Princeton Library Group Says Endowment Can't Plug Budget Gap

PRINCETON, NJ — The Friends and Foundation of the Princeton Public Library has weighed in on the Princeton library budget dispute, saying the library's private funds cannot legally be used to replace public funding.

The response came after Princeton Mayor and Council said the library — which receives what officials described as the highest level of municipal library support in New Jersey — should explore using its endowment to help close a $149,000 budget gap.

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In a statement, the Friends and Foundation said the endowment, valued at more than $17 million, is governed by the Uniform Prudent Management of Institutional Funds Act and structured to provide long-term support through a disciplined annual distribution.

"Using endowment funds in that way would undermine long-term financial sustainability and would not be consistent with lawful management of charitable assets," the group said. "This is not a 'discretionary decision'; it is a fiduciary responsibility."

The municipality had previously characterized the endowment's use exclusively for collections and programs — rather than operating expenses such as health insurance or utilities — as a discretionary decision made by the Friends and Foundation.

The group also disputed how municipal funding figures have been presented. While the library's share of the tax levy is frequently cited in the budget debate, the Friends and Foundation said that figure does not reflect the full revenue picture. Payments in lieu of taxes from developers and voluntary contributions from large institutional property owners are projected to generate $9.5 million in municipal revenue in 2026 but do not contribute proportionally to the library's dedicated funding, the group said, even as they increase demand for library services.

The Friends and Foundation also addressed the question of employee parking. "Library staff are treated consistently with other municipal employees in having access to workplace parking," the group said. " These and other factors are part of the broader operational context required to safely and effectively serve the public.”

On the broader funding issue, the group acknowledged the municipality's role in budget decisions. "Decisions about municipal resource allocation ultimately rest with the mayor and council, and we appreciate that they have multiple priorities to weigh," the statement read.

Every book in the library's collection — print and digital — is funded through private philanthropy, not tax dollars, the group said.

"Philanthropy alone cannot sustain a public institution of this scale," the Friends and Foundation said. "A strong and effective library depends on a partnership between community generosity and municipal investment."

Princeton Council is expected to vote on the 2026 budget at its April 27 meeting.

Read their full statement below:

The Friends and Foundation of the Princeton Public Library is proud to support one of the community’s most valued public resources. Each year, through book sales, events, and the generosity of donors, we raise significant private funding to enhance the library's collections, programs, and services. In fact, every book—print and digital—in the library's collection is funded through philanthropy, not tax dollars. This is something our community has built together over decades, and it remains a point of pride.

At the same time, it is important to recognize that decisions about municipal resource allocation ultimately rest with the mayor and council, and we appreciate that they have multiple priorities to weigh. The library's role—and ours—is to clearly communicate the resources required to operate one of the most heavily used public buildings in Princeton and to ensure that donor-supported funds are managed responsibly.

We also serve as stewards of the library's endowment, managing these funds in accordance with donor intent, our investment guidelines, and the Uniform Prudent Management of Institutional Funds Act. The endowment is structured to provide sustainable, long-term support through a disciplined annual distribution while preserving its value in perpetuity.

For that reason, it is important to clarify that the endowment cannot be used to replace municipal funding. It was established explicitly to supplement and enhance public investment—not to offset recurring operating costs such as health insurance or utilities. Using endowment funds in that way would undermine long-term financial sustainability and would not be consistent with lawful management of charitable assets. This is not a “discretionary decision"; it is a fiduciary responsibility.

We also believe it is important to provide additional context regarding municipal funding. While the library’s share of the tax levy is often cited, that figure does not reflect the full revenue picture. Payments in lieu of taxes (PILOTs) from developers and voluntary contributions from large institutional property owners generate substantial municipal revenue ($9.5 million for 2026) but do not contribute proportionally to the library's dedicated funding, even as they increase demand for library services.

Similarly, certain operational realities have been mischaracterized. Library staff are treated consistently with other municipal employees in having access to workplace parking. These and other factors are part of the broader operational context required to safely and effectively serve the public.

The Friends and Foundation remains committed to growing private support for the library. At the same time, philanthropy alone cannot sustain a public institution of this scale. A strong and effective library depends on a partnership between community generosity and municipal investment.

We will continue to advocate for the resources necessary to ensure that the Princeton Public Library remains accessible, welcoming, and responsive to the needs of our community.

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