In a letter to the editor, former Gov. McGreevey calls on Jersey City to get its budget act together but offers no real concrete solutions as it relates to the operating budgets — either this year or long term. I would like to address issues he raised. First, let’s get down to basics. There are only two ways to approach a budget: revenue and expenses. As it relates to the Jersey City Board of Education, revenue is the key one, and Jersey City has been sabotaged politically by the state for several years.

McGreevey is always quick to call out the Jersey City school system, but the increase in the school portion of the budget paid by the city taxpayers and rent payers lies directly in the punitive state aid funding formula that has cut our state aid since 2020 by 14.6%. This formula was championed by and directly benefits many of Jim’s out-of-town benefactors, some who attended his announcement last November.

The draconian cuts, which will penalize Jersey City by over a quarter of a billion dollars in FY 25 alone, is, in great part, for generating hundreds of millions in new state income tax, corporate business tax and retail sales tax for the state of New Jersey from development that occurred. It fails to recognize the level of need that continues to persist for our inner-city students.

An analysis of the last six years shows that state aid for the Jersey City school has been reduced by $285 million, or a negative 70%, while Union City has increased by $37 million, or 20%, and Paterson’s has increased by $128 million, or 30%!

Does it make any logical sense that Union City gets almost double the amount of state school aid that Jersey City does? That Paterson receives close to four times the state aid? The school aid formula needs to be simplified and one way I suggest, could be to base it solely on the number of students eligible annually for the free school lunch.

Going forward, any municipality receiving state school aid must, within any PILOT (tax abatement) agreement, be required to allocate on an annual basis to the board of education its pro rata share of the PILOT based on the percentage of the local tax levy that year. This was done by the city recently in the case of the planned Bayfront development.

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