Cape May County Cuts Budget, Lowers Tax Rate

CAPE MAY COURT HOUSE, N.J. — The Cape May County Board of County Commissioners has unanimously adopted a $223.3 million budget for 2026, reducing overall spending while lowering the county tax rate for property owners.

The spending plan, approved following a public hearing on April 14, totals $223,271,377 — a decrease of about $6.49 million, or 2.8%, from the 2025 budget.

Despite a modest increase in the total tax levy to $167.86 million — roughly $3.29 million more than last year — officials say growth in the county’s ratable base has allowed the tax rate to decline year-over-year.

County leaders pointed to rising property values and continued development as key factors in spreading the tax burden across a larger base, easing the impact on individual taxpayers.

“This budget reflects the values of our Board and our County. We will always prioritize fiscal discipline, transparency, and a commitment to spend taxpayer dollars wisely,” Commissioner Director Leonard C. Desiderio said in a statement. “We reduced overall spending, lowered the tax rate, and remained well under the State’s cap.”

Officials said the budget comes in approximately $1.93 million below the state’s allowable tax levy cap, providing additional financial flexibility while maintaining a conservative approach to spending.

Even with the overall reduction, the budget continues to fund core services, including public safety, public health, and human services. Funding is also maintained for the county’s vocational and special services school districts, as well as social service programs serving vulnerable residents.

Capital investments tied to infrastructure, public safety, and economic development are also included in the plan.

The budget allocates $24 million in surplus funding, up from $21 million in 2025, which officials say helps offset costs and limit the need for additional taxation. Maintaining a strong surplus is viewed as key to long-term financial stability.

County officials also cited diversified revenue sources — including state aid, grants, and shared services agreements — as helping to manage costs. Shared services for dispatch, transportation, and regional programs remain part of the county’s strategy to improve efficiency and reduce duplication.

Healthcare cost controls, including employee contributions and plan management strategies, were also noted as factors in containing expenses.

Desiderio credited Chief Financial Officer Brittany Smith and the county finance team for developing what he described as a responsible and forward-looking budget.

The 2026 budget was introduced March 10 before undergoing the required public process, culminating in Tuesday’s public hearing and final vote.

Officials said the adopted plan positions Cape May County to maintain services while preparing for future growth.