Budget committees in both houses of the Legislature approved an expansion of New Jersey’s child tax credit Tuesday while action on a budget for the fiscal year that begins July 1 was put off for a day.
During a busy day of committee meetings that extended into the evening hours, lawmakers had no problem advancing a measure that calls for doubling the maximum child tax credit to $1,000.
In the Senate Budget and Appropriations Committee, members also unanimously approved a measure increasing “Anchor” property-tax relief benefits by $250 for both senior homeowners and renters.
The boost in “Anchor” benefits for seniors was a key part of an agreement that Gov. Phil Murphy and the top Democrats who control both the Assembly and Senate announced last week as they signaled a drama-free run-up to the start of a new fiscal year.
The same agreement also laid the groundwork for an altogether new property-tax relief program. Legislative leaders made that a top priority on the eve of this year’s legislative elections, which will see all 120 seats up for grabs in the fall. That program, dubbed “StayNJ,” will aim to cut property levies in half for many New Jersey seniors. But it is slated to start in 2026, and only if the state has the financial resources to do so without jeopardizing other fiscal priorities.
Why budget votes were delayed
Tuesday ended with lawmakers saying that the drafting of the fiscal-year 2024 spending bill and associated budget documents was still underway and that meant delaying introduction for a day.
As a result, members of both the Senate and Assembly budget panels are due to return to the State House on Wednesday afternoon to advance the spending bill. Doing so would keep it on schedule to be approved by both full houses by Friday.
If a new annual budget is not in place for the July 1 start of the new fiscal year, the state Constitution requires government to shut down until a spending plan is enacted.
‘Expanding these tax credits will go a long way in helping to pay for childcare and managing the rising costs of everyday life.’ — Senate Majority Leader Teresa Ruiz (D-Essex)
Earlier this year, Murphy proposed a $53.1 billion budget for the 2024 fiscal year that, among other things, would increase state aid for K-12 public schools and fully fund public-worker pension-fund obligations.
Trying to make NJ more affordable
Murphy, a term-limited Democrat, also called for expanding a child tax credit that was first established around this time last year for those earning up to $80,000 annually.
Under current law, those making up to $80,000 annually are eligible to receive credits worth between $100 and $500 per child under age 6. The legislation that cleared the budget committees in both houses Tuesday would increase the size of the credits to between $200 and $1,000 per child under age 6.
After Tuesday’s votes, sponsors said the proposed increase would reinforce a commitment to improve affordability for New Jersey families that began with the establishment of the tax credit last year. The tax-credit bill is now set for final approval before both full houses Friday.
“Expanding these tax credits will go a long way in helping to pay for childcare and managing the rising costs of everyday life,” said Senate Majority Leader Teresa Ruiz (D-Essex). “I look forward to continuing efforts to bolster our childcare infrastructure and bring resources to our most vulnerable residents.”
