Murphy likely also must find more than $1 billion to increase the annual pension contribution to more than $5.7 billion in the coming fiscal year. AARP fights at both the federal and state level to ensure that all workers who have paid into their public pension systems over a lifetime of hard work have the economic security that their pensions afford in retirement. Philip D. Murphy of New Jersey released a $44.8 billion budget on Tuesday that shows better-than-expected revenue projections. Districtwide Budget . Budget would grow to $44.8 billion with more for schools, tax relief, health care, pensions and much more. This expansion of the EITC to more residents takes on an added urgency as it will put more money in the pockets of our lower and middle-income families as they continue to face the harsh realities of the COVID-19 pandemic. Those problems could be erased by another federal stimulus package, however. Both are prudent and reasonable policies to raise much-needed revenue in an unprecedented crisis by asking those with the most to pay their fair share. Phil Murphy’s $44.8 billion spending plan. PISCATAWAY — Gov. Gov. “It supports Charity Care in our overwhelmed hospitals in the fight against COVID-19, making it easier for them to provide care for all who need it. “The budget signed by the Governor today looks far different than the budget proposed in February. And the Legislature’s leading Democrat, Senate President Stephen Sweeney, has already said he sees no reason to hike taxes or fees. New Jersey tax revenues through January were 2.1% lower than in the fiscal year that ended June 30, according to treasury’s Office of Revenue and Economic Analysis. ... Murphy included a tax increase on those making more than $1 million in his FY 2021 budget. ), Ciattarelli talks Murphy budget with the New Jersey Globe, With budget signed, Murphy finally has his millionaire’s tax, Three Bergen senators back Sweeney for re-election as Senate President. Providing hardworking New Jerseyans with a potential lifeline during these difficult times is of the utmost importance.”, “AARP New Jersey applauds Governor Murphy for signing a state budget today that includes a number of AARP-supported priorities such as, restoring property tax relief for older New Jerseyans, allocating startup funding for the New Jersey Secure Choice Savings Program, ensuring a healthy pension payment, and maintaining Medicaid funding.”, “AARP New Jersey has been advocating for the state to restore two critical property tax relief programs – the Senior Freeze and Homestead Benefit – since the programs were cut in Spring 2020. But we have a lot more to do, and we look forward to working closely with Governor Murphy and the Legislature to ensure state budget policy meets our most pressing pandemic needs while also making smart investments in our future. “In no way should anyone think it means we’re fiscally stable, because we aren’t. Senate Budget and Appropriations Committee March 10, 2020 March 12, 2020: Assembly Budget Committee March 18, 2020 March 25, 2020: Other Submitted Testimony: Budget Testimony: Senate Budget Testimony: Assembly Budget Testimony: Tax and Revenue Outlook: Budget … Phil Murphy’s $44.8 billion spending plan. Gov. Here’s the proposed 2021 N.J. Budget By David Wildstein , September 21 2020 8:00 pm A-4270 Pending TR 9-21-2020 Scoresheet Language changes scoresheet for public 09-21-2020 If the state’s financial tides next fiscal year do rise, it’s crucial the state make smart decisions by spending one-shot revenue on one-time expenditures, Sweeney said. “Our budget delivers for our seniors and working-class families by fully funding the Senior Freeze and Homestead Rebate programs. Phil Murphy proposed a $40.1 billion revised 2021 budget Tuesday morning at Rutgers University’s SHI Stadium that relies on $4 billion in borrowing, $1 billion in new Budget season in New Jersey typically conjures two unpopular questions. TAX ALERT | September 30, 2020. Phil Murphy signed a three-month, $7.6 billion budget Tuesday aimed at protecting essential services amid the COVID-19 crisis. NEW JERSEY WORKING FAMILIES ALLIANCE EXECUTIVE DIRECTOR SUE ALTMAN, “We applaud the Governor’s leadership and the legislature’s willingness to take a stand for the 99% of New Jerseyans who will benefit from this budget. New Jersey Gov. The Governor’s proposed $44.8 billion budget will guide the State’s spending through the next (FY 2022) fiscal year. Phil Murphy unveiled Thursday for K-12 schools. We earmarked $100 million for small business grants. FY 2021 budget revenues are projected to be $7.35 billion, or 17.8 percent lower