate.

● The City has $219 million in unpaid expenses dating back to 2018.

● The City failed to reconcile bank accounts and departmental records.  

 1. Zero-Based Budgeting (ZBB)

● Every department must justify every dollar spent.

● Budget planning will begin from a “zero base,” not from past expenditures.

● Prioritize funding for essential services and high-impact programs.
 

2. Spending Limits Based on Growth and Inflation

● Tie spending increases with population growth and inflation rates.
● Avoid artificial budget expansions disconnected from economic realities.

3. Transparency and Public Oversight

● Post all audit reports and financial records on the City website.
● Mandate fiscal impact analysis for all new projects and programs.

Key Audit Concerns:

● An $11.5 million Community Development Block Grant (CDBG) is at risk due to non-compliance.

● The City lacks dedicated staff to apply for and manage grants.

Strategic Actions:

● Establish a Centralized Grant Management Office (GMO).
● Hire professional grant writers and project managers.
● Develop a Strategic Grant Plan aligned with the City’s priorities.
● Implement systems to ensure compliance with state and federal regulations. 

Notable Inefficiencies:

● $3.1 million in payroll tax overpayments (from 2019) were unreturned.

● The State Labor Department fined the City $600,000. 

● Emergency spending processes lack proper controls.

● Contract overpayments exceed 20% in multiple cases.
 

Corrective Actions:

● Review departmental performance for redundancy and inefficiency.

● Consolidate overlapping functions to streamline operations.

● Implement modern procurement systems and centralized accounting practices.

● Ensure health benefits are limited to verified, eligible employees.

 ● No reconciliation between bank statements and the general ledger.
● Inconsistent financial records across departments.
 

Policy Solutions

1. Adopt an Integrated Financial Management System (IFMS) such as Tyler Munis or OpenGov.
2. Enforce monthly bank reconciliations and interdepartmental reporting standards.
3. Establish financial controls aligned with GAAP, GASB, and Uniform Guidance (2 CFR 200).
4. Conduct regular internal audits, with      results made publicly available.
5. Train staff on financial ethics, reporting, and compliance.

● Stop excessive reliance on municipal bonds.

● Refinance existing debt at lower interest rates.

● Strengthen Jersey City’s credit rating through better cash management.
 

Current Credit Rating Concerns:

● Moody’s: “A significant operating deficit” (April 2023)

● S&P Global: “Uncertainty in financial performance” (June 2023)
 

Fitch: “Weak long-term liability metrics” (April 2023) 

Audit Insights:

● Property taxes increased 51% from 2021 to 2024.

● The average homeowner’s tax bill rose from $7,409 (2020) to $10,560 (2023).

● Collection rates are declining, prompting a doubling of the reserve for unpaid taxes.

Solutions:

● Enforce accurate and fair property assessments.
● Resolve $10 million in property tax appeals. 

● Improve tax collection infrastructure and offer multiple payment options.

● Support qualified tax exemptions for seniors and veterans.

● Launch public education campaigns to build trust and voluntary compliance. 

 Questionable Investments:

● Centre Pompidou: $58M pledged; state support withdrawn in 2024. 

● Loew’s Theatre: Budget grew from $72M to over $105M. 

● Bayfront Redevelopment: $170M land acquisition; $64M in tax credits granted.

● SciTech Scity: 12.5 acres donated; land value disputed ($18M–$40M).  

Strategic Priorities Instead:

● Invest in public schools, recreation centers, and youth employment programs.

● Fund clean streets, parks, and athletic fields in every neighborhood. 

● Support economic development through business partnerships and job creation 

● Fund clean streets, parks, and athletic fields in every neighborhood. 

● Support economic development through business partnerships and job creation 

● Attract businesses to expand the tax base.

● Partner with industry leaders and local entrepreneurs.
● Provide grants and training to small businesses, especially in Special Improvement Districts (SIDs).
● Return certain municipal expenses (e.g., MUA waste disposal) to the City budget for transparency.

● Facilitate access to state/federal funding and business development services. 

 Jersey City’s fiscal crisis is serious but solvable. We can restore our financial integrity with disciplined budgeting, transparent governance, and responsible leadership. I have done this before—and with the will to act, we can do it again.

Just as residents live within their means, so too must our government. Together, we can build a stronger, fairer, and more financially resilient Jersey City.