Local Group Fighting Taxes

Kumar (Kem) Balani is becoming a familiar face at Township Council meetings.

The founder of a local group called EB Tax Cut, Balani has been demanding the that the Township Council cut taxes by 50 percent across the board, including municipal, school and county taxes. He also is asking the council to repeal a $3.4 million capital budget that includes money for road paving and maintenance.

“We are asking for 50 percent because our taxes have doubled from 2000 to 2010,” said Balani. “How can you ask for double when you are not really getting anything, a lot of people don’t even have kids in school. What are they paying for?”

Balani said he's not sure how many members the group has, but it is growing as more people get angry over what they perceive as increasing taxes for limited services. Over the past several weeks, Balani has addressed the township council and the school board. He also has asked for meetings Mayor David Stahl and met last week with school Superintendent JoAnne Magistro.

Township Council members have said they have no power over the school budget, and that municipal taxes make up 20 percent of tax bills. To that, Balani says: “Do you want to be a 100 percent mayor, or a 20 percent mayor?”

According to a chart (see chart) Balani brings to council meetings, taxes in East Brunswick have doubled in the past 10 years, from $4,485 in 2000 to $8,875. He also compares township taxes to Bedminster, named one of the most desirable towns to live in by NJ Monthly and says their K-8 district performs better than East Brunswick's at less cost.

“From the tax payer's point of view, they got nothing more in 2010 in terms of services or products compared to the year 2000, so why are the taxpayers being charged twice as much by the township, especially by the school teachers and employees which consume two thirds of EB property tax payments?” he said in an email

However, according to budgets proposed by the township and school board this year, it is more than just spending that is driving taxes. In February, Mayor Stahl introduced a $55.980 million municipal budget that cuts spending by 1.2 percent but still carries a tax increase. Mayor Stahl has said that since he took office, spending has decreased from$64 million in 2008 to near $56 million for this year.

Over that time, revenue from sources other than taxes have been declining, and the amount raised through taxes - $35.706 million in 2011 - now makes up approximately 60 percent of the budget. The township is hoping for $4.166 million in state aid this year, the same as last year, but is bracing for another reduction. Last year, state aid was cut $1.116 million, the equivalent of more than five tax points, said Mayor Stahl. East Brunswick also is expecting less in the amount raised through the hotel tax, $500,000 in 2011, down from $700,00 last year.

On the school side, the district's amount to be raised by taxes has remained relatively stable since 2008. In the 2008-09 school year it was $106,086,228; in 2009-10 it was $106,086,288; and in 2010-11 it was $106,788,787. For the upcoming year, the district is proposing a tax levy of $108,924,563.

Revenue from state aid has declined from $20,087,014 in 20089-09 to $15,527,825 in 2009-10, and $13,817,220 for 2010-11. The district expects to get approximately $15.1 million for the upcoming year, higher than this year, but still below previous levels. It also had to pay $1.3 million for a new charter school this year.

To compensate, the district is proposing to cut 25 teachers this year. Last year, 99 district employees were let go due to budget cuts. In addition, School Business Administrator Bernardo Giuliana said Thursday during a public hearing on the budget that cutting taxes 50 percent would be equal to closing Hammarskjold, Churchill, and the high school, or more than all eight elementary schools. 

Balani says that the amount of revenue should have no effect on his request to cut taxes, and that like private businesses, the township and school should learn to make due with what they have.

“They both use the excuse of lower revenues from business as the reason for higher taxes,” said Balani in an email. “I've talked to several EB businesses and they tell me the reason so many stores have moved out is because East Brunswick government has become too expensive and is bloated with too many people in government doing very little work and they're being paid from our pockets with higher property taxes.”

Giuliani also took time Thursday to compare East Brunswick not to Bedminster, but to what he referred School District No. 240. He said district 240 is a K-8 district with 605 total students, where East Brunswick is a K-12 district with 8,738 students. In the end, East brunswick is paying approximately $17,095 per pupil, while district 240 pays $17,864 per pupil.

But Balani isn’t just one to complain about taxes. He has presented the township with several proposals that he says can be enacted for immediate savings. They include:

1. Buying services from outside companies.

Buy services from independent companies to alleviate the township from having to provide benefits such as health insurance and pensions..."the ongoing costs of these benefits are not only very, very high, lasting perhaps decades, but the final costs to tax payers is really unpredictable (as interest rates do change over time and there is possibility or necessity - of refinancing debt to pay for the benefits)."

2. Create more charter schools to reduce East Brunswick’s property taxpayer’s net cost.

3. Examine and implement what other low property tax municipalities are doing.

4. Get energy savings by finding alternative energy suppliers and replacing all incandescent bulbs with fluorescent ones.

5. Sell unneeded East Brunswick properties and other assets and give proceeds of sales equally to property tax payers.

6. Share whatever services possible with other towns.

Even Balani realizes the cutting taxes by 50 percent might be difficult, but he says even a small gesture, such as cutting them by 10 percent at first, would help.

“If we can get something done, to show good faith and take a 10 percent cut,” he said. “We don’t need to tell you a million times to do it, you should do it.”

Balani said that no matter what happens, he and his group will continue to fight taxes and to work on proposals to cut them.

“Such financial abuse of tax payers by the mayor and the school board is patently unfair and unjust. Just because they have absolute power to tax the residents and commercial property owners in East Brunswick does not mean they will not cut their own salaries and benefits and those of their employees, but take more money from our pockets."