Paterson will receive a record $76.2 million in transitional aid from the State of New Jersey, officials announced Wednesday, clearing a major hurdle to adopting the long-delayed 2026 municipal budget.
What this means for residents
City leaders say the funding will help preserve core services and limit pressure on local property taxes after months of budget uncertainty. The aid was confirmed in a joint statement by Sen. Benjie Wimberly and Assemblymen Al Abdelaziz and Kenyatta Stewart, who thanked Gov. Mikie Sherrill and Department of Community Affairs Commissioner Jacquelyn Suarez for approving the assistance.
The allocation answers a central question that stalled introduction of Paterson’s 2026 municipal budget: how much transitional aid the state would supply. City officials had requested $78 million but will receive $76.2 million.
Financial pressures and avoided cuts
City Business Administrator Dan Golabek and council members had flagged growing fiscal stress in recent municipal meetings. One of the largest drivers was an increase in health insurance costs, which city documents and officials say rose from about $48 million to roughly $72 million.
"We are grateful to Governor Mikie Sherrill and DCA Commissioner Jacquelyn Suarez for approving $76.2 million in transitional aid for the City of Paterson," the legislators said in their joint statement.
The legislators said the funding helps Paterson avoid "extraordinarily difficult budget decisions," including potential layoffs affecting police officers, firefighters, Department of Public Works employees and other municipal workers who deliver essential services.
- Approved aid: $76.2 million
- Amount requested: $78 million
- State FY2027 budget: $60.7 billion (signed by Gov. Sherrill)
Next steps for the city
With the transitional aid confirmed, city officials can move to finalize and introduce the 2026 municipal budget. The timing and details of any remaining adjustments, including whether some contingency measures remain necessary, will be determined as the budget is completed and presented to the Municipal Council.
| Item | Amount |
|---|---|
| Transitional aid requested | $78,000,000 |
| Transitional aid approved | $76,200,000 |
| Health insurance costs (approx.) | From $48M to $72M |
| State FY2027 budget | $60.7B |
Officials framed the aid as critical to protecting residents from a significant property tax increase and to maintaining public safety and municipal operations. The decision follows the passage of the state’s fiscal year 2027 budget, which included transitional aid and other municipal funding across New Jersey.
As Paterson moves to adopt its 2026 budget, elected leaders and city administrators will need to translate the state aid into specific budget language and line-item decisions. Residents should expect updates at upcoming Municipal Council meetings where the budget will be presented, debated and ultimately voted on.
