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Mayor James Solomon says Jersey City must accept a reduced property tax increase or face mass layoffs

Jersey City Mayor James Solomon is now lowering a proposed tax hike from 20% to 15%, but many residents says it's still a painful pill to swallow.

On Wednesday night, City Council members will decide whether to vote for the increase.

No increase would mean mass layoffs, Solomon says

Solomon told CBS News New York's Christine Sloan that despite getting $120 million from the state, he's asking council members to approve the reduced tax hike, adding no increase would mean mass layoffs as the city deals with a $255 million budget deficit.

"I am not willing to lay off our police officers. We have to make sure our public safety remains safe," Solomon said. "Even at 15% there are painful cuts. We've cut our park maintenance contract so our parks, unfortunately, are not going to get the same amount of attention. We've cut the Via [Transportation] contract, which provides low-cost transportation."

The Democrat said the state help includes $15 million in cash assistance and a $105 million loan to be paid back over time.

Sloan asked Solomon if future taxpayers will feel the pain.

"We are building responsible long-term models. That is not what Jersey City never had when it came to its budget," Solomon said.

Solomon also said the city is cutting back on Fourth of July celebration spending and relying mostly on philanthropy. Though many residents have blasted the idea of such a steep property tax hike, some told Sloan on Wednesday they understand the situation.

"I would definitely prefer to not pay 15% more in taxes every year, but it is what it is. Things cost what they cost," resident Chris Christomilakes said.

"I am willing to pay a little if I have to, just based off of convenience," Pascal Gabo added.

The budget has to be introduced on July 15 and approved by August.  

Solomon-Fulop feud continues to simmer

The mayor continues to blame former Mayor Steven Fulop for the budget crisis.

"He was running for governor. What he wanted to do was not cut services or raise taxes, so he just put the bills on the credit cards," Solomon said.

Sloan responded by asking, "Former Mayor Fulop says you are playing politics. He says that you were a City Council member during the period when all of this stuff was done. What is your response to that?"

"Absolutely, as a council member, I voted against every budget," Solomon said.

The proposed tax increase drew criticism from residents at recent meetings and has prompted Fulop to say it wouldn't have happened under his watch.

Solomon said he welcomes an investigation into the previous budget.

Fulop has previously disagreed with the current mayor's assessment of the budget trouble. CBS News New York reached out to him again and Fulop said we can rely on the statement he released in the past.

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