PRINCETON, NJ — The Municipality of Princeton and the Princeton Public Library reached an agreement Monday to close a $149,000 budget gap that had put the two institutions at an impasse for months. The deal was announced hours before the Princeton Council met to finalize the 2026 municipal budget.
Under the agreement, the municipality will increase its library contribution by $75,000. The library will raise the remaining $75,000 through a combination of restructuring its employee parking permits — reducing the total number by 10 — and fundraising and other revenue-generating efforts.
"This is a thoughtful and balanced solution that reflects both our commitment to the Library and our responsibility to taxpayers," Council President Michelle Pirone Lambros said. "We're pleased to have worked collaboratively to reach an outcome that supports the entire community."
Princeton Public Library Board of Trustees President Christopher Van Buren said the agreement ensures the library can continue serving residents without interruption. "We're grateful for the Municipality's partnership in ensuring the library remains a vital and welcoming resource for all," he said. "This agreement allows us to sustain the programs, services, and access our community depends on every day."
The resolution ends a months-long standoff that played out publicly in recent weeks. As Patch previously reported, the municipality had told library leadership as early as fall 2025 that no budget increase should be expected for 2026 — but the library submitted a 3% increase request of approximately $149,000 anyway, citing a state-mandated 36.5% spike in staff health insurance costs and rising utility expenses for a facility that serves roughly 740,000 visitors per year.
The library is Princeton's third-largest municipal expenditure, behind only the Police Department and Public Works/Sewer. The town's total proposed library funding for 2026 is $4.98 million — including a dedicated library tax levy of $3.82 million representing 8.86% of the total municipal tax levy, plus an additional $1.15 million from the municipal operating budget.
Earlier this month, the municipality presented the library's Board of Trustees with two parking-related options for closing the gap — including ending free two-hour parking for cardholders at the adjacent Spring Street garage — but the board declined to pursue those options.
The library had already reduced its hours by one hour per day beginning in January and limited streaming services in an effort to cut costs, moves the municipality said it did not suggest or encourage.
The library also holds an endowment of more than $17 million, from which it draws approximately 4.5 percent annually for collections and programs. Municipal officials had questioned why those funds were not available for general operations, a decision they noted was made at the discretion of the Library Friends and Foundation.
Both sides said Monday's agreement reflects a shared commitment to serving the Princeton community in a sustainable way.
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