JERSEY CITY — Jersey City Mayor James Solomon announced Thursday that he will cut his salary to $1 in 2026, following the release of a city-commissioned financial report warning of an estimated $250 million budget crisis heading into the next fiscal year.

The announcement came one day after City Hall published what officials described as a “financial emergency” report outlining a structural deficit that could affect nearly a third of the city’s annual operating budget. Solomon said the findings reveal long-standing fiscal problems that were masked for years through temporary revenue sources and delayed obligations.

According to the report, the projected shortfall stems from a combination of factors, including the repeated use of one-time revenues, underbudgeting of employee and retiree health care costs, and decisions that pushed routine expenses into future budget cycles. City officials say those practices left Jersey City financially vulnerable despite strong economic growth and rising property values.

Solomon placed responsibility for the current crisis on the prior administration, arguing that fiscal decisions made over multiple years created an unsustainable financial structure. In a statement, the mayor said his decision to take a symbolic $1 salary is meant to demonstrate accountability as the city works to stabilize its finances.

The mayor’s office contrasted the move with previous leadership, noting that the former administration increased the mayoral salary during its tenure. Solomon said the focus now must be on transparency and rebuilding public trust as residents face potential tax increases or service reductions.

City officials estimate the deficit represents roughly 28 percent of the city’s operating budget. The report also highlighted significant gaps in projected health benefit costs, with tens of millions of dollars in expenses underestimated in recent fiscal years.

As part of its response, the administration says it has already taken steps to reduce costs, including changing health insurance administrators, a move officials project could save approximately $30 million in 2026. The city has also brought in outside financial experts to assist with developing a multi-year recovery plan.

Solomon said the administration plans to hold public meetings in the coming weeks as budget discussions continue, calling the situation “serious but fixable” if addressed honestly.

Sources

• City of Jersey City — Mayor’s Office press release on 2026 salary decision
• City of Jersey City — Financial Emergency Report detailing projected 2026 budget deficit
• City of Jersey City — Department of Finance budget and health benefits projections