than prior projections. In his budget for FY2022, Phil Murphy has proposed an increase in education spending of $1.7 billion, of which $578 million is for new K-12 operating aid. We commend the Governor for restoring both programs in the Fiscal Year ’21 budget. The latest House stimulus plan in negotiations includes an estimated $8.7 billion for the state of New Jersey, and about $5.3 billion for counties … The road to recovery has and continues to be long and strenuous. The question is, whose money is it?” said state Sen. Declan O’Scanlon, R-Monmouth. Medicaid (NJ FamilyCare) serves as a crucial safety net for these and thousands of other New Jersey families. By David Wildstein, September 29 2020 We applaud the NJ Legislature and Governor Murphy for ensuring there is a healthy public pension payment in the FY’21 budget. “With that, there is simply no justification for any tax increase this year.”. Murphy signing the 2021 N.J. budget. (Photo: YouTube.) This money hasn’t shown up because we’ve been responsible. We are all in this together.” The Homestead Benefit Program provides property tax relief to almost 580,000 homeowners, while the Senior Freeze program supports approximately 157,000 of New Jersey’s seniors and residents with disabilities.”, “New Jerseyans, particularly older residents and those with disabilities living on low-, moderate- and fixed-incomes, have always struggled with New Jersey’s high property taxes. Samantha Marcus may be reached at smarcus@njadvancemedia.com. Though COVID-19 is at the forefront of our minds, this budget also funds critical research for cancer, a disease that continues to impact too many families in New Jersey and beyond. Today, that changes. It’s just one of several measures that the state is undertaking in its fiscal year 2021 budget to fill a roughly $5.28 billion gap and generate $2.5 billion in surplus amid the COVID-19 pandemic. On Sept. 29, 2020, New Jersey Gov. The budget eliminates some of the raids and one-shots that hurt the environment. We are hopeful New Jerseyans will soon be able to take advantage of this program.”, “The vast majority of New Jerseyans younger than 65 get health insurance through their work. By Associated Press , Wire Service Content March 3, 2021 … In addition to overperforming tax collections and the possibility of more stimulus help, Horizon Blue Cross Blue Shield of New Jersey will be sending the state $600 million next year as part of a deal reached in late 2020 that allows Horizon to change its corporate structure. Community Rules apply to all content you upload or otherwise submit to this site. Phil Murphy’s $44.8 billion budget proposal, unveiled last week, is a boon for retired public sector retirees, thousands of middle class residents and schools across the state. New Jersey Gov. This will be a significant achievement in the face of national trends, and the first time in memory that we have year-over-year-over-year reductions in the overall cost of health care. © 2021 Advance Local Media LLC. If the money is spent on recurring expenses, the state is setting itself up for trouble in fiscal year 2023, when it must start paying back the $4.3 billion in debt, likely will be without federal stimulus and faces a huge pension payment. “The decision to borrow $4.5 billion and build a $2.5 billion surplus is an absolute necessity to buffer against an inevitable second wave and prepare ourselves for an expeditious and full recovery. Moody’s in January estimated a hit to state and local governments of about $330 billion, dramatically less than the $500 billion it said they’d need last summer. State of New Jersey Revised FY 2021 Budget Proposal August 25, 2020 7 $1.02 billion in proposed revenue -raising measures and additionally recommends $4 bi llion in emergency As of the fall, the revenue shortfall for the current fiscal year shrank to $4.3 billion. New Jersey can’t afford to make any mistakes, said Sweeney, D-Gloucester. Married couples in New Jersey with income below $150,000 and at least one dependent child qualify for a nonrefundable rebate check. States still face fiscal stress, Shelby Kerns, director of the National Association of State budget Officers, said during a webinar in January. Its emphasis on fiscal responsibility and tax fairness will help ensure that New Jersey emerges stronger from this current crisis, with a firm foundation for future fairness and prosperity.”, NEW JERSEY POLICY PERSPECTIVE SENIOR POLICY ANALYST SHEILA REYNERTSON, “Today is a historic moment for New Jersey, as the state tax code is getting a lot fairer — and for good reason. Samantha Marcus | NJ Advance Media for