Juke Joint

Jersey City is facing its worst financial crisis ever—a $255 million budget deficit that built over years of aggressive tax breaks for luxury developers and spending that outpaced revenue. The city gave billions in property tax exemptions to attract development, leaving luxury developments that "basically pay zero city tax," as the mayor put it.

When COVID hit, Jersey City used federal relief money for a one-time property tax cut, creating a massive hole once that money ran out. Now, Mayor James Solomon has secured the largest state rescue loan ever given to a New Jersey city and made deep spending cuts, but he's still proposing a 15% property tax hike.

The city council unanimously rejected it after public outcry. With reserves drained and debt mounting, options are running out. Lower- and middle-income residents who lived in Jersey City before gentrification would be hit hardest by the increase. A new budget proposal is expected later this month.

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