Newark council introduces $970.18 million 2025 budget; approves bond rollover, state loans and emergency appropriation

The Newark Municipal Council on Thursday, Aug. 28, 2025, introduced the city's 2025 municipal budget of $970,180,790.27 and approved a package of short- and medium-term financing moves intended to close a budget gap, including rolling over maturing bond anticipation notes, amending transitional aid loan terms and adopting a first-reading ordinance to allow a special emergency appropriation for severance liability.

The administration presented the budget and financing actions during a special meeting called under New Jersey open-meeting notice requirements. Acting Finance Director Benjamin Guzman told the council the bond measure "is to authorize the sale of bond anticipation notes" so outstanding notes that mature in September can be rolled over. Business Administrator Eric Pennington introduced the budget and described two related transitional-aid measures, saying the city would "rescind last year's" agreement, defer repayment of $22,000,000 until 2027 and add an additional $30,000,000 state loan this year as a short-term "bridge" loan.

Why it matters: Council members and residents pressed the administration about the tax and service impacts of the financing plan. The municipal portion of the city's tax rate increased roughly 9% in Pennington's description; Pennington said the combined overall tax change, when county and school levies are included, is closer to "about 5, 5 and a half percent." The administration said the principal drivers of the shortfall include an equalization deficiency tied to property valuation ratios and higher health-care and collective-bargaining costs. Several speakers at public comment also criticized city spending and tax abatements and raised sanitation and housing concerns.

Most important facts and council action

- Budget introduction: Pennington told the council, "The administration presents to…