NJ.com. John Reitmeyer, Budget/finance writer | February 23, 2021 | Budget. We hope that this will only be the beginning and that the state will continue to move away from austerity measures in times of economic crisis, and towards a more just, democratic economy for everyone.”, “BlueWaveNJ congratulates Governor Murphy and the legislature for creating a more equitable and fiscally responsible budget. The strong tax collections and likelihood of a one-time infusion of federal dollars has lawmakers on both sides of the aisle suggesting New Jersey’s coffers could be flush for at least one fiscal year before a potential cliff in 2023. The four hearings will … In the second quarter of 2020, when gross domestic product plunged by more than 30%, personal income increased, said Eric Kim, head of U.S. state government ratings at Fitch Ratings, said during a webinar last month. New Jersey lawmakers have scheduled public hearings on Gov. New Jersey Gov. This is because the Corporate Business Tax is increasing, and 6% of the CBT is dedicated to environmental programs. Home > Articles > Statements on Gov. They’ve requested also that the governor pause scheduled cuts to aid to districts considered overfunded according to the formula, “given the financial hardships and increased expenses resulting from the pandemic.”. Phil Murphy faces an entirely different dilemma for his Democratic administration. Our schools and municipalities are receiving the same funding level as last year. That is, in large part, because of perky sales tax collections. These priorities include assisting immigrants excluded from federal pandemic relief, restoring New Jersey’s fiscal health, and ensuring all New Jerseyans have access to programs and services they need to both survive and prosper.”, HUDSON COUNTY CENTRAL LABOR COUNCIL AND IFPTE LOCAL 194 PRESIDENT BARRY KUSHNIR, “The Hudson County Central Labor Council and IFPTE Local 194 are proud to support a state budget that includes tax fairness in a Millionaire’s Tax and Corporate Business Tax extension. This means there’s more money to make sure our air is clean, water is pure, and that we can clean up toxic sites. The group Our Children/Our Schools is urging Murphy to get “back on track” to fully funding the formula with a $475 million increase in school aid in the proposed budget. “This budget ensures the wealthy and large corporations pay their fair share, which in turn will help us provide much-needed tax relief to seniors through the fully restored Homestead Rebate and Senior Freeze programs, and to middle class families in the form of a $500 child care credit. Thank you for relying on us to provide the journalism you can trust. Phil Murphy’s $44.8 billion spending plan. About $350 billion would go to states, including $6.5 billion to New Jersey’s state government and $2.9 billion to local governments — a total of roughly $9.4 billion, under a formula proposed by the House Oversight Committee. Murphy signing the 2021 N.J. budget, Gov. The budget restored $10 million for removing lead paint from homes and $22 million for the Recycling and Clean Communities Trust Funds, which will help implement the statewide plastic bag ban. School districts this school year are receiving about $8.7 billion “formula aid” after Murphy backtracked on plans for a $335 million boost when tax revenues were crashing in the spring. No matter what, Murphy will be under pressure to deliver promised $500 tax rebates for many New Jerseyans, to make good on the state’s gigantic pension contribution and to boost money for schools. The increased investments of the Corporate Business Tax, which worked to clean contaminated toxic sites more than 20 years ago, is a win for investing in the public good. Single parents with less than $75,000 in income and at least one dependent child qualify. These steps move New Jersey towards real tax fairness with crucial new revenues, rather than putting an unfair burden on middle and low-income residents for our state’s recovery. We are disappointed families will not get back the May 2020 Homestead Benefit payment, which has added to families’ significant financial strain, but we are pleased to see that both the Senior Freeze and Homestead Benefit are restored in the FY’21 budget to support our most vulnerable population during a time of unprecedented financial crises.”, “We also applaud the New Jersey Legislature and the Governor for including startup funds to support the New Jersey Secure Choice Savings Program. May this be the first step toward long term budgetary thinking and fairness in our state.”, 32BJ SEIU NEW JERSEY STATE DIRECTOR KEVIN BROWN, “We