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Mayor Fulop

Mayor Fulop and Councilman Yun Design $250 Million Plan to Fix School Budget Over Next Three Years


Mayor and Councilman Partner on Initiative to Fund Jersey City Schools
Revenue from Abatements, a Tax Levy and Budget Cuts All Part of the Plan

Taking steps to address Jersey City Public School’s $120 million budget gap, Mayor Steven Fulop and Ward D Councilman Michael Yun partnered on the Jersey City School Funding Action Plan they outlined for the next three years. Revenue from tax abatements, a school tax levy, the sale of city-owned property along with the 1% payroll tax already in place, are all part of the $250 million plan.

“Today we are discussing a three-year, $250 million plan to solve the crisis facing the Jersey City schools,” Mayor Fulop began. “It speaks to the seriousness that we view this problem and the commitment we have to making sure that Jersey City kids have the best opportunities possible.”

Mayor Fulop’s school funding plan

Jersey City Public School funding has hit a snag. The district will lose approximately $27 million in state aid this year. That reduction along with the deficit the Board of Education (BOE ) has carried these past five years are all part of the $120 million budget crisis. Mayor Fulop and Councilman Yun’s plan targets a quarter of a billion dollars to be funneled to Jersey City’s schools over the next three years.

Mayor Fulop and Councilman Yun met with stakeholders including parents, teachers and BOE administrators to come up with a strategy to bridge the funding gap. The plan includes new revenues, the 1% payroll tax, and a tax levy increase that comes to about $9 per taxpayer.

“Last year, we implemented the payroll tax and we expect that payroll tax to yield upwards of $80 million dollars this year,” Mayor Fulop said. “The last couple of months the Councilman and I have been meeting with PTA groups and we’ve introduced our budget earlier than ever so that we could make aggressive changes.”

The $250 million plan would restructure the Municipal budget to share the tax abatement shortfall in its entirety for 2020, 2021, and 2022; in total, an estimated $40 million that would go to the schools. The plan would collect $55 million from the city’s payroll tax, $15 million from the sale of the city’s Claremont Avenue property, $2 million from a Board of Education energy audit; $13 million from lead remediation; $5 million from a health benefits audit, $45 million from the Board of Education Operational Efficiency Corrective Action, and $75 million from the Municipal School Tax Levy Adjustment.

“We’ve increased the tax levy by 57% on the municipal side gradually over time and that would equate to a $9 increase per year,” Mayor Fulop said. “We think that’s manageable. We recognize that there are a lot of seniors in Jersey City and a lot of people on a fixed income that are still struggling, so we want to make sure that we’re able to achieve a solution that funds the schools but at the same time takes into account people who are on a fixed income.”

For example, a $25M increase to the 2020-2021 school levy, which can only be set by the schools, will result in a $101 annual increase ($9 a month) to CY 2020 residential taxpayers with an assessment of $440,000, the 2019 average. The BOE’s plans, so far, have been to rely on tax increases to bridge its budget gap, whereas the Mayor’s plan is less reliant on taxpayers.

Ward D Councilman Michael Yun discusses the school budget crisis

“We tried to minimize the tax increase for the people of Jersey City,” Councilman Yun said.

In addition, Mayor Fulop and the City Council approved an audit to review all PILOT (Payment in Lieu of Taxes) agreements. The audit is to ensure the city receives the revenue outlined in each PILOT agreement. Any additional dollars discovered in the audit would go to the BOE. Although it’s possible audit savings could go unrealized, the Mayor’s office said its confident the projections are both achievable and reasonable.

On the downside, the 2020 plan calls for a reduction in police recruiting, fire recruiting, overtime, hiring and pay freezes. Mayor Fulop and Councilman Yun’s JCSFAP plan will give the schools $10 million from city budget cuts that include $2,.2 million in voluntary buyouts, $2 million in overtime reduction, $1.2 million from a pay freeze, $1.17 million from police recruitment reduction, $1.13 from fire recruitment reduction, $1 million in security contract reduction, $800,000 from operational efficiencies, and $500,000 from a health benefit waiver phase out.

“We are making sacrifices, and hard choices,” Mayor Fulop said.

In 2020, the City would move $10 million over to share from abatement revenue. By 2022, $40 million would be shared. Mayor Fulop said he’s committed to 100% sharing of abatement revenue. Jersey City has 178 tax abatements.

“That’s above and beyond anybody’s request,” Mayor Fulop said. “We think its proper to move into the direction of 100% sharing.”

Additional money for the deficit will come in when the city acquires the Claremont Avenue property where the Board of Education’s central office is headquartered, Mayor Fulop said. The city will lease it back to the school board for $1. This would be a solution to getting the BOE some additional dollars, rather than the proposal last year to sell it on the private market.

“There’s no secret we’ve been proactive with the schools,” Mayor Fulop said “We’ve done our best to highlight the fact that the city wants to do its part. We’ve outlined how we’re going to get there. It’s a $1/4 billion commitment. We think that’s meaningful.”

Header:  Mayor Steven Fulop and Ward D Councilman Michael Yun hold a press conference in City Hall Tuesday to outline their plan to fix the school budget deficit.  Photo by Sally Deering

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Mayor Steven

Arts Trust Fund, New Hotel and Redevelopment on Council Agenda


Mayor Steven M. Fulop Wants Voters to Decide Fate of Arts Trust Fund

The Jersey City Council’s Caucus meeting held Monday night included resolutions to convert a 5-story residential building into a boutique hotel, and a redevelopment plan for 37 homes in downtown Jersey City. An hour into the meeting, held in the Efrain Rosario Memorial Caucus Room in City Hall, Mayor Steven M. Fulop stopped by to discuss the Arts Trust initiative that could bring in an estimated $800,000 a year for non-profit arts groups.

