Gov. Murphy unveils $44.8 billion proposed spending plan for New Jersey for next fiscal year
(The Center Square) – New Jersey Gov. Phil Murphy laid out a more than $44.8 billion spending plan for the 2022 fiscal year, one that increases spending but also anticipates revenue growth.
The budget includes more than $1.5 billion in new funding for pre-K-through-12 schools and more than $1.2 billion for “property tax relief programs.” It also incorporates a proposed $6.4 billion pension payment, an increase of $1.6 billion and what officials said is the first full contribution since 1996, and a $500 tax rebate to more than 760,000 families and individuals with qualified dependents.
The budget assumes a 2.4% growth in total revenue and includes a projected surplus of nearly $2.2 billion, slightly less than 5% of budgeted appropriations, officials said.
“So, this is my simple, clear message: New Jersey is done kicking problems down the road,” Murphy, a Democrat, said in unveiling the budget. “We are solving them.
“… This budget will continue to stabilize property taxes for hardworking families,” the governor added. “This budget will continue the hard work of moving forward – not only from the pandemic – but from years of neglect. Our problems weren’t created overnight and, frankly, they won’t be fixed overnight. But I know that brighter days lay ahead.”
Republicans quickly pounced on the proposal, saying the state is spending money it doesn’t have. In a statement, state Sen. Steve Oroho, R-Franklin, said the spending plan is an election year ploy for Murphy.
“The Governor’s budget is increasing spending by 11% since last year and by about 30% since he took office three years ago,” state Sen. Senator Declan O’Scanlon, R-Monmouth, said in a statement. “It’s fueled by one time windfalls of federal revenue, massive one-time borrowings, and spending down surplus. Much of the spending is for government growth including salary and benefit increases, new programs, and expanded programs.”
Garden State Initiative (GSI) President Regina M. Egea echoed that sentiment, saying incorporating “billions in borrowing and federally funded one-time infusions of cash as the basis for a budget bodes poorly for all New Jerseyans in the very near future.”
“As has been reported elsewhere that the state is suddenly flush with cash, New Jersey residents should ask themselves: ‘When was the last time you remember taxes actually going down?’” Egea said in a statement. “Unless there’s more borrowing or further federal bailouts, get ready New Jersey, you just got stuck with the bill. Make no mistake, your taxes just went up.”
New Jersey Business & Industry Association (NJBIA) President and CEO Michele Siekerka commended the governor for the increased pension payment but raised concerns about spending.
“If the proposed $44.8 billion number holds for FY22, it would mean New Jersey’s signed budgets will have increased more than 29% over the last four fiscal years,” Siekerka said in a statement.
“If the investments we heard today are to be sustainable in FY23 and beyond, our state will certainly need more fiscal discipline,” Siekerka added. “A reprieve from new taxes cannot be an election year special. Despite the strong pension payment put forth by the governor today, New Jersey’s pension and benefits system remains wholly unsustainable.”
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