applaud the passage of a ‘millionaires tax’ which asks residents best able to contribute to do their part for our economic recovery. New Jersey Gov. As the pandemic was unfolding last spring, unemployment soared, tax revenue plummeted and economists feared total disaster. “Given these challenges, the Legislature recommitted itself to our core responsibilities of protecting families and the most vulnerable, stabilizing local governments and stimulating our economy. State Sen. Steve Oroho, and Assemblymen Parker Space and Harold Wirths, R-Sussex, Morris, have condemned Gov. “This spending plan makes investments to strengthen our communities, from expanding preschool to boosting hunger relief programs. Two-thirds ofNew Jerseydistricts would see their state aid rise in the coming academic year under a $9.26 billion spending plan Gov. We need our state to recognize that the federal aid available to many working families for part of this year has been out of reach for immigrant families, who occupy a large share of essential jobs. For too long, the state budget has been balanced disproportionately on hard-earned money that working people have needed to cover basic necessities — not luxuries — to build a secure future for their families. In addition to the direct state aid included in the CARES Act, New Jersey benefitted greatly from the federal stimulus checks and unemployment benefits that kept money flowing through the economy. He’s hoping for a commitment from the administration that money from a federal rescue package will be used for things like paying down the state’s outstanding bonded debt or accelerating the pension contribution schedule to make a full payment next year rather than in fiscal year 2023. About $350 billion would go to states, including $6.5 billion to New Jersey’s state government and $2.9 billion to local governments — a total of … A balanced and fair budget must include all residents, regardless of immigration status, so that every household can get their basic needs fulfilled.”, ANTI-POVERTY NETWORK OF NEW JERSEY EXECUTIVE DIRECTOR RENEE KOUBIADIS, “The Anti-Poverty Network of New Jersey is pleased to see the inclusion of a true millionaires tax and the continuation of a fair corporate business tax in the state budget. And while the pandemic is still raging nearly a year later, the most grim predictions about New Jersey’s fortunes haven’t come to pass. Working, middle class families will receive tangible relief in the form of a $500 rebate next summer. It should hit the full payment in fiscal year 2023, after which contributions should level off. General Manager/Advertising: Kevin Sanders, Statements on Gov. This massive payment represents 90% of the full payment recommended by actuaries to avoid piling on more debt and would be the biggest contribution in state history. New Jersey has in recent years been increasing its contribution into the underfunded system by one-tenth of the actuarially recommended payment. That spending plan raised taxes on millionaires, extended a tax hike on corporations and used $4.3 billion in bond proceeds to balance the budget. With unemployment rates at record levels during the coronavirus pandemic, hundreds of thousands of New Jerseyans have lost their health insurance. O’Scanlon suggested any windfall be spent on taxpayer relief and consider paying off debt or making a full pension payment. We are grateful for the investments in lead remediation, which reduces lead in children’s blood, and the full funding for RGGI and EV rebates to electrify vehicles and to clean our air. Murphy had been increasing aid each year in an effort to fix the chronic underfunding of the state’s school funding formula used to send aid to public schools. FY 2021 State Budget-Municipal Interest On Tuesday, Feb. 23, Governor Murphy delivered the annual budget address. March 3, 2021 GMT TRENTON, N.J. (AP) — New Jersey lawmakers have scheduled public hearings on Gov. Now is the time to put in motion a plan to spark New Jersey’s recovery and get our economy moving forward. Michele Siekerka, president of the New Jersey Business and Industry Association, likewise said this spending plan can’t be “another lap in the seemingly endless run of taxing, spending and borrowing.”, “New Jersey has amassed a massive budget surplus, mostly on the backs of businesses, taxpayers and the unnecessary borrowing for which everyone will pay,” she said in an op-ed. Above all, this budget puts families first. Phil Murphy targeted gun owners and hunters specifically with more than $6 million in new taxes and fees in his new budget proposal announced last week. We truly are setting an example for the nation on how to build an economy that works for all of us, not just a chosen few.”