Tonight the Lakewood township committee will vote to adopt and approve the 2026 Budget.
Lakewood Township’s 2026 introduced municipal budget calls for a major increase in the amount raised from local property taxes, with the municipal tax levy rising from approximately $96.27 million in 2025 to $114.95 million in 2026. That represents an increase of approximately $18.68 million, or 19.4%.
Township officials blamed the state for cutting municipal aid to Lakewood and blamed FEMA for denying New Jersey emergency relief following this winter’s snowstorms. President Trump, meanwhile, said that states with sanctuary cities would not receive federal funding.
Where is the additional tax money going?
The total 2026 municipal budget is approximately $163.5 million. Major areas of spending include personnel, employee benefits, pensions, public safety, debt and other operating expenses.
Among the biggest costs: Salaries and wages: approximately $55.2 million in regular operating expenses.
Employee group health insurance: approximately $23.4 million after employee contributions, with a gross estimated cost of $24.6 million.
Police salaries: approximately $29.1 million in the regular operating budget, plus another $5.1 million listed in the excluded-cap section.
Police and other pension obligations/statutory costs: approximately $13.6 million across the major retirement and payroll-related lines.
Municipal debt service: approximately $9.73 million.
Landfill disposal: approximately $5.9 million.
How can taxes rise 19.4% when New Jersey has a 2% tax levy cap?
The 2% cap does not apply to every dollar of the municipal tax levy. The budget uses statutory exclusions that can be added outside the normal cap calculation. Lakewood lists approximately $16.9 million in exclusions, including:
$8 million current-year emergencies
$5.70 million increase in health insurance costs
$2.68 million debt service/capital leases
$332,833 pension obligation increase
$200,000 recycling tax
The bottom line for taxpayers
The budget shows:
2025 municipal tax levy: $96.27 million
2026 municipal tax levy: $114.95 million
Increase: $18.68 million
Increase: 19.4%
So while the township remains within the state's statutory tax-cap calculation because of the permitted exclusions, the amount of money being raised from taxpayers is nevertheless increasing by nearly one-fifth.
There is also a broader financial concern: in August, the New Jersey Local Finance Board rejected Lakewood's request for a $12.9 million appropriations cap waiver, with board members reportedly questioning the township's reliance on cap waivers and the sustainability of its spending.
The $114.95 million figure is the municipal-purpose tax levy only. It is not the total property-tax bill paid by homeowners, which also includes school, county and other levies.
In short: Lakewood's 2026 budget is not simply a 2% tax increase. The budget uses nearly $17 million in statutory exclusions most notably $8 million for emergencies and $5.7 million for health insurance to support a municipal tax levy that is approximately 19.4% higher than last year's levy.
How much will taxes go up?
For an average duplex $475k assessed property, that could mean approximately $650 more per year, or about $54 more per month, in municipal taxes alone. The final 2026 budget and tax rate could still change. and thats not including School county and fire taxes.
Property taxes have increased for 5 consecutive years now for just the municipal portion.
An Article in Hamodia dated November 2013 by a Lakewood Vaad spokesman states, there is no real frustration in the kehilla regarding rising property taxes.. the Vaad is “very pleased that the great vast majority did as was suggested” and dismissed, as “not serious analysis,” the notion that there is real frustration among the kehillah in regard to rising property taxes. He also says that taxes, although nobody likes them, “aren’t going away that’s the way it is. If you don’t pay taxes, you don’t get the services
"if you don't pay taxes you don't get services" so says the elite class to the simple folk. The elite get tax abatements and Free land.
ReplyDeleteIf they can't afford "bread, let them eat cake" -Marie Antoinette
DeleteShe said brioche, not cake
DeleteMezonot broit goes back a long time
Let's not forget the tax abatements given out last year alone is enough to cover any increase in tax! You're not paying for services you are paying for the tax abatements
ReplyDeleteYou’re quoting an article from 2013?
ReplyDelete$7 and $5 million is not $19 million that they're raising taxes.
ReplyDeletePlus there was no snow in past years, so one year of snow means take out of snow reserves.
By the way, how much is in reserves?
Even if NJ does not allow reserves, there are ways around it.
Considering that NYC 8Mayor Mandami should not have been allowed in Boro Park yesterday (Eichlers should not have allowed him in) we should make clear Governor S would not be allowed in.
ReplyDeletePresident Trump is, of course, always allowed in.
How did the township have 2 million dollars to give STARS last year?
ReplyDeleteWhat about the LDC give the money from all the sale of land to alleviate taxes?
How much money does the LDC have?
Deletethat computes to a 30% increase in health care costs
ReplyDeletewhy not increase property taxes TEMPORAILY till debt is gone?
ReplyDeleteThere is no such thing as a temporarily tax
DeleteWhat about all the money in the LIC the sale of land to chemed for 26 million dollars and not a penny for the taxpayers
ReplyDeleteThe Township continues approving more and more development while the basic needs of the people who already live here are being ignored.
ReplyDeleteTraffic has become unbearable. Roads are overcrowded, parking is inadequate, buses can barely get through certain areas, and children are spending excessive amounts of time sitting in traffic just trying to get to and from school. At the same time, families are being told there isn’t enough money for adequate busing.
And who would want to drive a school bus in these conditions? Drivers are expected to navigate packed streets, constant congestion, difficult turns, construction, and endless delays. It has become an extremely difficult and aggravating job, yet we continue acting surprised when there are driver shortages and transportation problems.
Meanwhile, development continues. More homes mean more cars, more traffic, more pressure on infrastructure, and greater demands on Township services. The entire town has been turned upside down trying to accommodate this growth.
Yet taxes continue to rise.
Residents are repeatedly told there isn’t enough money for essential services, including transportation for our children, while at the same time Township administrators have received substantial raises. That raises a very legitimate question: What are the Township’s priorities, and where is all the money going?
The average resident is paying more and getting less while dealing with worsening traffic, inadequate parking, transportation problems, overcrowded roads, and a steadily declining quality of life.
At this point, small changes are not enough. Lakewood needs a complete change in direction and a full turnover of the Township administration and leadership that allowed these conditions to develop and continue.
There should also be an immediate pause on major new development until a truly independent audit and comprehensive quality-of-life study are completed. That review should examine development approvals, municipal spending, administrative compensation, taxes, traffic, parking, busing, infrastructure, emergency access, and the cumulative impact of years of rapid development on Lakewood residents.
The needs of the average citizen have been ignored for far too long. Residents cannot continue paying more, receiving less, and sacrificing their quality of life while the Township continues business as usual. It is time for accountability, transparency, new leadership, and a government that puts the people who already live here first.
This is clearer because the demand for turnover comes after you’ve established the case for it, rather than appearing too early.