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

Dear reader: For the cost of a "tall" drip coffee at Starbucks, you can support local journalism! Please consider signing up for a recurring monthly payment of $2.99. Thank you!

Sign up and support Jersey City Times!

Parents Plea for Funding as Schools

Parents Plea for Funding as Schools Face Massive Budget Gap

Jersey City School Board Meeting Gets Emotional as Parents and Teachers Demand Action

To Fix Budget Deficit

Ninety-nine Jersey City residents—mostly moms, dads and teachers—signed up to speak at the Jan. 30 Jersey City School Board meeting at PS 41 (Fred W. Martin Center for the Arts) to address the $150 million budget gap. Many of the parents shared personal stories of the negative effects underfunding has had on their children’s education, and after they addressed the board, the parents ended their speeches with the battle cry, “Fund our schools!”

Parent Jenny Pu speaks out against the under-funding of Jersey City schools.

“I’m a parent at PS 37,” Jenny Pu said, addressing the board. “Tonight, you’re going to hear what underfunding means for parents in every part of the city. But beneath each story is a question you as the Jersey City Board of Education will get to answer in the coming weeks: How much do you value our children?”

The Jersey City Board of Education continues to grapple with an estimated $150 million deficit for the 2020-2021 fiscal year. Last year, the district lost $27 million in state aid, which was replaced with a new Jersey City payroll tax. Last year, the Jersey City school board sued the state over the loss of aid and to stop an anticipated $180 million in funding cuts over the next several years.

The PS 41 auditorium filled to capacity with parents lining up to speak at the public comment section of the meeting. Many held “Fund Our School” signs as Jersey City mom Rya Cawley stepped up and spoke about building issues at PS No. 39 where her son Taylor attended Pre-K. On the first day of school, Cawley remembers the toilets in the Pre-K bathroom were broken, so teachers had to shuttle kids to the main bathroom where there was only one working sink.

“I spoke to parents who had children in that school for many years, and they said that sometimes the school can’t afford water so they send letters home to please send their children to school with bottled water,” Cawley said. “Let’s give our children a sense of dignity where they can go in and drink clean water and wash their hands with clean water. Fund our schools.”

Special Education teacher Maria Enriquez speaks up for teacher’s aides

Special Ed Teacher Maria Enriquez works with students in the Leaps and Bounds program at Ferris High School, where she relies on teachers’ aides to help students who have cognitive impairments and who need one-on-one assistance to go to the bathroom and perform everyday tasks. Enriquez’s biggest concern was losing teachers’ aides.

“As you decide what to cut and where to cut your budget, please consider our aides,” Enriquez says. “We need them. The students need them.”

Jersey City mom Emily Peco reminded the board of the importance of standing up for its constituents with disabilities. She said it doesn’t matter whether a child has physical challenges, behavioral challenges, cognitive challenges, speech challenges or any other special needs, the experience of living with a disability “permeates a child’s life and their parents’ life”.

“I’ve heard countless parents share their struggles with our special-education department,” Peco told the board. “We are exhausted. Money will fix this. Each of you will need to be brave enough to do the right thing. Integrity cannot be quantified. Show your priorities. You know what’s worse to increasing taxes? Closing schools. Your constituents are here and we are asking you to fund our schools.”

Other Matters Discussed

During the meeting, Superintendent Franklin Walker updated the parents on the Wuhan Coronavirus. According to the World Health Organization, the Wuhan Coronavirus is a global health emergency that has claimed the lives of more than 300 people in China and has spread to at least 23 countries including the U.S.  Superintendent Walker assured parents there was no need for alarm.

“You likely have seen or read reports about the new Coronavirus that originated in Wuhan, China,” Walker said to the packed auditorium. “There were a number of calls that have been made to the Jersey City public schools questioning whether or not cases have been identified. I need to let you know there are no suspected cases or confirmed cases of the coronavirus in New Jersey. Our school nurses have been in communication with the Hudson County Regional Health Commission to monitor the situation and will follow their recommendations.”

Superintendent Walker also introduced eight new principals assigned to Jersey City schools for the 2019-2020 school year.

At the meeting, all school board members including President Lorenzo Richardson, Vice President Gina Verdibello, Mussab Ali, Alexander Hamilton, Gerald Lyons, Marilyn Roman, Lekendrick Shaw, Joan Terell-Paige, and Noemi Velazquez were in attendance.

Header: Jersey City School Board meeting held Thursday evening at PS No. 41

Dear reader: For the cost of a "tall" drip coffee at Starbucks, you can support local journalism! Please consider signing up for a recurring monthly payment of $2.99. Thank you!

Sign up and support Jersey City Times!