Jersey City's $255 million budget deficit causes war of words between current and former mayors

Many Jersey City, New Jersey, residents were preparing themselves for a possible 20% property tax increase.

But on Wednesday, Mayor James Solomon postponed the vote, saying he's looking at cutting city services instead.

Solomon vs. Fulop

Solomon spoke directly to residents on social media.

"The 20% increase will be painful and I will not pretend otherwise," Solomon said.

The progressive Democrat put the blame for the proposed hike at the feet of former Mayor Steven Fulop, claiming his administration left the city with a $255 million budget deficit.

"The last mayor paid bills on the city's credit card and we are stuck with the bill," Solomon said.

In a statement, Fulop said he disagrees and added, "Had I chosen to run for reelection, we would have introduced another budget with no tax increase for Jersey City residents, as we did nearly every year."

Fulop also pointed out Solomon was a City Council member for eight years and "voted for virtually every contract and resolution that came before the council with regards to what he references here."

Solomon said he's asking Trenton and Gov. Mikie Sherrill for $120 million.

Late Wednesday afternoon, Solomon announced he's postponing the vote on the property tax hike until next week and will look at other options, including cuts to city services.

"I recognize this tax increase is more than numbers, residents who are scared they'll be pushed out, and that this is too much, too fast for household finances to keep up with," Solomon said. "Not going to sugarcoat it -- this is going to be painful for residents either way."

Solomon is calling for four town hall meetings in July to hear from residents.

Homeowners feel stuck in the middle

Emma Rosenthal told CBS News New York she and her husband bought a property in Jersey City to avoid New York City's high prices, but now she's potentially facing a huge property tax hike.

"Personally, as a homeowner, there is a downside because it's more money out of our pocket," Rosenthal said.

However, she said she understands.

"I do think there is a good thing that there is an attempt to balance the budget," Rosenthal said.

Other property owners said they feel helpless.

"At this point, I mean, we're living here and I am not moving or anything," Beth Goodman said.

E.J. Paras, a 30-year-old renter, said any hike will likely be passed down and dashes hopes of owning property.

"Twenty percent tax increase potentially, you know, I feel like it throws that dream out the window, rightly pushes down the field a little longer," Paras said.