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      Editorials February 28, 2008  RSS feed

      High time that E.B. stops the tax bleeding

      When East Brunswick Councilman David Stahl says the township needs to live within its means, he likely has the support of nearly every taxpayer in town. Earlier this month, Stahl was the only council member to speak out against an ordinance that allows the township to exceed the state's 2.5-percent cap on spending increases, and over the past two years has repeatedly voted against spending resolutions.

      To his credit, on Monday, Mayor William Neary presented a budget that is under the state cap, at 1.84 percent, but it is a budget that still carries a large tax hike.

      The constant property tax increases are making the township unaffordable for many homeowners. But the pleas of many residents to do something about this problem seem to fall on deaf ears in most cases. Residents who complain at meetings often get little in the way of a response, or they're told that the state is to blame for the out-of-control property taxes, which is an easy way for local officials to pass the buck.

      Township officials need to be more proactive and dealing with budget increases, regardless of the state's hand in causing them. There is no good excuse for last year's 12-percent increase in municipal taxes. Taxpayers in 2007 had to swallow a 15-cent hike in the municipal tax rate, and a school tax rate increase of 37 cents. Together, this amounted to a $520 increase for a home assessed at $100,000 - in one year alone. The prior year, the municipal tax rate hike was 6 cents, and the school tax hike was nearly 30 cents, including debt service.

      On Monday, the council introduced a budget that would tack another 11 cents onto the municipal tax rate.

      Township officials need to realize that this situation is unacceptable to most residents. Neary's explanations for his tax increases have included contractual costs, inflation and reduced state aid. He states annually that the budget has been scrutinized, line by line, and that all waste and fluff have been eliminated. Unfortunately, this is no longer enough. Excuses need to be replaced by harder work and tougher decisions. Though Neary said Monday that five positions will be cut through attrition in this budget, it's time to look at more staff cuts and the possible reduction in programs to keep the town livable.

      This is especially the case given a potential problem on the radar for 2011. At that time, annual payments from Toll Brothers for its purchase of the Golden Triangle property will stop, and it remains unclear whether the new businesses and residences proposed for the site will be operational and paying taxes by that time. The township should start preparing for that scenario now, cutting expenses in line with the expected loss of revenues.

      As Neary has rightfully said, working on the budget is a twoway street, and council members who want cuts need to make specific suggestions and be willing to live with the consequences. With the mayor presenting his budget earlier this year, council members now have a better opportunity to make changes. They need to do just that, if they are to adequately represent those who elected them.