Phil Murphy Reveals New Jersey’s $53.1 Billion State Budget, Resuming Property Tax Credits

New Jersey Democratic Gov. Phil Murphy on Tuesday unveiled a $53.1 billion budget for fiscal year 2024, about 5% more than the spending plan he signed for the current year, offering more school aid, an updated benefit program in property taxes and additional billions for the population. pensions, transport and other projects.

Murphy, who won a second term as governor in 2021, called the budget a helping hand for residents facing rising costs and the impact of COVID-19.

“First it was a pandemic, and now inflation. You pay more for everything from gasoline to groceries and your wages are not keeping up,” he said. “This entire budget is designed to help you find your place in the next New Jersey by securing your place in New Jersey right now.”

The Governor announced his plan during a speech in the Democratic-led Legislative House, an annual tradition interrupted in the midst of the COVID-19 outbreak. New Jersey’s constitutional deadline for a balanced budget is June 30.

Murphy is aiming to fulfill the campaign promises he made during his first gubernatorial office: for the third year in a row, he has offered to make a full payment to the state pension fund. This will amount to about $7 billion, which is $250 million more than last year. The plan will fund K-12 education under a formula approved by the state Supreme Court, increasing funding by about 8% to $10.75 billion. The Governor also wants to keep New Jersey fares the same and provide about $1 billion for universal preschool education, up $110 million from this year.

The proposal does not include tax increases.

Murphy campaigned in part by raising income tax rates for people making more than $1 million, a promise he and lawmakers made good on in 2020. That year’s budget also increased business taxes by 1 percentage point, the increase expiring in four years. That time has expired and Murphy is not looking to extend the higher tax rate.

The Governor also intends to extend the property tax relief program for a second year as part of his drive to make the state more affordable. The program is valued at $2 billion and promises families up to $150,000 for a $1,500 rebate check. Those earning between $150,000 and $250,000 get a $1,000 rebate. Continuing last year’s renter assistance, those earning up to $150,000 will receive $450. The program will help approximately 1.5 million households.

New Jersey has some of the highest property taxes in the country, averaging around $9,500 per year.

Republicans, a minority in the Legislature but emboldened by winning seven seats in 2021, have criticized the proposal, urging the governor to cut taxes.

“When the state is full of money, Governor Murphy has no excuse to continue to ignore tax breaks that would go a long way for families and businesses fighting inflation,” said Senate Republican Steve Orojo.

Murphy’s proposal must first pass the Legislature, which can change it before the governor signs it into law. This November, all 120 state legislators are on the ballot.