Passaic County introduces 2026 budget on first reading, cites rising health-care costs and preserves services

Passaic County officials presented a budget framework March 24 that administrators said would preserve essential services while responding to rising health-care and prescription costs.

The county administrator, introducing the 2026 budget, told commissioners the year’s presentation was “the most challenging” of his four budget cycles but said the county’s strong financial foundations let officials present “a responsible budget that is maintaining essential services vital to our residents.” The board voted unanimously to introduce the budget on first reading and set a public hearing for April 28, 2026, at 5:30 p.m. at 401 Grand Street.

Why it matters: presenters warned that sharp increases in group hospitalization and prescription costs — which the administration described as a major driver of local fiscal stress — are squeezing county budgets across New Jersey. The presentation said the county lost $3.17 million in federal funding during the prior year and that a federal shutdown disrupted SNAP benefits for tens of thousands of residents; county officials said they deployed reserves and emergency assistance to help residents during those disruptions.

Key budget figures and priorities: CFO Rich Cahill showed a 10-year trend of declining county tax rate and stable property values, noting the county’s tax rate has fallen materially over the past decade. Officials described a roughly $120 million year-end fund-balance figure and explained an accounting reserve entry tied to unreceived grant funds that produced an apparent drop in calendar year 2025. Administrators emphasized reserves as an active tool — the presentation said the county’s snow-removal reserve fell from about $4.1 million to $1.9 million following heavy storms this year.

Containing labor and benefit costs: the proposed 2026 budget projects a 1% increase in salaries and wages across departments. The county administrator described ongoing negotiations with 23 bargaining units and vacancy management as tools to limit salary growth while preserving service levels. On benefits, officials said the county is pursuing multiple approaches — limiting eligibility for its costliest health plan in certain units, incentivizing generic prescriptions, leveraging its prescription benefit manager (CVS Caremark), and instituting pre-authorization for some high-cost drugs — to contain runaway prescription spending.

Services covered: officials highlighted $26 million in funding that will support Passaic County Technical Institute and Passaic County Community College, described public-safety spending (presenters cited roughly a quarter of the budget directed to public safety), and noted more than $42 million allocated to senior services, including 224,819 Meals on Wheels deliveries last year and more than 92,000 transit rides for seniors.

Infrastructure and programs: the presentation previewed capital and program investments including park projects (Garrett Mountain courts, Dundy Island phase two), the Highlands Rail Trail planning, a veterans-and-senior housing complex with an active wait list, and the PT County Move on-demand transit service, which the administration said generated more than 50,000 rides in its first eight months and averaged roughly 1,800 rides per week in March.

Votes at a glance: the board adopted a cap-resolution step required to exceed the index rate and then introduced the FY 2026 budget on first reading (public hearing April 28). The board also opened and closed public hearings and unanimously adopted two bond ordinances authorizing capital and equipment improvements for county institutions.

What’s next: the board scheduled a public hearing on the proposed budget for April 28, 2026, at 5:30 p.m. at 401 Grand Street. Administrators said they will continue negotiations with unions and pursue provider partnerships and benefit design changes to lessen health-care cost pressures.