On February 4, 2026, Mayor James Solomon released a document titled A Report to the People of Jersey City, outlining what it calls a “full-blown financial crisis.” The report projects a $250 million deficit for 2026, which it states amounts to roughly 28 percent of the city’s annual operating budget.
The document states the situation “was not inevitable” and “was not caused by forces beyond anyone’s control or an act of God.” It attributes the deficit to decisions made during a period of prosperity and identifies former Mayor Steven Fulop as responsible. Former Mayor Steven “Steen” Fulop disputes those claims.
Solomon, who took office on January 15, said after releasing the report, “Yesterday, we delivered a report on the state of our city’s finances. The picture is even worse than we thought. We have tough decisions ahead, and I believe in leading by example.”
- Jersey City is confronting a $250 million 2026 budget deficit, equal to 28% of its operating budget and roughly six times larger than New York City’s deficit.
- Mayor James Solomon will take a $1 salary in 2026, blaming the crisis on fiscal decisions made under former Mayor Steven Fulop.
- The city is launching ward-by-ward community budget meetings and assembling an independent expert team to craft a four-year recovery plan while projecting $30 million in savings from a new health insurance administrator.
Credit Downgrades and Budget Comparisons
The administration states the deficit equals 28 percent of Jersey City’s operating expenses and is nearly six times larger than New York City’s budget deficit.
In recent years, Moody’s, S&P, and Fitch each downgraded Jersey City’s credit rating. At the end of 2025, Moody’s described the city as a “financially struggling city with deteriorating liquidity profile.”
Spending Decisions Identified as Drivers of the Gap
The February 4 report lists eleven drivers behind the projected shortfall. It alleges that nearly 70 percent—approximately $100 million—of federal COVID relief funds were used primarily to fund a one-time property tax cut during the 2021 election year.
The report also states that the prior administration emptied the city’s entire rainy-day fund and sold nearly 1,000 city-owned properties for at least $100 million.
Additional items cited include $52 million in unpaid healthcare bills from 2024 and 2025 and $15 million in what the report calls “accounting gimmicks” used to create fictional revenue. It further references $20 million paid to consultants for a museum project that did not materialize.
Mayor to Accept $1 Salary in 2026
One day after the report’s publication, Solomon announced he would take a $1 salary for all of 2026. A spokesperson for his office stated that former Mayor Fulop’s salary increased to $245,000 during his tenure.
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Solomon said he did not run for mayor for personal gain and stated that during difficult periods, leadership requires setting an example.
Administrative Response and Financial Recovery Plan
The administration has already switched the city’s health insurance administrator. Officials project that the change will produce approximately $30 million in savings in 2026.
A team of independent budget experts has been assembled to prepare a four-year financial recovery plan for Jersey City.
Community Meetings Scheduled in All Six Wards
Following the report’s release, Solomon announced that he will work with members of the Jersey City Municipal Council to hold a series of community meetings in each of the city’s six wards. The administration said the meetings are intended to involve residents and community leaders in discussion about the budget situation.
The first phase begins Saturday, February 14. These sessions will include community leaders, neighborhood association representatives, Special Improvement District directors, faith leaders, and elected officials. Attendance will be capped at 40 participants per meeting, and each session will be limited to 90 minutes. The city said a facilitated dialogue model will be used to guide discussion.
Beginning March 5 in Ward A, meetings will open to all residents in every ward. Registration will be available in advance through Eventbrite, and the city will offer phone-in registration assistance for seniors and residents needing support.
All meetings will begin at 7:00 p.m. and will be livestreamed. The tentative schedule is:
Ward A — March 5
Ward B — March 10
Ward C — March 16
Ward D — March 18
Ward E — March 24
Ward F — March 26
