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Mayor Fulop

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

February 19, 2020/in header, Latest News, News /by Sally Deering

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

News Briefs

Hudson County Community College has been named the recipient of a one-year, $850,000 investment from the JPMorgan Chase. The investment will be utilized for a program the College developed to address the challenges of the economic crisis in Hudson County that were brought about by the COVID-19 pandemic. The program is designed to provide lasting improvement in the County’s workforce ecosystem.

Mayor Steven Fulop and the Jersey City Economic Development Corporation (JCEDC) have launched the latest round of emergency funding to provide over $2.5 million in direct aid and support to Jersey City’s neediest residents, regardless of immigration status. The city will partner with  York Street, Women Rising, United Way, and Puertorriqueños Asociados for Community Organization (PACO). 

Darius Evans, age 45, of Jersey City was arrested  on Monday by The Hudson County Prosecutor’s Office in connection with the stabbing death of 39-year-old Tyrone Haskins early New Year’s morning. The charges include Murder and two counts of Possession of a Weapon for Unlawful Purposes.

Mayor Steven Fulop is joining forces with Uber to announce a new agreement that will expand residents’ access to COVID-19 vaccinations with free Uber rides to and from Jersey City vaccination sites. Phase 1B includes essential frontline workers and seniors 75 years old and over.

According to a report in the Jersey Journal, Jersey City received its first shipment of COVID-19 vaccines Monday and plans to begin vaccinating eligible residents later this week at the Mary McLeod Bethune Center.

The federal Paycheck Protection Program, which offers businesses loans that can be forgivable, reopened on January 11th. The revised program focuses first on underserved borrowers – minority- and women-owned businesses.

Jersey Art Exchange (JAX) has merged with Art House Productions effective January 2021 to help improve and expand arts education and opportunities for the Jersey City community. JAX Founder Jacqueline Arias will remain Director of the program at Art House.

Christmas trees will be collected citywide every Wednesday night throughout the month of January. Pickup resumes this Wednesday January 13th.

Keep abreast of Jersey City Covid-19 statistics here.

Governor Murphy has launched a “Covid Transparency Website” where New Jerseyans can track state expenditures related to Covid.  Go here.

 

 

 

 

 

 

 

 

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