. New Jersey must keep its commitment to safety net programs, property tax relief and municipal and school aid, but it also must “consider new priorities in the budget,” he added. Registration on or use of this site constitutes acceptance of our User Agreement, Privacy Policy and Cookie Statement, and Your California Privacy Rights (each updated 1/1/21). During this unprecedented health and economic crisis, these real investments in all of our state’s residents are needed to see valuable returns in our state’s economy and for New Jersey to be a place where all of our residents can recover and thrive.”, NEW JERSEY WORK ENVIRONMENT COUNCIL CAMPAIGN ORGANIZAER BRANDON CASTRO, “After years of advocacy, the Work Environment Council is happy to see the New Jersey State Government prioritize economic justice and tax fairness, and finally pass a millionaire’s tax. “Income inequality is at an all-time high, and for far too long, lawmakers failed to address this in a meaningful way. Subscribe to NJ.com. “While I continue to advocate for relief from the federal government which has abandoned our State, I’m proud we in New Jersey were able to tackle our fiscal challenges head-on and fund our shared priorities. The four hearings will be conducted remotely because of the coronavirus pandemic. The millionaires tax will help New Jersey maintain investments in crucial assets like education while responding to the COVID-19 health crisis without further worsening economic and racial inequality. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. This budget has been an improvement for the environment and the people of New Jersey.”, NEW JERSEY CITIZEN ACTION ASSOCIATE DIRECTOR DENA MOTTOLA JABORSKA, “This budget marks an important step forward in addressing longstanding racial and socioeconomic inequities in our tax code, with millionaires and the wealthiest of corporations finally paying their fair share and an expansion of Earned Income Tax Credits. In a statement announcing Tuesday’s pre-recorded address, the governor said “even as we continue to confront the pandemic’s challenges, we cannot – and we will not – sit still. “Creating a tax code that works for everyone is one of the most effective tools we have to make New Jersey a stronger and fairer state. Phil Murphy signs the 2021 New Jersey state budget on September 29, 2020. “We’re going to have a lot of money. Workers will have the choice to decide if they want to participate and how much they want to contribute from their paycheck. But this year, following a $4 billion borrowing plan to stem the tide of the coronavirus pandemic, Gov. States benefited also from relatively new e-commerce taxes and the “uneven” effects of the pandemic on job losses, Kim said. This tax would have yielded an estimated $143.1 million for eight months of FY 2021. Murphy warned New Jersey could lose as much as $20 billion to $30 billion in revenue losses over two fiscal years, which would be more than enough to cripple the state. 2021-2022 Budget Statement Software. It’s here for artificial reasons and it won’t last and our obligations will continue to grow.”. This latest address comes six months after the governor delivered a socially distanced budget address at Rutgers’ football stadium in August, where he unveiled his plans for a truncated, 9-month budget for the fiscal year spanning Oct. 1 to June 30. Murphy’s Treasury Department did not respond to a request for comment. Some of New Jersey’s budget pros are predicting that as part of Murphy’s proposed budget for the fiscal year beginning July 1, he could lift his revenue projections significantly. “. Phil Murphy signs the 2021 New Jersey state budget on September 29, 2020. As a result, the revised budget unveiled today addresses spending for only the nine-month period from October 1, 2020 through June 30, 2021. Murphy will need to set aside roughly $350 million in this budget, sources have said, if rebate checks are to go out this summer, as promised. But he, too, urged caution. Governor's Budget Recommendations : FY 2021 Budget Detail - Full PDF: 2021: Governor's Budget Recommendations : Title Page: 2021: Governor's Budget Recommendations : Summaries of Appropriations: 2021: Governor's Budget Recommendations : Summaries of Revenues, Expenditures & Fund Balances: 2021: Governor's Budget Recommendations : Department Recommendations: 2021: Governor's Budget Recommendations : Capital Construction and Debt Service: 2021: Governor's Budget … New Jersey’s unemployment rate surged to a high of 16.8% in June, well