Mayor Marty Small, Sr., alongside the City of Atlantic City’s budget team and members of City Council, delivered an overview at City Hall of the city’s 2026 municipal budget. The Small Administration initially proposed a budget that included a 2.3-cent tax decrease, however, that proposal was rejected by the State of New Jersey. As part of transitional aid requirements, the state has mandated that all municipalities receiving such aid, which includes Atlantic City, implement a two percent tax increase. Atlantic City’s total 2026 budget is $283,840,902.00 (grants included).

“This is not the news we hoped to deliver today, but some factors are beyond my control, and this is one of them,” said Mayor Small. “We presented a budget in Trenton that included a tax decrease and did not return home with one. While I’m disappointed our streak of six straight tax decreases under my watch has come to an end, I remain optimistic about the Great City of Atlantic City’s future. We’re going to continue working closely with our state partners to keep moving Atlantic City in the right direction.”

Also announced, effective July 1, 2026, the minimum salary for city employees will increase from $31,200 to $35,000. In lieu of annual raises this year, all city employees will receive a one-time $3,500 stipend in their July paycheck. Additionally, each Atlantic City Police Department officer will receive a $5,000 one-time stipend in July, pending acceptance of the offer. These measures represent a one-year agreement as uncertainty remains surrounding Payment in Lieu of Taxes (PILOT) legislation.

The Atlantic City 2026 municipal budget will be presented to City Council at its May 13, 2026 meeting.

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