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By Jerramiah T. Healy Photograph by Roy Gumpel
We are officially in a recession. These are the words no one has wanted to hear, but the current economic situation is self-evident. Companies are closing across the state and the nation, our jobless numbers are escalating, people are losing their homes, and many individuals are struggling every day to make ends meet.
The difficult time facing families and individuals throughout the state and the country is also an acute issue for municipal and state governments as they plan their budgets for the upcoming fiscal year. Gov. Jon Corzine has already projected a $1.2 billion deficit, and state aid to municipalities has been reduced. On a local level, we have to consider what can be cut without placing an additional burden on residents during these tough economic times and without sacrificing important municipal services and programs.
In Jersey City we have asked all department directors to cut overtime and to reduce spending. Even small steps like waiting a few days to open the city’s ice rink saved thousands of dollars. In total, we expect to save hundreds of thousands by reducing overtime costs throughout the city.
Despite the bleak global economic condition, Jersey City is fortunate to have a strategic geographic location with its proximity to New York City and a public transportation network that includes PATH trains, ferries, the Hudson-Bergen Light Rail, and buses, as well as being the economic engine driving the state’s economy.
Due to this, Jersey City has withstood much of the downturn in the real estate market. While we are seeing some of the bigger residential projects turn from condos to rentals, others continue to move forward at a steady pace. We continue to break ground on developments and cut ribbons on finished projects in what can only be a testament to Jersey City’s vibrancy. However, that being said, some of our older neighborhoods off the waterfront are dealing with foreclosures.
Through a $2.1 million Neighborhood Stabilization Program grant from the U.S. Department of Housing and Urban Development (HUD), Jersey City is drafting a plan to remediate and restore areas hardest hit by foreclosures. Additionally, our Division of Community Development will continue its foreclosure prevention measures which include outreach to the community about what homeownership means, credit readiness, and the danger of predatory lending.
Jersey City is also called Wall Street West and is home to 271 financial services firms. As everyone knows, this industry was the first and perhaps the hardest hit by the downturn in the economy. My administration has been working to address whatever impact this will have on Jersey City in a number of ways.
In addition to senior staff members from my office working with the Governor’s Office of Economic Growth and the New Jersey Economic Development Authority, we have also been in talks with the business entities in our city to understand the concerns facing them. We have continued to push for business retention and incentive programs at the state level, and our Economic Development Corporation continues to market the city for business and commercial investment.
While no one will argue that we are in the midst of challenging economic times, we believe that in Jersey City we have the ability, the ingenuity, and the inherent attributes to fight through this storm and to continue our economic growth.
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