Atlantic County Cuts Tax Rate Nearly 3 Cents Despite Rising Payroll, Health Costs

County Executive Dennis Levinson says low debt and fiscal management helped county absorb 4% employee raises and sharply higher health insurance costs

ATLANTIC COUNTY — Atlantic County lowered its tax rate by nearly 3 cents this year even as it absorbed employee raises, higher salaries and sharply rising health insurance costs, a combination County Executive Dennis Levinson says is possible because the county has kept its debt and other expenses under control.

Speaking this week on Klein Time with Dan Klein on WOND, Levinson pointed to the tax-rate reduction while discussing the county's financial condition.

“Atlantic County is in great shape,” Levinson said. “We’ve lowered the tax rate by three cents.”

At the same time, he said county employees received a 4% raise.

“Every employee got a 4% raise, Dan,” Levinson said.

County records reviewed by South Jersey NewsBeat confirm that the final reduction was slightly larger than originally anticipated.

When Levinson introduced the county's $283 million 2026 spending plan earlier this year, officials projected a 2-cent decrease in the general-purpose county tax rate. The budget called for a $198.5 million county tax levy and the use of $22.5 million in surplus.

Officials cautioned at the time that the final tax rate would depend on municipal property values submitted to the Atlantic County Board of Taxation.

By June, the final picture had improved. Atlantic County announced that its tax rate had declined by nearly 3 cents, while noting that most municipalities had experienced tax-rate increases.

Costs were going up, not down

The reduction did not come during a year in which county expenses were falling across the board.

Atlantic County's budget documents projected an average 38% increase in State Health Benefits Program premiums for 2026, with those costs shared by employees and taxpayers.

Salary and wage expenses were also expected to increase as the county incorporated new pay scales negotiated with its 23 bargaining units.

The county budgeted an additional $1 million each for Meadowview Nursing and Rehabilitation Center and the county justice facility, along with another $1 million to meet contractual obligations for the Harborfields youth detention facility.

Pension and benefit contributions were projected to increase by $775,000, while Social Security expenses were expected to rise by nearly $400,000. The county said it planned to keep many vacant positions frozen to help offset some of those increases.

Levinson said the county has also tried to remain competitive as an employer, arguing that compensation needs to be viewed along with benefits.

He said the average annual county salary is approximately $61,000 and pointed to vacation, sick, administrative and family leave benefits offered to county employees.

“Many of our employees stay here until they retire because they’re treated right,” Levinson said.

Levinson points to low debt

So how does the county lower its tax rate while its labor and benefit costs are increasing?

Levinson says one major reason is debt.

“What I have done since I’ve been county executive for 27 years is to make sure that we don’t borrow excessively,” Levinson said. “Our debt is extraordinarily low, which allows us to pay our employees a decent wage, a fair wage to them and to the taxpayers.”

“That is the key,” he added. “Low debt.”

The county does borrow for capital projects, so Levinson's comments should not be interpreted to mean Atlantic County carries no debt. His broader contention is that limiting borrowing reduces the amount of future budgets that must be devoted to debt payments.

Independent credit-rating agencies have continued to give Atlantic County relatively high marks.

In June, S&P Global Ratings assigned the county's 2026 general obligation bonds an AA rating with a stable outlook, while Moody's Investors Service affirmed an Aa2 rating with a stable outlook.

S&P cited the county's financial performance and long-term planning as contributing to stability through changing economic conditions.

“Despite a slowing economy and elevated fixed costs such as pension and health benefits, Atlantic County is financially stable and secure,” Levinson said when the ratings were announced.

Surplus also plays a role

Low debt isn't the entire explanation.

Atlantic County also used $22.5 million of surplus as revenue in its 2026 budget, slightly more than half of the surplus available when the spending plan was introduced.

That allows the county to fund a portion of current spending without raising the same amount through property taxes.

The county entered 2026 from a strong surplus position. Its recently published audit synopsis shows a fund balance of approximately $57.2 million at the end of 2025, up from about $38.6 million at the beginning of that year.

Levinson has repeatedly argued that controlling spending and borrowing gives the county room to absorb unexpected expenses without immediately passing them on to taxpayers.

“You say no to friends. You say no to contributors,” Levinson told Klein. “You say no to everything that does not benefit the people that you represent.”

Lower rate doesn't necessarily mean lower bill

There is an important distinction for homeowners.

A nearly 3-cent reduction in the county tax rate does not guarantee that every Atlantic County property owner will pay fewer county taxes.

Property-tax bills are determined by applying the tax rate to taxable property values. A homeowner whose taxable assessment increased enough could therefore pay more in county taxes even with a lower rate.

The reduction does mean the county is collecting its levy across a tax base that allows it to charge a lower rate than it otherwise would.

When the budget was introduced, Levinson said the projected reduction would mark the 18th time during his tenure that Atlantic County had lowered its tax rate.

For Levinson, the combination of a lower rate and increased employee compensation is evidence that the county can maintain services and its workforce without automatically turning higher costs into higher tax rates.

“We’ve lowered the tax rate by three cents,” Levinson said, “as the municipalities and other counties in the state have raised their taxes.”

Levinson made his latest comments during an appearance on “Klein Time with Dan Klein” on WOND.