Mercer County Executive Dan Benson has proposed a $430 million budget that aims to balance rising costs, federal funding cuts and continued investment in infrastructure, public safety and economic development.
Benson delivered his 2026 budget address March 26 to the Board of County Commissioners, outlining a spending plan shaped by escalating healthcare expenses, increased demands on county services and reduced federal support.
The proposal calls for a 6% spending increase while slightly lowering the county tax rate, and prioritizes funding for education partners, public safety agencies and employee healthcare — three areas that together account for more than 73% of the budget increase.
Before outlining the budget, Benson briefly acknowledged the recent deaths of two former county officials — Sheriff Gil Lugossy and Commissioner Keith Hamilton. He called them dedicated public servants and noting their decades of service to Mercer County.
The proposed budget totals approximately $430 million, up from about $403.5 million in 2025, representing just over a 6% increase.
Despite the increase, the county tax rate would decrease slightly to 51 cents per $100 of assessed property value, down from 52 cents last year.
For a home assessed at $300,000, the county portion of the tax bill would decrease by about $30 annually under the proposed rate, falling from roughly $1,560 to $1,530.
Benson said the reduction reflects rising property values and economic development across the county, though he cautioned it remains too early to determine how the change will affect municipal tax bills.
The overall impact on residents’ will vary depending on municipal and school taxes, as well as changes in property assessments.
Benson said the primary pressures shaping the budget are largely outside of the county’s control and fall into three main categories.
The first is increased support for affiliated institutions, including Mercer County Community College and the Special Services School District, which together will receive an additional $3.27 million.
Those institutions are facing rising operating costs while adapting to changes in enrollment and workforce demands.
The community college, for example, is expanding career and technical education programs, including a mobile biotechnology lab developed in partnership with Johnson & Johnson to help train students for jobs in the life sciences sector.
The Special Services School District, which serves students whose needs cannot be met in traditional school settings, is also facing enrollment and administrative challenges, prompting closer coordination with county officials to stabilize costs and services.
The second major cost driver is public safety, with an additional $3.9 million allocated to the Prosecutor’s Office, Sheriff’s Office, correctional facilities, youth detention and emergency management operations.
Benson said the investment is aimed at modernizing facilities, strengthening emergency response capabilities and protecting vulnerable populations across the county.
The third and largest cost pressure is employee healthcare.
The county recently transitioned its workforce out of the State Health Benefits Plan, a move officials said reduced projected cost increases from approximately 31% to about 17.5%.
Even with those savings, healthcare costs still rose by $12.3 million and remain a significant driver of overall spending.
Benson said the county is now exploring similar changes for other agencies, including the Mercer County Improvement Authority and the Board of Social Services, in an effort to control long-term costs.
Federal cuts and local impact
In addition to those internal pressures, Benson said federal policy changes are creating new financial challenges for the county.
Mercer expects to lose approximately $6.5 million in funding for its Continuum of Care program, which supports permanent housing for vulnerable residents, along with reductions in public health funding and impacts from cuts to SNAP and Medicaid programs.
Nearly 85,000 Mercer County residents rely on Medicaid, including a large number of children, increasing the potential strain on local healthcare providers and county services as federal support declines.
The loss of federal funding is expected to have ripple effects beyond county government, placing additional pressure on municipalities, nonprofit organizations and healthcare systems that rely on those programs.
Reductions in housing, food assistance and public health funding could increase demand for local services, particularly in communities with higher concentrations of vulnerable residents.
New federal work requirements tied to benefits programs are also expected to increase administrative burdens on county agencies, particularly the Mercer County Office of Training and Employment Services, which will be responsible for expanded eligibility verification.
Benson said the state is expected to provide some support to help offset those impacts, but emphasized that counties will still need to absorb a significant share of the financial strain.
Economic development and infrastructure
At the same time, the budget continues to prioritize investment in economic development and major infrastructure projects across the county.
A central component is the ongoing modernization of Trenton-Mercer Airport, which Benson described as a key asset for regional growth.
