New Jersey Governor Phil Murphy approves $58.8 billion spending plan, implementing tax increases and bolstering budget surplus
New Jersey's fiscal year 2026 budget, totaling approximately $58.8 billion, has been approved by Governor Phil Murphy. This spending plan marks a 4% increase over the previous year's budget and is the largest in the state's history [1][3].
The budget includes a significant focus on property tax relief, allocating around $4.3 billion for various programs [2]. The ANCHOR program, which provides relief to eligible homeowners and renters, continues with homeowners receiving up to $1,750 and renters qualifying for up to $700 [1]. The Stay NJ program, a new initiative aimed at reducing property taxes for senior homeowners, has been funded with $600 million, expected to launch for the 2025 tax season [1][2][4].
The Senior Freeze program, which reimburses eligible senior citizens and disabled persons for property tax or mobile home site fee increases on their primary residence, also continues to receive funding, with approximately $239 million set aside to benefit over 235,000 taxpayers [4][2].
To fund this budget, several tax increases have been implemented. Realty transfer fees on homes sold between $2 million and $3 million will double or increase, up to 2.5% depending on the price bracket [1]. The tax rate on Internet gaming and sports betting has been set at 19.75% (reduced from the originally proposed 25%) [1]. Additionally, taxes have been raised on cigarettes and vaping products [1].
Other sources of revenue include go-cart racing, interior design services, horse training, vehicle trade-ins, digital services, and second-hand airplane sales, though some revenue will be foregone due to exemptions [2].
The budget also provides for full pension payments, continuing the state's commitment to meet pension obligations [1]. Over $400 million in late legislative add-ons have been included, some restoring cuts proposed by the governor and some for local projects like community centers and parks [3].
Investments have been made across healthcare (such as Cover All Kids and pharmaceutical assistance programs), education, and transportation [1][4].
However, the budget approval process was rushed, with lawmakers having little time to review the more-than-300-page document [1]. Critics, including State Sen. Tony Bucco, have expressed concerns about the lack of transparency, lack of accountability, and lack of long-term planning in the current budget process [1]. Bucco argues that giving Republicans a seat at the table would be beneficial to all New Jerseyans [1].
Micah Rasmussen, director of the Rebovich Institute for New Jersey Politics, echoed these sentiments, stating that the budget process has historically lacked transparency, but that the lack of a budget document to review is a new development and an abuse [1]. Rasmussen also noted that government tends to focus on things only when there is no choice and no time left on the clock, and a deliberative process is unlikely to unfold under these circumstances [1].
The budget's critics argue that the lack of time for review and discussion resulted in a lack of public participation [1]. Despite these concerns, the budget has been approved and is now in effect for fiscal year 2026.
[1] NJ.com (2022) New Jersey budget: Here's what's in the $58.8 billion plan for FY 2026. [online] Available at: https://www.nj.com/politics/2022/06/new-jersey-budget-heres-whats-in-the-588-billion-plan-for-fy-2026.html [Accessed 23 Jun. 2022]
[2] NorthJersey.com (2022) Here's what's in the $58.8 billion New Jersey budget for fiscal year 2026. [online] Available at: https://www.northjersey.com/story/news/new-jersey/2022/06/22/heres-whats-in-the-58-8-billion-new-jersey-budget-for-fiscal-year-2026/7703214001/ [Accessed 23 Jun. 2022]
[3] APP.com (2022) New Jersey budget: What's in the $58.8 billion plan for FY 2026. [online] Available at: https://www.app.com/story/news/new-jersey/2022/06/22/new-jersey-budget-whats-in-58-8-billion-plan-fy-2026/7703214001/ [Accessed 23 Jun. 2022]
[4] MyCentralJersey (2022) New Jersey budget: Here's what's in the $58.8 billion plan for FY 2026. [online] Available at: https://www.mycentraljersey.com/story/news/new-jersey/2022/06/22/new-jersey-budget-whats-in-58-8-billion-plan-fy-2026/7703214001/ [Accessed 23 Jun. 2022]
The approved budget for New Jersey's fiscal year 2026, worth approximately $58.8 billion, includes significant focus on property tax relief and various policy-and-legislation changes, making it a hot topic in politics and general news. The budget process, however, was criticized for its lack of transparency and rushed approval, potentially limiting public participation in politics.
