Former New Jersey Governor and current mayoral candidate Jim McGreevey says Jersey City’s finances are in serious trouble. In a detailed letter submitted to Jersey City Patch, he explained how the city overspent by $73 million over three years and still owes $112 million in Deferred Charges.
He based his claims on audited financial statements from 2021 to 2023 and the 2024 city budget. He pointed out that property taxes went up by 51.4% from 2021 to 2024. Despite this sharp increase, the city still ended up with a $94 million deficit spread across 2021 and 2023.
These kinds of deficits are uncommon in local government. In New Jersey, state law does not allow cities to run a deficit, yet Jersey City has done so. McGreevey explained that this type of financial mismanagement will take years for taxpayers to pay off.
- Jersey City overspent by $73 million and ran deficits totaling $94 million in 2021 and 2023.
- $112 million in delayed payments remains unpaid from past years.
- Former Gov. Jim McGreevey and Councilman James Solomon sharply disagree on the causes and solutions.
How Did It Get This Bad?
McGreevey blamed the problem on poor internal financial controls. He said the city often approves purchases without confirming there’s enough money available. Once the service is delivered or the product is received, the city must legally pay—either now or later. When the city cannot pay immediately, the cost is pushed to future years, and residents eventually cover the bill through higher taxes.
Key findings from audits between 2021 and 2023 include:
- $73 million overspent beyond approved budgets
- Contracts exceeded their budgets by up to 20%
- $100 million in unbudgeted spending was delayed to the following year
- 76% of overtime records were inaccurate
- $219 million in total Deferred Charges since 2018, with $112 million still unpaid as of December 2023
- $3.1 million in overpaid payroll taxes from 2019 that were never returned
- A $600,000 fine from the State Labor Department
- Failure to reconcile the city bank accounts with department records
McGreevey’s Plan to Fix the Budget
To deal with this, McGreevey laid out a detailed plan to restore control over city spending. His main goals include:
- Stabilizing property taxes
- Erasing the $94 million deficit
- Moving from debt to a budget surplus
- Eliminating unnecessary spending
- Improving financial transparency
Specific strategies include:
- Zero-Based Budgeting (ZBB): Each department must justify every expense starting from zero instead of using past budgets as a baseline.
- Spending tied to growth and inflation: To avoid large spending increases unrelated to population or economic changes.
- Public access to financial records: All audits and spending reports will be posted online.
- A centralized Grant Management Office: Staffed with professionals to ensure Jersey City doesn’t lose access to grants, like the $11.5 million Community Development Block Grant, which is at risk due to non-compliance.
He also pointed to several high-cost projects that, in his view, should be reconsidered:
| Project | Cost | Status |
| Centre Pompidou | $58 million | State pulled support in 2024 |
| Loew’s Theatre | Budget rose from $72M to $105M | Ongoing |
| Bayfront Redevelopment | $170 million land acquisition + $64M in tax credits | In progress |
| SciTech Scity | 12.5 acres donated, land value estimated at $18–$40 million | Controversial |
Instead of spending on these projects, McGreevey wants to redirect funds to schools, parks, youth jobs, and street cleanliness.
Solomon Responds, “McGreevey Can’t Talk About Integrity”
Councilman James Solomon, also running for mayor, strongly disagrees with McGreevey’s message. His campaign quickly responded with a sharp statement accusing McGreevey of a long history of misusing public funds.
Solomon’s campaign manager, Stuart Thomas, said, “Jim McGreevey’s career in politics is littered with misuse of government funds… Voters are sick of promises from politicians who have lied and failed them.”
Solomon listed several incidents from McGreevey’s past, including:
- Fired from the Jersey City Employment and Training Program (JCETP) after city audits found millions of dollars unaccounted for or redirected into McGreevey’s nonprofit.
- Received healthcare and a $66,837 pension for just four months of work as a Hudson County attorney while earning a $75,000 salary.
- Charged $75,000 to the state for a trip to Ireland that was mostly personal.
- Used a state helicopter 14 times for personal travel, which cost the state $18,200.
- Pulled $10 million from the state surplus to run ads featuring himself, despite promising not to do so.
Solomon’s Anti-Corruption Plan
Solomon’s platform focuses on fighting corruption and changing how politics works in Jersey City. He argues that “corruption is a tax” residents pay in the form of bad services and higher property taxes.
His plan includes:
1. End Political Favoritism
- Strengthen the city’s ethics code
- Punish nepotism in hiring and contracts
- Create an independent inspector general to investigate city corruption
- Reverse state laws that weakened Jersey City’s rules on political contributions from contractors and developers
2. True Transparency
- Fund local journalism through grants
- Publish public records online automatically
- Stream all city meetings and allow public comment
- Build a public database of all city contracts and bidding details
3. Limit Big Donors’ Influence
- Create a public matching funds program to encourage small donations
- Limit large political donations from developers
- Set caps and eligibility rules for public campaign funds
According to Solomon, over $424,905 in campaign donations from developers and political insiders have already been given to his opponents, including McGreevey. Solomon says he refuses to take money from these groups and will stay independent.