The county is completing a new Aircraft Rescue and Fire Fighting facility this fall, the first phase of a broader airport upgrade that is expected to include a new terminal and expanded capacity in the coming years.
Officials said the improvements are intended to enhance the passenger experience, support increased air traffic and strengthen the airport’s role in attracting business investment along the Route 1 corridor and across Mercer County.
Additional projects include renovations at Trenton Thunder Ballpark and upgrades to the CURE Insurance Arena, which is preparing to host a new professional hockey team, the Trenton Ironhawks.
Benson said those projects are part of a broader effort to position Trenton as a destination for sports, entertainment and business activity, while generating economic spillover for surrounding communities.
The county is also advancing redevelopment along the South Broad Street corridor in Trenton, with initial phases expected to begin later this year.
Plans for several major private-sector developments are further evidence of economic momentum.
They include Children’s Hospital of Philadelphia’s planned redevelopment of the former AMC site in Hamilton into a regional medical facility and the continued expansion of BeOne in Hopewell Township, which is expected to bring additional jobs and investment to the area.
Municipal impact and community investment
Beyond large-scale projects, the budget includes a range of investments that directly affect municipalities across Mercer County.
Using American Rescue Plan Act and Community Development Block Grant funding, the county has committed more than $5 million to upgrades at several county libraries, including roof and HVAC improvements.
Additional funding has supported the purchase of wheelchair-accessible senior transportation vehicles for East Windsor, Ewing, West Windsor and Trenton, as well as a public health vehicle for Hamilton.
The county has also funded a backup generator for a firehouse in Hightstown and continues to expand shared services agreements with municipalities, including road resurfacing projects and emergency response coordination.
Benson said the county is also preparing to provide direct support to businesses affected by the closure of the Clarksville Road Bridge in West Windsor through an emergency declaration.
In Trenton, the county is investing more than $1 million in the rehabilitation of the South Ward and Reading senior centers, restoring facilities that had been closed for years and expanding services for older residents.
The county has also established a new Office of Food Security, working with nonprofits including Arm in Arm, TASK and Meals on Wheels to address food access and support families across the region.
Financial recovery and operations
Benson said the county’s ability to make those investments is tied to improvements in its financial condition over the past two years.
When the current administration took office, Benson said, audits and financial statements were overdue, internal records were disorganized and the county was carrying millions of dollars in deferred costs.
He said efforts to improve financial management and stabilize the budget have led to a positive outlook from Moody’s, strengthening the county’s credit position.
That improved outlook has already resulted in lower borrowing costs, including a recent bond issuance that saved nearly $1 million annually compared to projections.
Those savings, Benson said, allow the county to reinvest in infrastructure and capital projects while maintaining fiscal stability.
The administration has also focused on reducing operating costs by consolidating offices into county-owned buildings, including relocating workforce development programs and planning additional moves supported by state funding.
Officials said those changes are expected to reduce long-term leasing costs and improve efficiency.
Business and workforce initiatives
The budget also includes new initiatives aimed at expanding opportunities for local businesses.
Benson said the county is working to increase participation in its Minority Business Program and plans to launch a Minority Contracting Advisory Board to improve access to county contracts for minority-, women- and veteran-owned businesses.
The county is also updating procurement processes to better connect small and local businesses with contracting opportunities, with the goal of strengthening the local business ecosystem and ensuring that county spending supports a broader range of vendors.
Officials said those efforts are part of a broader strategy to align public investment with economic development goals and workforce needs.
Benson acknowledged that economic uncertainty and rising costs will continue to present challenges for the county.
“But I’m not going to sugarcoat it,” Benson said. “There are a lot of challenges that we still have to navigate.”
He said those challenges include rising healthcare costs, ongoing federal policy changes and affordability pressures facing residents.
“But I know one thing,” Benson said. “We are ready for whatever comes next.”
County Executive Dan Benson delivers the 2025 State of the County Address on June 17 to a meeting of the Princeton-Mercer Chamber of Commerce. (File photo.),
