Facing reelection later this year, top Democratic legislative leaders are pitching a plan to effectively halve property-tax bills for New Jersey’s senior homeowners, starting in 2025.

But standing in the way right now are Gov. Phil Murphy and concerns about the cost and structure of such a program, as well as questions about whether it can even be implemented by state government.

Murphy, a second-term Democrat who is not up for reelection, has the power to veto any measure that comes out of the Legislature.

That leaves the fate of what’s been dubbed the “StayNJ” program — at least in its current form — very much in question with its first committee review scheduled for Thursday in the Assembly.

Introduced by Assembly Speaker Craig Coughlin (D-Middlesex) last month, the senior property-tax relief measure was recently endorsed by Senate President Nicholas Scutari (D-Union).

The legislation has since drawn other key Democratic leaders in both the Assembly and Senate as co-sponsors and calls for, among other features, providing senior homeowners with up to $10,000 in direct property-tax relief credits each year.

The Murphy administration has also raised concerns about whether it will be able to administer a new program that has the potential to significantly change the way seniors currently apply for and receive tax relief through other state-funded programs.

But before any votes have been cast, Murphy went public with a number of concerns about the legislative proposal, including the potential cost of establishing a new state-funded relief program. Current estimates range well above $1 billion annually.

Moreover, the legislative leaders want to create the new relief program at a time when the latest revenue forecasts — including those drafted by the Legislature’s own nonpartisan fiscal analysts — have been scaled back, for both the current fiscal year and the one that begins July 1, by a combined more than $2 billion.

Meanwhile, the administration has also raised concerns about whether it will be able to administer a new program that has the potential to significantly change the way seniors currently apply for and receive tax relief through other state-funded programs, including “Anchor” and “Senior Freeze.”

Those existing programs, which eligible seniors can collect benefits from in the same calendar year, operate under different application schedules and with different income requirements that ensure relief is somewhat targeted.

Benefits are also generally provided through a check or direct deposit under the existing state-funded programs, but “StayNJ” would require the administration to work with municipal tax collectors throughout the state for the proposed relief to be distributed through direct credits on quarterly tax bills.

Coughlin’s plan also calls for establishing a new, combined application that would be used to determine whether a senior homeowner would fare better under Anchor and Senior Freeze, or the proposed “StayNJ” tax credits.

Too complicated?

In response to a series of questions posed by NJ Spotlight News, Murphy spokeswoman Jennifer Sciortino said the proposed new program would be “very difficult, if not impossible to administer.”

“In fact, it would require an incredibly complicated application, that would ultimately provide the wealthiest seniors with four times the benefit of those trying to live on a fixed income of $50,000,” she said.

Murphy himself has flagged “StayNJ” for seeking to give senior homeowners at all income levels state-funded tax credits worth up to $10,000 annually. That would mean the most generous benefits would generally go those owning the most expensive homes.

‘New Jersey homeowners and renters are feeling the strain of paying the highest property taxes in the nation — taxes that are interfering with our residents’ ability to age in their own homes.’ — Ev Liebman, director of advocacy for AARP New Jersey

According to Sciortino, the administration estimates 18,000 seniors making over $500,000 would receive credits worth about $8,000 under Coughlin’s plan, while no new benefits would be provided to senior tenants who pay property taxes indirectly through their monthly rent.

In addition, an estimated 84,000 lower-income seniors “would receive no new benefit” at all under the current proposal, she said.

Also criticizing the “StayNJ” plan has been the influential New Jersey Policy Perspective think tank.

Among its chief concerns is the potential cost of the program, as well as the threat that funding the new tax credits could pose to other public programs and services for seniors that are also funded through the state’s annual budget.

In a recent analysis, the Trenton-based think tank also faulted the proposal for favoring those living in expensive homes over senior tenants.

“There are more effective and efficient ways to target relief to the seniors who are struggling the most with high housing costs, grocery bills, and prescription drug prices,” said NJPP senior policy analyst Peter Chen.

Addressing affordability in NJ

At the same time, however, AARP-New Jersey has applauded Coughlin for focusing on the affordability issue. The group also noted in a recent public statement that the organization’s own polling found many older New Jersey residents have considered leaving the state, with the cost of property taxes identified as a key concern.

“New Jersey homeowners and renters are feeling the strain of paying the highest property taxes in the nation — taxes that are interfering with our residents’ ability to age in their own homes,” said AARP-New Jersey’s director of advocacy, Ev Liebman.

The first official votes on the “StayNJ” legislation are set to be cast Thursday during a meeting of the Assembly’s Aging and Senior Services Committee. Also on the committee’s agenda are bills seeking to ease other costs for seniors, including health care and prescription drugs.

Asked for a response to Sciortino’s criticism, Assembly Majority spokeswoman Maggie Garbarino noted Coughlin’s legislation creates an implementation phase of as long as 18 months.

‘We have outstanding relations among the speaker, the Senate president and my team and I, and so that’s a really good place to start. And we all care about seniors.’ — Gov. Phil Murphy

“This is a generous amount of time to address logistical issues with providing tax relief to seniors, and we look forward to working with the Administration and members of the Legislature to achieve that goal,” Garbarino said.

In addition, she said Coughlin’s plan would also create a “streamlined, single application that will be easier for people to understand, and the relief will go directly onto a property tax bill instead of requiring seniors on a tight budget to pay property taxes and wait months for a rebate.”

The intraparty disagreement over senior property-tax relief has the potential to bog down budget negotiations in the run-up to the July 1 start of a new fiscal year in New Jersey. But Murphy told reporters earlier this week that he is “very optimistic that we’ll find a way to go forward.”

“We have outstanding relations among the speaker, the Senate president and my team and I, and so that’s a really good place to start. And we all care about seniors,” Murphy said.