Gov. Phil Murphy Just Did 3 Things That Could Impact Your Life

Gov. Phil Murphy has taken three actions over the last week that could change the way your live. Those actions could impact the environment, your tax bill and your safety.

Those actions include:

• Filing a multi-state legal action to challenge the constitutionality of the GOP tax bill.
• Rescinding a rule adopted by the Christie administration that attempted to weaken New Jersey’s stringent standards of what was considered a “justifiable need” to carry a handgun.
• Mandating that the state Department of Environmental Protection and the Board of Public Utilities begin the process of reentering the state into the Regional Greenhouse Gas Initiative (RGGI).

Murphy and N.Y. Gov. Andrew Cuomo plan to file the lawsuit within the coming weeks, saying they object to the tax plan that they believe will place an unnecessary burden on New Jersey and other states with high-property taxes.

The plan would eliminate personal exemptions to help pay for the tax cut that some estimate could cost more than $1 trillion. Three important components of the plan could end up costing New Jersey taxpayers more:

• The bill would eliminate deductions for state income or sales taxes.
• The plan would cap the deduction for property taxes at $10,000. This element is viewed as a compromise because original tax reform plans called for doing away with the deduction entirely.
• The bill would preserve the mortgage interest deduction only for existing mortgages of up to $1 million but cap future deductions for mortgages up to only $500,000.

Read more: How New GOP Tax Plan Could Impact New Jersey Residents

Murphy said capping deductions for state and local taxes had "nothing to do with sound policy."

"It is a clear and politically motivated punishment of blue states – like New Jersey and our neighbors. We will not stand by and allow this to happen," he said.

Murphy said his administration "is pursuing every legal mechanism to fight for New Jersey taxpayers."

As for handguns, Murphy said New Jersey "cannot, and must not, become part of the race to the bottom on handgun carry that we are seeing across the country.”

“My position on handgun carry has been clear and unambiguous," he said. "There already are too many guns on our streets, and adding more into the equation will not make New Jersey communities any safer.”

New Jersey law previously required individuals seeking to obtain a handgun-carry permit to demonstrate a “justifiable need” that they had been the recipient of specific threats or attacks. However, the Christie administration policy, adopted in March 2017, attempted to reduce the threshold by allowing applicants to include serious threats to support the required demonstration of justifiable need.

As such, he said, someone who lives or works in an area where certain crimes are common could arguably apply for a handgun-carry permit by citing a concern for their safety, even if they had not been personally subjected to a threat or incident.

In April 2017, the Legislature sued former Gov. Chris Christie over the change, saying it ignored the legislative intent of the law, but that lawsuit is still pending.

Murphy also has signed an executive order that reverses the Christie administration's withdrawal from the RGGI greenhouse gas compact in 2012, a decision that has forced New Jersey to "fall behind on the critical goals of reducing greenhouse gas emissions and mitigating the impacts of global climate change."

“New Jersey has not been a partner to our neighbor states in advancing the goal of reducing greenhouse gas emissions since pulling out of RGGI,” Murphy said. “Pulling out of RGGI slowed down progress on lowering emissions and has cost New Jerseyans millions of dollars that could have been used to increase energy efficiency and improve air quality in our communities. With this Executive Order, New Jersey takes the first step toward restoring our place as a leader in the green economy.”

By withdrawing from RGGI, New Jersey has foregone an estimated $279 million in revenue that could have been realized as a result of participation in RGGI’s carbon budget trading program, he said. The RGGI carbon cap program represents a regional budget for carbon emissions generated by the power sectors in participating states. Participants can allocate, award, and transfer carbon allowances. Revenue is generated through quarterly auctions of carbon allowances.

Murphy’s executive order directs state Department of Environmental Protection Commissioner Catherine McCabe and BPU President Joseph Fiordaliso to immediately begin negotiations with current RGGI member states to determine how to best reenter New Jersey into the carbon budget trading program.

“Five years ago, New Jersey faced Superstorm Sandy,” Murphy said. “That storm and the devastation it brought to our state was an all-too-real look at our new normal if we do not take climate change seriously. As the densest state in the nation, we cannot afford to keep our heads in the sand any longer. Climate change is real, and a real threat to our state. Doing nothing is not an option.”

Within 30 days, NJDEP will begin determining rules and guidelines necessary to facilitate New Jersey’s participation in RGGI.

Matt Fossen, spokesperson for the NJ Coalition for Fair Energy, released the following statement today after Murphy signed the executive order to re-enter the state into the Regional Greenhouse Gas Initiative (RGGI):

“Governor Murphy has made a wise decision to re-enroll New Jersey in RGGI, and today’s executive order will long be remembered as a great step forward for the state’s energy future. Returning to RGGI will be a boon for New Jersey on many fronts, and ensure that our state becomes a leader on the national stage. As legislators continue to sort through various energy policy proposals, they must follow suit with Governor Murphy and begin preparing for 2060, rather than trying to recreate 1960. Rejoining RGGI undoubtedly fits that description, but other ideas, like issuing special legislative handouts to already-profitable nuclear plants, do not. We hope officials will be able to make this distinction as the legislative session continues, and thank Governor Murphy again for his bold leadership.”

Phil Murphy photo