With state coffers flush with cash, Gov. Phil Murphy proposed a nearly $49 billion spending plan — about 5% more than the budget for the last fiscal year — that includes no new taxes or fees. And with the coronavirus pandemic in retreat, Murphy addressed the full Legislature in person at the State House for the first time in two years. The main themes in Murphy’s budget message were fiscal responsibility and affordability for hard-pressed New Jersey taxpayers.
Education heads the big-ticket items in Murphy’s budget proposal — 40% of spending, and devoting $9.9 billion in aid to K-12 public schools, $650 million more than last year.
New Jersey’s tax revenues soared this year 10% above projections. And federal pandemic aid added billions more. It’s extra cash that Murphy would distribute to help ease the squeeze on residents burdened by the nation’s highest property taxes and soaring rents, with a new rebate program called ANCHOR. Republican lawmakers have proposed an alternative relief plan with an income-tax rebate for people earning up to $500,000. It would give $500 to individuals, $1,000 to families — and not wait until the 2023 fiscal year begins in July.
