The Legislature’s deliberations over the next state budget started in earnest Monday, as state lawmakers began scrutinizing the budget proposal put forward by Gov. Phil Murphy last month.
The Assembly Budget Committee heard from state Treasurer Elizabeth Muoio about the Murphy proposal, as well as the legislature’s own top budget staffer, about the costs and funding mechanisms for a variety of programs.
Muoio touted Murphy’s plan to fully fund the state’s public schools, and the governor’s commitment to making a full payment on New Jersey’s pension. Affordability programs like ANCHOR and StayNJ were also held up as examples of innovative spending efforts.
Meanwhile, the state Office of Legislative Service’s legislative budget and finance officer warned lawmakers that New Jersey is facing a revenue shortfall in coming years — and that Murphy’s budget falls short of having the recommended surplus of 12%.
“The end of the road for the current financial trajectory is looming on the horizon,” said Thomas Koenig of the OLS. “The anticipated $6.1 billion surplus would represent only 11% of total Fiscal Year expenditures from the general fund and property tax relief fund.”
