6 Points In NJ Gov. Phil Murphy's Budget Address That Affect You

New Jersey Gov. Phil Murphy did what everybody thought he would do on Tuesday: deliver a 2020 budget address that proposed a tax hike on anybody who makes at least $1 million a year.

But his address covered a lot of areas – budget cuts, property tax relief, expanding pre-K, finding savings, improving NJ Transit – that millions of New Jerseyans may find interesting, if not appealing (or even detestable).

Read more: 4 Taxes NJ Possibly Faces As Gov. Phil Murphy Introduces Budget

Here are six major points in his prepared remarks that could affect New Jerseyans in a big way:

Property tax relief

Murphy said his adminisration restored direct property tax relief to thousands of middle-class families who were cut off by the Christie administration. He said the budget "maintains our commitment with $283 million in direct property tax relief for our middle-class families and seniors."

Millionaire's tax

Murphy asked the Legislature – which has been reluctant to go along with the idea – to work together to apply the millionaire’s tax to every millionaire. "By doing so, we can do more to relieve the burden on middle-class taxpayers and senior citizens who are taking it on the chin from the Trump Administration’s tax scam," he said.

Murphy said the state needs to restore "tax fairness" now that the Trump administration has taken steps to cap state and local tax deductions.

"Right now, across the state, countless middle-class families are doing their taxes and wondering where the tax cuts they were promised by President Trump and his enablers went," Murphy said. "Many barely felt the impact in their take-home pay, and now they’re getting less back in their refunds."

Legislative leaders were already throwing water on the idea just as the speech concluded. Assembly Speaker Craig Coughlin, D-Middlesex, said he remains convinced "that we can achieve added substantial savings through reforms and that our fiscal solutions should not include any broad-based tax increase, including sales and income tax."

"We will continue to look for more government efficiencies and savings," he said. "I look forward to working with our caucus, our budget chair, Assemblywoman Eliana Pintor Marin, Senate President Steve Sweeney and the governor to deliver a responsible budget that makes New Jersey a more affordable place to live.”

Republicans like Assemblyman Anthony Bucco wentn further, rejecting Murphy’s "second budget for contributing to the state’s unaffordability problem."

“The governor continues to peddle expensive programs that sound nice but carry massive price tags that the state has no ability to pay for – even as we sit on tens of billions of dollars in unfunded liabilities,” said Bucco, R-Morris. “This misguided approach is why we continue to hear proposals in Trenton for higher taxes and state spending that will eclipse 11 percent in just two years. Everyone in New Jersey understands that taxes are crippling for families and businesses, except the governor and his political allies in Trenton. It’s time to get serious about our fiscal challenges and finally make New Jersey more affordable.”

"Let’s be absolutely clear – this is not a tax that will be paid by anyone in the middle class. Period. Full stop," he said. "But, it is revenue that is necessary to strengthen and expand the middle class."

$1.1 billion in savings

Murphy said the budget is rooted in more than $1.1 billion in "real and sustainable savings" –including nearly $800 million in public employee health benefit cost savings and another $200 million-plus in departmental savings.

"You heard that number right – over $1.1 billion in real and sustainable savings," he said. "Much of these significant savings were achieved through cooperation with our public employees rather than through confrontation. These savings were achieved through the power of working together."

This budget is built upon four elements, he said. "One: Doing the hard work to realize over $1.1 billion in sustainable savings. Two: Stabilizing New Jersey’s credit-worthiness through responsible fiscal stewardship. Three: Maintaining and growing our investments in education, infrastructure – in particular NJ Transit – and an innovation-driven economy that reaches deep into every neighborhood. Four: Ensuring tax fairness for our middle class."

Fixing NJ Transit

Murphy said there is "no higher priority than fixing NJ Transit," and that the state owes commuters a transportation system "that makes their lives smoother rather than harder."

The budget began the process of "turning around an agency that had been hollowed-out by years of disinvestment and mismanagement, leaving customers as second-class citizens and hurting our economic well-being," he said.

While saying there will be no fare hike, Murphy said the budget will allow NJ Transit to move ahead with procurement of new rail cars and buses and build capacity and relieve overcrowding.

The administration also is "rebuilding the gutted ranks of rail engineers and bus operators needed to keep the lines running – and I cannot wait to welcome our first class of new train engineers later this spring," he saud.

The budget provides $407 million in general fund support to NJ Transit, a $100 million increase that will replace $75 million in fund diversions.

Budget surplus

Murphy said the the projected surplus of the budget he signed last year was $765 million – a "vast improvement over prior budgets." Through careful management and keeping an eye on every dollar, he said, the state has grown its surplus by one-third over the year.

"And (we) are now set to close Fiscal 2019 with a surplus of over $1 billion," he said. "This budget will grow our surplus even more in Fiscal 2020, to nearly $1.2 billion."

Boosting education.

Murphy said his administration has increased investment in high-quality pre-K programs and that, in 64 additional school districts, more than 4,400 3-and 4-year-olds now have access to pre-K they lacked just one year ago.

The budget maintains this commitment, he said, starting with an additional $206 million to ramp-up to the full K-through-12 formula funding. There is $68 million more to not only maintain, but to expand, pre-K, he said.

The budget includes $5 million more for Tuition Aid Grants, and an additional $2.25 million to support the Educational Opportunity Fund, he said.

Murphy also noted his administration inaugurated a grant program that helped 13,000 qualified students to pursue an associate’s degree tuition-free at one of 13 community colleges.

The budget will grow the administration's investment in Community College Opportunity Grants to reach a total of 18,000 students in the 2019-2020 academic year at every community college, he said, and more of them will be pursuing a degree full-time.

"And, our budget looks to a new way to help our four-year public colleges and universities," he said. "We propose $20 million in new formula-driven aid, based on what is needed to ensure the best outcomes for all students and reflect the diversity of our state."

You can watch the budget address here: