JERSEY CITY—The Board of Education approved a new slate of property taxes last Thursday evening, marking the second consecutive year of double-digit school tax hikes in the state’s second-largest city. The 17 percent levy follows last year's 20 percent jump that cost the average homeowner about $2,000. The tax hikes also come as Jersey City is set to lose $74 million in state aid over the next five years under Governor Mikie Sherrill's budget proposal.

State Aid Cut Drives Local Tax Burden

Superintendent Norma Fernandez warned on March 18 that the district’s projected $100 million deficit leaves it "one crisis away from catastrophe." At the five-hour marathon meeting at the Dr. Martin Luther King Jr. School, six trustees voted for the tax hike and three against it. Names were not listed in the board's March 26 public meeting notice. The preliminary approval begins a mandatory public review period before the final vote on April 30.

The 17 percent increase comes as Jersey City absorbs a $3.88 million reduction in state aid for the 2026-2027 school year. The reduction represents a three percent decrease in state support, and it is the latest cut in the state’s five-year process of withdrawing guaranteed aid. The hikes reflect the district's loss of "hold harmless" adjustment aid, the provision that shielded districts from formula cuts under the School Funding Reform Act of 2008. Jersey City's funding has dropped from $168.5 million in 2020 to $100 million for the upcoming year.

The $3.88 million cut follows a $6.14 million reduction this year and will be followed by deeper reductions until the $74 million total cut is realized. The state Department of Education mailed official aid notices on March 12 that required the district to accept the reduced allocation by March 21.

April Deadline Looms for Final Adoption

The $987 million preliminary budget reflects costs associated with high-poverty urban schools, including in special education and transportation. If the board fails to finalize the budget by April 30, the district will lack authority to levy the 17 percent increase, potentially triggering program cuts and layoffs. Public meeting materials did not specify if any programs possibly face elimination if the preliminary budget fails final adoption.

The board must vote again April 30 to lock in the 17 percent increase that temporarily prevents layoffs for about 26,000 students while the state phases out $74 million in aid.

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Sources

• Jersey City Times, "School Board Votes to Adopt Preliminary 2026-2027 Budget With Tax Hike" (March 27, 2026)
• Jersey City Times, "School Board to Consider 17% Tax Increase" (March 25, 2026)
• NJ Department of Education, Official State Aid Notice (March 12, 2026)
• NJ Spotlight, “School districts say historic aid little help in fiscal ‘perfect storm‘” (March 18, 2026)
• Hudson County View, "Jersey City School Board Approves Nearly 20% Tax Increase" (March 20, 2025)
• Hudson County View, "JCBOE Approves 2025-26 Budget With 6% Levy Increase," (May 1, 2025)
• Jersey City Board of Education, Official Meeting Notice (March 27, 2026)
• Jersey City Board of Education, Budget Caucus Agenda (March 24, 2026)
• NJ.com, "Why School Taxes Are Skyrocketing in NJ's Biggest Cities" (March 28, 2026)
• NJ.com, "These School Districts Are Losing the Most State Aid" (March 26, 2026)