Edison, NJ – The Edison Township Council is currently considering an ordinance that would allow the municipality to exceed the state-mandated 2.5% cap on budget increases for the 2025 fiscal year. Ordinance O.2247-2025, introduced by the council, proposes raising the budget cap by 3.5%, an increase of $5,227,683.50 over the previous year’s final appropriations. This development comes at a time when Mayor Joshi’s administration has already proposed a tax increase for residents.
The Local Government Cap Law (N.J.S.A. 40A: 4-45.1 et seq.) typically limits the annual increase in a municipality’s budget to 2.5%. However, the law provides an avenue for municipalities to exceed this cap to 3.5% if authorized by ordinance. The Edison Township Council is now seeking this authorization, citing the need to promote the “health, safety and welfare of the citizens.”
“The mayor and his administration have finally come to the realization that the bills are coming due on all their mismanagement, wasteful spending, and cost overruns, which is leading them to exceed the 2.5% cap law by 1%. This is a waste of taxpayer money, is irresponsible, and I will not be supporting it” said Councilman Rich Brescher who has made wasteful spending and mismanagement a cornerstone of his mayoral campaign.
According to the language of Ordinance O.2247-2025, the council specifically finds it “advisable and necessary” to increase the 2025 budget by 3.5%. Furthermore, the ordinance highlights a determined 1.0% increase, amounting to $1,493,623.86, that exceeds the standard cap.
The ordinance also includes a provision for a “cap bank.” This allows the township to retain any portion of the authorized 3.5% increase that is not ultimately appropriated in the 2025 budget as an exception to the final appropriations in either of the subsequent two years. This mechanism provides the township with some financial flexibility for future needs.
The introduction of this ordinance follows Mayor Joshi’s recent proposal for a tax increase, the details of which have been vague and subject of discussion within the community. While the ordinance itself does not directly mandate a tax increase, the approval of a higher budget ceiling provides the potential for increased spending, which could ultimately impact property taxes.
The Township Council’s decision on Ordinance O.2247-2025 will be a significant factor in shaping the financial landscape of Edison Township for the coming year. Residents will be closely watching the council’s deliberations, particularly in light of the potential for increased taxes.
The procedural steps outlined in the ordinance mandate that a certified copy be filed with the Director of the Division of Local Government Services within five days of its introduction. Upon adoption, another certified copy, including the recorded vote, must also be filed with the Director.
The next steps for Ordinance O.2247-2025 will likely involve public discussion and a vote by the Township Council at tonights 4/16 Council meeting at 7:00pm. Residents will have the opportunity to understand the rationale behind the proposed budget increase and its potential impact on their finances. The decision made by the council will determine whether Edison Township will exceed the standard budget cap for the 2025 fiscal year, adding another layer to the financial considerations for homeowners in the municipality.
It remains to be seen how the proposed 3.5% budget increase, if approved, will interact with Mayor Joshi’s proposed tax increase and what the ultimate financial impact will be on Edison taxpayers. Tonights meeting will be crucial as the Township Council deliberates on this significant financial matter.
