Westfield Facing $1 Million in Higher Costs in 2026 Budget

WESTFIELD, NJ — Westfield officials say the Town is heading into the 2026 budget season with a major challenge already taking shape — about $1 million in higher costs they say are mostly outside of local control.

During the May 19 Town Council meeting, Town Administrator Jim Gildea explained that several of the Town’s regular expenses are expected to increase in 2026, including costs tied to utilities, insurance, pensions, and regional services.

“Already for 2026 we know that some of our non discretionary expenses are already up a million dollars in various categories,” Gildea said.

He was referring to required expenses — bills the Town must pay each year that are not optional and cannot easily be changed by local officials.

“Every budget is its own puzzle, because a lot of things are just given to us,” Gildea said. “We get a pension bill, we get a sewer authority bill, we get a joint insurance bill. All of those numbers are different.”

Gildea also explained that most of the property taxes collected in Westfield do not stay with the Town. Out of roughly $197 million collected, most goes directly to the school district, the library, and Union County. The Town keeps about $31.5 million to run local services like police, public works, and other operations.

He said that smaller portion is the only part of the budget Town officials can directly adjust when working to balance the numbers for the 2026 budget.

Even with the higher costs expected for 2026, officials said Westfield is starting the budget process in a strong financial position after finishing 2025 with more savings than originally planned. That reserve, they said, gives the Town some flexibility as officials work through the 2026 budget in the months ahead.

Gildea said Town staff will continue meeting with departments over the coming weeks to adjust spending and build out a full budget plan before it is presented later this spring.

“I think we’re in an excellent financial position for 2026,” Gildea said. “The puzzle will start coming together very soon. It’s already started, and we finished 2025 very strong.”