TRENTON, N.J. (KYW Newsradio) — New Jersey Gov. Phil Murphy laid out his priorities for next year’s budget, and the state’s ANCHOR property tax relief plan will be included once again.
There are a few noteworthy items from Murphy’s $53 billion budget plan, including a promise for no new taxes and assistance to help seniors stay in their homes.
“This budget will greatly expand the successful Senior Freeze property tax relief program — increasing income eligibility to $150,000 and removing roadblocks to eligibility,” Murphy said. “That means additional property tax relief for 50,000 more seniors.”
He mentioned affordability numerous times, and he knows New Jersey is an expensive place to stick around after retirement and to raise a family.
“So today I ask you to join me in putting homeownership back within reach of hard working families with a $15 million investment in first-generation home buyer down payment assistance,” Murphy said to lawmakers at the state house.
He highlighted school funding increases for pre-K and K-12 schools ($830 million) while proposing filling in a federal funding gap by doubling the state’s child tax credit to $1000 per kid.
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“From my first day in office, I rejected the false choice that you are either for business or for hard working families. We can be competitive and more compassionate,” he said.
Murphy also wants to spend $100 million to replenish and rebuild boardwalks from Cape May up to Seaside Heights.
Families also need relief from rising costs and Murphy says one of his areas of focus will be on equity.
“I’ve said it many times before. Strong and progressive values are New Jersey values, resonate not just around kitchen tables but around corporate board tables,” he said.
Murphy believes the state can be more helpful and fair to citizens and businesses at the same time, saying those aren’t competing endeavors. He wants to end a 2.5% corporate tax and revamp the state’s old liquor laws.
“This budget makes countless investments in communities and in our main streets to secure their futures,” he said, “and making a liquor license more affordable for more restaurants is a huge step to helping them secure their place in their communities' future.”
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The budget includes an urban investment fund to help cities, eliminate medical debt for some and provide $10 million to hire tutors to address learning loss. Each county would also get a VA hub to better serve veterans in-person and close to home.
Murphy’s proposal also fully funds the state workers pension and provides $2.4 billion in debt relief, which the governor says could be invaluable if there’s a national recession down the road. The state has a $10 billion surplus.
“This is a serious spending plan that will be given a thorough review by the Senate Budget Committee in the months ahead,” Senate budget and appropriations committee chairman Paul Sarlo said.
“Our top priority is to find sustainable ways to make the lives of New Jersey’s residents more affordable, to reduce their cost of living and to provide tax relief for homeowners, renters, businesses, families and seniors. The governor’s proposal has no tax increases, tax relief for residents and businesses, no fare increases for NJ Transit, and fiscally effective investments in school aid and the pension fund.”
Republicans blasted the proposal. They said it’s unsustainable with a 5% increase from last year’s $50 billion budget and they want to see more permanent tax cuts.
“We support paying down debt, but we shouldn’t put billions into an opaque slush fund controlled by Democrat party bosses,” Republican State Senator Declan O’Scanlon said.
“There’s no guarantee any of the money will be used to pay down debt. It can just as easily be used to fund pork projects favored by Democrat bosses and falsely billed as ‘debt prevention.’ That remains true for billions in remaining pandemic relief funds as well. Transparency and oversight of the process for approving the use of these funds needs to increase substantially.”
New Jersey League of Conservation Voters executive director Ed Potosnak says there’s plenty to celebrate but he adds it doesn’t do enough to address the needs of low income families.
“We will continue to advocate with the legislature to end the Clean Energy Fund raids,” he said, “because the state is on firmer financial footing to finally end the clean energy raids and to establish permanent funding for NJ Transit.”