Mayor Solomon Proposes First-Ever Law To Share Pilot Revenue With Jersey City Public Schools
MAYOR SOLOMON PROPOSES FIRST-EVER LAW TO SHARE PILOT REVENUE WITH JERSEY CITY PUBLIC SCHOOLS
New Ordinance Would Permanently Dedicate 10% of PILOT Revenue to an Education Infrastructure Capital Fund
JERSEY CITY, NJ (June 5, 2026) — Mayor James Solomon today proposed a landmark ordinance as part of his ‘Building for Working Families’ housing agenda that would permanently dedicate 10% of the City’s Payment in Lieu of Taxes (PILOT) revenues to a new Capital Fund for Jersey City public schools — making him the first mayor in Jersey City history to actually share PILOT revenue with the Board of Education (BOE). The proposal establishes a new approach to PILOT revenue that ensures development revenue contributes directly to delivering updated facilities for Jersey City public school students and educators.
“When used responsibly, PILOTs can deliver affordable housing and benefits for the entire Jersey City community, including our schools,” said Mayor James Solomon. “But our city has seen what happens when PILOTs are corrupted, tax breaks were given out in return for luxury-only developments and promised benefits to the community that never broke ground. We are going to fundamentally rewrite how PILOTs are used as we aggressively pursue our agenda of ‘Building for Working Families.’”
What the Ordinance Does
The ordinance would establish a new Education Infrastructure Capital Fund for Jersey City Board of Education (JCBOE) capital projects, funded by 10% of the annual service charge payments from all residential PILOTs approved in the last five years that have not started payment and all that follow. Eligible uses are school-related capital projects with a useful life of five years or more, as defined under New Jersey School Bond Law.
The Trust Fund would be jointly governed by a committee composed of:
- The Mayor’s designee and a senior municipal official appointed by the Mayor
A Board of Education representative and the School District Superintendent (or designee).
- An independent Jersey City resident — intended to be a parent or youth advocate — appointed by the Mayor
- A non-voting City Council liaison
This joint governance structure between the City and the JCBOE is designed to create shared accountability and ensure that school facility investments reflect the actual needs of Jersey City students and families.
Recommendations from the committee will go back to the City Council for approval.
Real Dollars for Jersey City Schools
The Canal Crossing PILOT — the first housing agreement fully negotiated under the Solomon Administration ‘Building for Working Families’ agenda — would alone contribute over $7 million to the Education Infrastructure Capital Fund over the life of the agreement. Under current law, schools would receive $0 from that same agreement.
The Canal Crossing Project is made possible by the PILOT agreement that models what ‘Building for Working Families’ looks like under the Solomon Administration: maximum affordable homes, living wages for labor, and real benefits for the surrounding community.
PILOTs: A Critical Tool for Affordable Housing and the City’s Fiscal Future
PILOT agreements are Jersey City’s most powerful tool for making affordable housing financially feasible and for generating revenue the city needs to address its fiscal challenges. A PILOT allows developers to pay a negotiated annual service charge instead of standard property taxes. These agreements make affordable and mixed-income projects viable that would otherwise not be built.
The problem was never the tool. Under the previous administration, PILOTs were handed out as giveaways to politically connected developers for luxury-only towers that didn’t need the subsidy and gave little back to the community. Fiscal analyses were predetermined, and the deals were closed behind closed doors by officials who took developer money.
Used honestly, PILOTs generate revenue for city services, catalyze affordable housing construction, and fund community investments. Under the Solomon Administration, every PILOT application will be subject to a rigorous, independent fiscal analysis with no predetermined outcomes.
Next Steps
The Solomon Administration will seek City Council approval for both the school funding ordinance and the Canal Crossing financial agreement at the June City Council meetings, with first reading on June 10 and second reading on June 24.
--
Nathaniel Styer
Communications Director | City of Jersey City
[email protected]