What’s inside NJ’s ballooning budget?

Interview: John Reitmeyer, budget and finance writer, NJ Spotlight News

Briana Vannozzi, Anchor | May 28, 2025 | Under the Dome, Budget

Gov. Phil Murphy and lawmakers have just weeks left to hash out an agreement on state spending priorities and deliver a constitutionally mandated balanced budget.

NJ Spotlight News budget writer John Reitmeyer discussed the latest in the budget review process and what lies ahead in the coming weeks.

Reitmeyer said a key piece of this year’s debate is the overall size of the annual budget, which at $58.3 billion has grown to a record high during the Murphy administration. The key ingredients are increased spending on items like direct property-tax relief, public school aid, and public worker pension obligations, Reitmeyer said.

And they are the same big-ticket items still in play this year.

“We could start with direct property-tax relief,” Reitmeyer said. “Property taxes are at an all-time high in New Jersey, and it’s been a priority of this governor and Legislature to beef up spending on direct property-tax relief.”

Murphy’s proposed budget also calls for more than $12 billion in aid to K-12 public schools, and more than $7 billion to make a full payment on New Jersey’s public worker pension obligation.

“You add those up, and there’s the bulk of your budget,” said Reitmeyer. “We can tick off a bunch of these and that’s how you get a budget 10 years ago was in the mid $30 billion and now is creeping close to $60 billion.”

This report is made possible in part by the Corporation for Public Broadcasting, a private corporation funded by the American people.