Accompanied by Director of Jersey City’s Division of Cultural Affairs Christine Goodman, Mayor Fulop spoke to the Council about the Arts Trust, an arts and culture trust fund similar to the 2016 Open Space Trust Fund. The Arts Trust Fund would support local artists and arts education and would be funded by taxpayers at a maximum rate of $.02 per $100 of assessed property value. Mayor Fulop and Goodman want Jersey City voters to decide ‘yes’ or ‘no’ by placing a Referendum on November’s voting ballot.

“This is something we’ve worked on with the arts council for the better part of two years now,” Mayor Fulop said, “trying to find a solution to support arts and non-profits in Jersey City with long-term sustainable funding. We met with a group of about 80 organizations last Monday.”

Ward D Councilman Michael Yun questioned why the 80 organizations couldn’t fundraise for themselves. Mayor Fulop said that a lot of the organizations don’t have the infrastructure to write the grants

“They spoke about the challenges around that,” Mayor Fulop said, “and they spoke about how difficult it is to find funding. This is a challenge arts groups face around the state and the country. We think it’s important to try and help them out because (the arts) are really crucial to a city that people want to live in.”

Goodman spoke of a “severe and pervasive funding gap that Jersey City non-profits face and have faced for a very long time on the state level”.

“(Jersey City is) on the very bottom of the funding list for counties across the state,” Goodman said. “We have Essex, a comparable county pulling in $5 million in funding. The entire County of Hudson gets $200,000 to share, so there’s a huge funding gap.”

Councilman Yun asked what the arts groups would give to Jersey City in return for the funding.

“The story is what they already do for us, “ Goodman answered. “We have theaters, dance companies, but we’d like to talk about the story of arts education. This funding stream could really help programming that reaches children and young people and exposes them to art at a greater rate than they are being exposed to now.”

Mayor Fulop said the Council would set the exact tax rate with a goal of bringing in $800,000 per year which is comparable to the tax brought in to support the Open Space Trust Fund. Councilman Yun went on to say that although it was a good initiative, his main concern was the many special taxes Jersey City residents already pay.

“We have so many special taxes now, ” Councilman Yun said. “I think it’s not the right thing to do.

Proposing a new hotel

109 Columbus Drive. Photo by Sally Deering

A proposal to change the residential use of a 24-unit building to hotel use for a proposed boutique hotel was brought before the council by Charles Harrington, lawyer for the developer. Harrington said the change from residential use to hotel use would begin the process for a redevelopment plan for 109 Christopher Columbus Drive in Ward E. If the building were to be converted to hotel use, the people living in the five-story building would face eviction once their leases expired.

“If this is passed, what will happen to them?” Council President Joyce E. Watterman asked.

Harrington said that his client would work with the residents to help them relocate.

“My client is looking at that,” Harrington said. “They have rights.”

Councilman Yun said it would be important to speak with local residents and groups like the Van Vorst Park Association to get their input on the conversion.

“I’ve met with the Van Vorst group in the past,” Harrington told the Council.  “We had a similar proposal, and at that time, 4 or 5 years ago, it was really well -received. It’s a boutique hotel concept similar to here.”

Councilman James Solomon of Ward E proposed to spend the next three days meeting with members of the community for their perspective and report back his findings at Thursday night’s Council meeting.

“Before we move forward, I would like to see a financial analysis,” Councilman Lazarro added.

Redevelopment Plan for Laurel Court and Saddlewood Court

Laurel Court, Jersey City. Photo courtesy redfin.com

The Council moved on to a resolution concerning 37 homes in Laurel Court and Saddlewood Court in downtown Jersey City’s Ward E, and the approval for redevelopment and “condemnation of the property” because the homes, built in the 1970s, are dilapidated and outdated. If approved, the homeowners could sell their homes to the developer for profit.

“(The homeowners) met with me in 2018,” Councilman Solomon said, “and 37 out of the 38 homeowners on that lot said this is what they want. That is my understanding of where we’re at.”

Councilman Lavarro said the 37 homeowners are likely motivated by an inability to afford living in Jersey City, but he disapproved of the resolution because it doesn’t justify the need for condemnation of the property. The homes under consideration would be “prized homes in other parts of the city,” he said.

“If you’re going to declare this as an area in need of redevelopment, you have to be able to justify that,” Councilman Lavarro said. “We can go out and mark every home throughout Jersey City as an area in need of redevelopment and make it a home for the affluent and the wealthy. That’s not the way I want to go about redeveloping Jersey City”

Without justification, it seems unlikely the Council will approve redevelopment.

Council President Joyce E. Watterman presided over the Caucus meeting with Councilman at Large Rolando R. Lavarro, Jr., Councilman at Large Daniel Rivera, Ward A Councilwoman Denise Ridley, Ward B Councilwoman Mira Prinz-Arey, Ward C Councilman Richard Boggiano, Ward D Councilman Michael Yun, Ward E Councilman James Solomon and Ward F Councilman Jermaine D. Robinson in attendance.

The next Jersey City Council Meeting will be held on Thursday, Feb. 13, at 6 pm
Council Chambers
Jersey City Hall
280 Grove St, JC
For more info: jerseycitynj.gov

Header: Mayor Steven M. Fulop and Cultural Affairs Director Christine Goodman Address the City Council at its Caucus Meeting on Monday. Photo by Sally Deering

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