“This is by far the hardest budget I’ve had to put together.”
The Gloucester County Board of Supervisors met Monday evening in the colonial courthouse to hear County Administrator Carol Steele’s proposed budget for fiscal year 2026, which includes a general fund expenditure of roughly $88 million (2 percent higher than FY25 amended budget) and a tax increase of 4.3 cents.
“There is no perfect answer,” said Steele at the beginning of her presentation. “There is no pleasing everybody.”
The FY26 proposed budget provides for the following:
—A 3 percent cost-of-living adjustment for county employees, partially state-funded ($837,907);
—An additional 6 percent state-funded increase for dispatchers ($51,115);
—One new position in the Gloucester County Sheriff’s Office ($93,741);
—Partial implementation of recommendations of a salary study ($690,000);
—Selective staff career ladder increases ($73,311);
—Health insurance increase of 12.5 percent ($634,714); and
—Increase in compensation for the Board of Supervisors ($600 increase for each member).
While making the budget, Steele already implemented her proposed cuts, which includes denying requests. The board can always add these requests and other cuts back into the budget if they so choose.
“Even with making those cuts, we are still looking at a requested 4.3-cent tax increase,” said Steele.
Other budgetary items include level funding for Gloucester County Public Schools, approximately 50 percent of estimated salary implementation costs, level support for existing external agencies and partners, support of fire and rescue and over $1.2 million in revenue reductions due to tax relief.
“We have a lack of funds for dire economic development,” said Steele when discussing capital funds. Development can include incentives, land acquisition, grant matches and more. “We don’t have money set aside to help with that.”
The county also has a tendency to rely on grants to completely or partially fund capital projects. Another problem the county faces is continually postponing funds for services and facilities related to quality-of-life.
“I’m hoping that we can address how we manage our funds,” said Steele, “so that we provide a more stable budget and pick up on best management practices that we are not doing at this time.”
When looking at the projected revenue for FY26, it incorporates $2.4 million in real estate revenue generated from the proposed 4.3-cent tax increase. Without this increase, real estate revenue is projected to decline in FY26 due to higher tax relief and a 0.06 percent growth on assessments.
“We have the slowest growth we’ve had since 2013,” said Steele.
General Fund expenditures
The county’s top five expenditures include the schools, sheriff’s office and jail, fire and rescue, debt service and capital improvements, which adds up to 69 percent of the budget.
In the Facility Maintenance Repair and Replacement budget, an allocation of $949,495 has been proposed. Other requested projects, totaling $670,342, have not been included in the budget.
A new grant fund is also proposed for the budget. All grants and special programs with external dedicated revenue sources would be placed in this fund. A total of $396,418 in the general fund is proposed to be transferred in this fund to support grant-funded initiatives. Grants that the county receives for projects sometimes require a matching contribution.
For the schools, level funding of approximately $30.4 million is proposed. About $33.6 million of the general fund is proposed to support school operations and the debt service. Superintendent of Schools Dr. Anthony Vladu has requested $495,729 in additional funding.
“My hope is that they can make do with the level funding because it’s a large amount,” said Steele.
Other expenditures the general fund is proposed to support include Gloucester County Department of Social Services ($2.4 million) and Children Services Act ($788,154).
Steele also presented two options for the board to consider for building a new Gloucester Volunteer Fire and Rescue Station 1. The project will cost approximately $17.3 million. Construction may begin as soon as the late fall or early next calendar year.
The first option would include a half penny increase in FY27 and again in FY28. The other option would be to postpone the tax increase until FY28, but the project would cost approximately $270,000 more.
Other expenditures include $29 million towards the capital fund and $8 million for the utilities fund.
The board is scheduled to hold a budget work session on Monday at the colonial courthouse. The board will hold a town hall meeting on March 26 at the T.C. Walker Education Center to provide residents and opportunity to share their comments and ask questions about the proposed budget. Both meetings will begin at 6 p.m.