JERSEY CITY — Jersey City Mayor James Solomon is accusing his predecessor and the current head of a powerful New York business organization of misleading the public about the city’s true financial condition, following the discovery of what officials describe as a deep structural budget deficit.

According to Solomon, a detailed review of city finances uncovered a projected shortfall exceeding $250 million, along with significant long-term liabilities that were not clearly disclosed in prior budgets. Among the most serious findings, city officials say, are tens of millions of dollars in unpaid and undercounted employee healthcare costs that are now coming due.

The mayor claims these obligations were effectively masked through accounting practices that minimized their visibility, allowing the city to present a healthier fiscal picture than actually existed. He described the situation as more than routine budget stress, calling it a fundamental breakdown in transparency.

At the center of the dispute is former Mayor Steven Fulop, who left City Hall to lead the Partnership for New York City, an influential nonprofit representing major corporate and financial interests. Solomon alleges that financial representations made during Fulop’s administration failed to fully reflect the scope of the city’s liabilities, leaving the current government to confront the consequences.

City officials point to practices such as deferring costs, relying on one-time revenue sources, and selling public land to cover operating expenses as contributing factors. While these measures helped avoid property tax increases in the short term, Solomon argues they created long-term instability that is now impossible to ignore.

Fulop has pushed back against the accusations, arguing that Jersey City’s budgets were subject to state oversight and that the city maintained strong credit ratings during his tenure. He has also emphasized that property taxes were not raised under his administration, a point supporters cite as evidence of responsible fiscal management.

The dispute has quickly drawn the attention of the City Council, with several members calling for expanded audits and clearer disclosure of long-term obligations. Council leaders say residents deserve a full accounting before major budget decisions are made.

For Jersey City residents, the stakes are high. While no immediate tax increases have been announced, city officials acknowledge that difficult choices may lie ahead, including potential service reductions, delayed infrastructure projects, or new revenue measures if the gap cannot be closed.

Mayor Solomon says his administration is preparing a multi-year recovery plan focused on transparency, long-term stability, and public engagement. Community meetings and budget hearings are expected in the coming weeks as the city begins navigating what could be one of the most challenging fiscal periods in recent history.

Sources

• Gothamist reporting on Jersey City budget findings and mayoral statements
• Public statements from Jersey City officials
• City budget and financial disclosure documents