Princeton introduces 2026 budget with 7% spending increase, residents urge support for library

Princeton officials introduced a nearly $85 million municipal budget Monday night, March 24, that includes a $5.4 million increase in spending, or nearly 7%, over the current year.

The municipal tax rate is expected to rise by about 1.5 cents, or about 2.87%. When the library tax is included, the increase is about 1.8 cents, or 3.18%, according to Chief Financial Officer Sandra Webb.

“This budget this year has been one of the hardest that we’ve had to put together,” Webb said.

Officials said the budget is driven largely by rising costs across multiple categories, many of which are outside the municipality’s control.

Health insurance costs rose 36% this year, adding about $1.9 million to the budget. Other cost drivers include pensions, utilities, fuel, liability insurance, and legal expenses, all of which are increasing faster than inflation.

Utility costs have also climbed significantly, including expenses tied to the Westminster Choir College campus, which the municipality acquired in 2024.

The budget also reflects staffing changes, including additional firefighters as the town transitions from a largely volunteer fire department to a primarily paid force, along with salary increases tied to union contracts and cost-of-living adjustments, officials said.

Council members said those trends are unlikely to ease in the coming years.

“All of the expense trends … are negative,” one official said.

To offset rising costs, the town is relying on several revenue sources, including increased surplus funds, higher parking revenue, sewer rate adjustments, and hotel taxes.

Officials said the town’s surplus has grown significantly, from just over $25 million to nearly $30 million, providing some financial stability.

Council members cautioned that future budgets will remain challenging as infrastructure needs grow and service demands increase.

The Princeton Council decided last year in closed-door negotiations with Rider University to use eminent domain to take control of the Westminster Choir College campus property for a price tag of $42 million.

Residents advocate for library funding

During the public comment portion of the meeting, residents and library leaders urged council members to maintain strong funding for the Princeton Public Library, describing it as a critical community resource.

In January, the library cut its hours. The council has proposed keeping library funding flat this year. The municipality funds about 75% of the library’s expenses, while donors fund the remaining 25%.

“There are not many organizations in this town that serve residents from one to a hundred,” one speaker said.

Speakers highlighted the library’s broad reach, from early childhood programs to services for seniors, as well as its role in supporting underserved residents and community organizations.

Library trustee Holley Barreto said the facility logged more than 220,000 children’s and teen book checkouts and nearly 900 youth programs with more than 32,000 attendees in 2025.

They also noted that the library has already taken steps to reduce costs, including cutting hours by one hour per day, and warned that additional reductions could affect services.

“Everyone can find something for themselves at the library, whether it’s a service, a workshop, an author talk, the books, the video games, the magazines, newspapers. Our neighbors find community in the groups that the library organizes, knitting groups, book clubs, English language learning, story times for children, the teen advisory board,” said library trustee Stephanie Oster. “These all offer such wonderful, rich service to the community. The library fosters a lifelong love of learning and reading, and these are critically needed today in our society.”

Residents noted that the library, known to many as “Princeton’s living room,” is a central gathering place and one of the few institutions that serve the entire community regardless of income or background.

Library volunteer Helen Heinz urged the council to fully fund the library’s budget.

“We really absolutely need the library to be well funded,” she said. “It’s a crying shame that we had to cut back those hours.”

Resident Scott Sillars said that when he served on the now-disbanded citizen finance advisory committee, the group had questions about the library budget and its foundation. But he also said he was puzzled by the flat funding this year and said the funding should be equitable.

He noted that nonprofit organizations like the Princeton Center for Aging, Sustainable Princeton, and the Arts Council are receiving increases in municipal support this year, while the municipality’s library contribution is being held flat.

No one on the council responded to residents’ comments.

A public hearing on the budget and a final vote are scheduled for April 27.