above the Great Recession peak of 9.8%. New Jersey millionaires tax won't solve budget problems and may exacerbate funding issues by making the state even unfriendlier to businesses. The administration estimated has 800,000 New Jersey households will qualify for a rebate. State of New Jersey Fiscal 2021 Budget in Brief Governor’s Letter $104 million. It’s massive tax increases. State tax revenues are surpassing projections. And now, families have been hit especially hard by the health and economic crisis created by the coronavirus pandemic. Together with the Governor and the Senate we put together a balanced plan that cut nearly a billion in spending, asked the wealthiest among us to share in the sacrifice and made the difficult decision to borrow. The budget’s continuing investments in future generations will help lay the foundation for a stronger recovery. A global pandemic has devastated our state and our economy. We once again fully fund our Transportation Trust Fund by infusing $2 billion into our transportation infrastructure. The state borrowed to fill that hole and boost its surplus account to $2.5 billion. “To do so, we could not solely tax or cut our way back to prosperity. At the same time, our essential workers have sacrificed everything throughout this crisis. The tax rebate grew out of budget negotiations last fall, with Sweeney and Assembly Speaker Craig Coughlin, D-Middlesex, agreeing after years of resistance to raise the millionaires in exchange for $500 checks to low- and middle-class taxpayers. Despite the gains made by Governor Murphy’s budget, immigrants remain excluded, without unemployment benefits or COVID19 relief. TRENTON, N.J. (AP) – New Jersey lawmakers have scheduled public hearings on Gov. Pool photo by Anne-Marie Caruso New Jersey lawmakers consider doubling budget to ... 7:23 AM EST Mar 5, 2021 ... have taken big chunks out of many Jersey Shore beaches. (Photo: YouTube. While New Jersey’s constitution typically calls for a budget to be enacted by June 30, Sen. Paul Sarlo, D-36th District, said that the state would be able to push back that date on a one-time basis. “Obviously, if the feds come through with what they say they are we’ve got to be responsible with the money,” he said. We look forward to working with the legislature and Governor to make sure no group is left behind.”, NEW JERSEY 11TH FOR CHANGE CO-EXECUTIVE DIRECTOR LESLIE BOCKOL, “For too long, tax policies (and tax loopholes) on the state and national level have been skewed to favor those in the top fraction of a percent in wealth and income. Note to readers: if you purchase something through one of our affiliate links we may earn a commission. The Jersey Shore Partnership, which advocates for beach replenishment programs as crucial to protecting the state’s tourism industry, as well as lives and property, praised the proposed increase. Together, we made significant investments in hunger relief, anti-poverty and health programs to continue helping struggling families through this crisis. In 2019, Governor Murphy enacted Secure Choice, which is a public-private partnership that will allow many hardworking New Jerseyans to have a retirement savings option that puts them in control of their futures. While we applaud many aspects of this budget, there is further work to be done. After accounting for about $90 billion in outstanding CARES Act dollars and $70 billion in unspent reserves, Zandi said they’re facing a $170 billion hole. While this is good news, our organizations remain committed to advocating on behalf of the many New Jersey families who continue to suffer inequality and will not relent in our pursuit of a budget that works for all.”, NEW JERSEY ALLIANCE FOR IMMIGRANT JUSTICE INTERIM DIRECTOR AMANEESHA KELKAR, “New Jersey’s immigrant families have gone six months living with increasing economic insecurity every day. NJ Transit saw an increase as well. “Most states have been able to avoid severe budget cuts so far through the use of rainy day funds, federal assistance and other one-time measures, but challenging budget choices lie ahead for states as they prepare to set their spending plans for fiscal 2022 … as well as make adjustments to their budgets for fiscal 2021.”. We are gratified to see Governor Murphy sign this historic bill into law today, and proud that New Jersey is leading the way on tax fairness!”, NEW JERSEY STATE TREASURER ELIZABETH MUOIO, “The increase in eligibility and amount of the Earned Income Tax Credit could not come at a better time, especially for lower- and moderate-income families, who we know have been hardest hit by the COVID-19 pandemic.