Largest Budget In NJ History Approved Includes Property Tax Relief, Child Credit

NEW JERSEY — The new fiscal year has begun for New Jersey’s state government, and Gov. Phil Murphy put pen to paper on the state’s largest-ever budget after some last-minute additions which rankled some.

The $54.5 billion budget includes money for K-12 schools, senior property tax relief including the new StayNJ program, and doubling the state’s child tax credit as well as funding for some legislators’ chosen community projects.

State leaders also committed to making a full $7 billion payment to the public worker pension fund, and said the budget results in a historic state surplus of $8.3 billion which the state can lean on in times of financial crisis.

The Democrat-controlled legislature passed the bills last week despite Republicans’ concerns over costs and transparency, and Murphy signed the budget on Friday in time to avert a state government shutdown. The Assembly passed the bill 51-27, and the Senate approved it 25-12. Related article — $54B New Jersey State Budget Gets Mixed Reaction (See The Highlights)

“When I first proposed this budget, I said it was a budget designed with a singular purpose – to continue building an economy where every family can afford to make their American Dream come true," Murphy said on signing the bill. "Today we are delivering on that promise.”

Sen. Joe Pennacchio (R-Montville) criticized the Democratic leadership for rushing through the budget, adding there was not enough time for legislators to see last-minute changes before they were asked to make a decision. Members of the public were also not given an opportunity to testify before the votes.

“The wimpy premise of voting for a budget today and waiting to reward senior taxpayers years from now deserves to be confined to the list of comedy of errors that has followed this year’s budget process,” Pennacchio said. “New Jersey citizens deserve better.”

Assemblyman Hal Wirths (R-Sparta), the Republican budget officer, said the full budget bill was not presented before the vote late Friday evening.

“This is a massive problem that needs to be fixed,” Wirths said. “Transparency is important and right now the legislature doesn’t have any. Every budget is crafted behind closed doors and the public never gets the opportunity to testify. That is the opposite of democracy.”

And left-leaning think tank New Jersey Policy Perspective predicts the state “will soon face a fiscal cliff that we aren’t prepared for.”

“Make no mistake, there’s a lot to celebrate in this budget, but it will be incredibly difficult to maintain adequate funding for the pension, public schools, the Child Tax Credit, and countless other public goods with less tax revenue,” said NJPP president Nicole Rodriguez. “We’re already seeing tax collections coming in lower than expected, and with federal pandemic aid about to expire, New Jersey will soon face a fiscal cliff that we aren’t prepared for.”

Still, Murphy and the legislators involved in tailoring (and tinkering with) this year's budget championed the spending plan as a continued investment in keeping New Jersey affordable and a good place to both raise a family and enjoy retirement years. Senate President Nicholas Scutari (D-Clark) said the budget "will help improve the lives and livelihoods of New Jersey’s residents in meaningful ways.”

“This is a great budget for the people of New Jersey," Scutari said. "It will help make their lives more affordable with an historic amount of property tax relief, including increased rebates, an expansion of Senior Freeze and a down payment on StayNJ, which will provide additional tax relief for senior citizens."

Here's a closer look at some items in the 2024 fiscal budget, according to a summary from Murphy's office:

• Formula aid for K-12 public schools: $10.75 billion (includes $832 million added in K-12 formula aid).
• Budget surplus: A surplus balance in the general fund will total more than $8 billion by the end of the 2024 fiscal year, budget documents show.
• Property tax relief: State leaders are fully funding the $2 billion ANCHOR program, increasing benefits for senior homeowners and renters. They also appropriated another $300 million for the year StayNJ is implemented.
• NJ Transit subsidy: Increased to $140 million.
• For seniors: The budget expands the Senior Freeze property tax relief program, and increases eligibility for the Pharmaceutical Assistance for the Aged and Disabled (PAAD) program.
• Child tax credits: The budget doubles the state Child Tax Credit, enabling families with young children to receive up to $1,000 per child under age six for families earning under $30,000.
• Pension payment: The record $7.1 billion payment into the state pension fund includes contributions from the New Jersey Lottery.
• State tax holiday and fee-free entrance to state parks: Renewed in this year's budget.