TRENTON, N.J. (AP) — New Jersey Governor Phil Murphy, a Democrat, presented his final budget proposal on Tuesday, totaling nearly $58.1 billion. The budget includes increased funding for schools and public transportation but faces uncertainties due to potential federal funding challenges.
In his address to the Democratic-controlled Legislature, Governor Murphy highlighted the budget as a fulfillment of his campaign promises, emphasizing full funding for state worker pensions and consistent growth in K-12 education spending. He also outlined plans to allocate additional funds to support New Jersey Transit, a long-struggling public transportation system.
Acknowledging the ongoing uncertainties in Washington, Governor Murphy expressed the need to set aside over $6 billion in surplus to prepare for unforeseen obstacles. He underscored the importance of economic security as the top priority in the upcoming year.
Amid a freeze in federal funding and a looming debate in Congress over expenditures, the budget proposal faces potential risks. State Treasurer Elizabeth Muoio warned of possible cuts to federal assistance, particularly impacting programs like Medicaid that serve lower-income individuals.
The budget, which represents a 3.8% increase in spending compared to the previous year, will now undergo scrutiny by state lawmakers who must approve a balanced budget by July 1. Governor Murphy’s focus on prudent spending aligns with concerns over declining revenue streams, including projections of reduced corporate tax revenues.
Throughout his tenure, Governor Murphy has implemented progressive policies, such as tax hikes on high earners and the elimination of business tax cuts. His administration has prioritized increased funding for education, marking a significant departure from previous budget approaches.
If approved, the budget would establish a substantial surplus of $6.3 billion, underscoring Governor Murphy’s efforts to navigate the state’s financial landscape amidst ongoing challenges.
Governor Murphy and legislators have also pledged billions of dollars in property tax relief, which the proposal would implement. However, the sustainability of these benefits in future administrations remains uncertain without a dedicated funding source. New Jersey ranks among the states with the highest property taxes in the nation.
