Republicans Urge Murphy To Cut Taxes, Not School Aid

By Christian Wade | The Center Square contributor, The Center Square New Jersey

February 24, 2023

(The Center Square) — New Jersey Republican lawmakers are urging Gov. Phil Murphy to provide relief for taxpayers, and fiscal restraint in his preliminary budget plan, set to be unveiled next week.

In a statement, GOP members of the Senate Budget and Appropriations Committee called for a budget proposal that "restrains spending and prepares New Jersey for a possible recession, provides tax relief to families and businesses and protects school districts and property taxpayers from harmful cuts in state aid."

Senate Republican Minority Leader Steven Oroho said Murphy's budget should devote surplus revenues to tax relief, and stop "automatic" payroll tax increases, and toll hikes that will take effect over the next year.

He also suggested the Murphy administration index personal income tax brackets to inflation to "stop tax bracket creep that drives people into higher tax brackets."

"New Jerseyans are the most highly taxed people in the country and it’s hurting our families and businesses," he said in a statement. "Reforms that make us more competitive will help our economy grow."

State Sen. Doug Steinhardt, R-Lopatcong, said the spending package shouldn't cut funding for public schools, saying many rural and suburban school districts had their state aid cut or outpaced by record high inflation.

"This underfunding of districts throughout New Jersey occurred even as large increases in state aid were directed to a few of the biggest districts that already get the lion’s share of funding," he said. "We must stop cutting aid to our schools, shortchanging our students, and increasing the burden on property taxpayers who end up paying more."

Another priority for the GOP minority is avoiding favoritism, and "Christmas tree" spending in the budget and in the use of federal pandemic relief funds. They want funding for programs to be merit-based, competitive and distributed statewide through grant programs.

State Sen. Michael Testa, R-Vineland, said Murphy's previous budgets have "doled out hundreds of millions to projects concentrated in a few Democrat-controlled areas" ignoring other communities.

"The state budget should benefit all of New Jersey, not just areas that have political connections to the governor and Democrat party bosses," he said.

Republicans also want budget writers to prepare the state fiscally to absorb the impact of a moderate recession, with some economists projecting a downturn this year.

"We can prepare New Jersey to weather an upcoming storm by putting existing pandemic relief and debt defeasance funds to work smartly, cutting the pork, and focusing on tax reforms that will help grow the economy," Senate Republican Budget Officer Declan O’Scanlon said in a statement.
It's not clear whether Murphy will take up the GOP lawmakers' recommendations when he rolls out his budget plan next week.

Republicans noted they offered similar proposals during the previous budget cycle, but said their plans were "completely ignored."

"Instead, Democrats passed a budget that hoarded tax over-collections and went on an undisciplined, pork-fueled spending binge," the lawmakers said.

The focus of the work of The Center Square New Jersey is state and local-level government and economic reporting that approaches stories with a taxpayer sensibility.