Public pans spending cuts, tax hikes in governor's budget plan
A broad range of speakers asked lawmakers on the Assembly Budget Committee Wednesday to avert proposed spending cuts and prevent new fees and tax hikes proffered by Gov. Phil Murphy, or seek other ways of raising revenue.
The seven-hour-long hearing marked the public's first formal response to the governor's $58.1 billion budget proposal, which he unveiled last month. Lawmakers must pass and Murphy must sign a budget before July 1 to avoid a state government shutdown.
A range of witnesses urged legislators not to move forward with cuts Murphy has proposed to community college funding and social and disability services, and to block proposed diversions from the state's affordable housing trust fund.
'We're operating with limited staff. I sort the mail and I mop floors, and we all do multiple jobs when you're a small institution,' said Mike Gorman, president of Salem Community College.
The governor's budget proposes reducing state assistance to community colleges by $20 million and would reduce student financial assistance by $69 million, including by entirely eliminating a $20 million line item for summer tuition aid grants.
Other witnesses urged legislators to avert a $10 million cut proposed for Legal Services of New Jersey, whose attorneys provide representation to low-income New Jerseyans in civil matters.
'Despite our best efforts, the gap in resources necessary to provide legal services assistance to eligible low-income people remains vast, and the demand is just increasing,' said retired Supreme Court Justice Jaynee LaVecchia, who sits on the organization's board of trustees.
Housing advocates warned Murphy's planned diversions from the state's affordable housing trust fund — with $20 million of it headed for rental assistance and $40 million for down payment assistance programs within the New Jersey Housing and Mortgage Finance Agency, among other diversions — could imperil New Jersey's efforts to build more housing units.
'It's almost like robbing Peter to pay Paul. We love the affordable housing trust fund, we love HMFA, but we're just shifting the money from one pot to the other,' said Assemblywoman Verlina Reynolds Jackson (D-Mercer).
Additional money for the trust fund could come from an increased dedication from a higher tax on home sales Murphy has proposed, said Matthew Hersh, vice president of policy and advocacy for the Housing and Community Development Network of New Jersey.
The governor's budget would raise a 1% fee on home sales above $1 million to 2% and charge a 3% fee on home sales worth more than $2 million. Combined, that proposal is expected to bring in an additional $317 million in revenue.
Murphy has proposed a range of new revenue raisers for the next fiscal year, including higher tax rates on online gambling winnings, an expanded sales tax, and higher excise taxes on tobacco and alcohol products, among a raft of other higher fees.
Business groups cautioned those hikes and others, including a $2 per-truck fee on warehouses expected to generate $20 million, would make New Jersey less competitive. Murphy proposed a $1 per-truck fee last year, but the measure did not survive budget negotiations.
'Last year, just the proposal of a $1 truck excise fee was enough for one of our member businesses to lose a warehouse project to another state,' said Hilary Chebra, director of government affairs for the South Jersey Chamber of Commerce. 'The reintroduction of this truck fee, now at $2 a truck, will not only make New Jersey a less favorable place to do business, it will make goods more expensive for residents across the state.'
Some others urged the state to expand the types of tax and fee hikes it would consider to prevent cuts.
'We will need higher revenues to avoid the kind of cuts that we're talking about, because as much as this year's budget is challenging — and I think we can all say there are going to be difficult decisions that have to be made — next year's budget is lining up to be a potential disaster,' said Peter Chen, senior policy analyst for progressive think tank New Jersey Policy Perspective.
Those revenue raisers should target high-earning individuals and corporations, Chen said.
Murphy's proposed budget calls for the state to spend $1.2 billion more than it takes in through taxes and other revenue sources. Absent broader budgetary changes, that deficit would expand by at least $920 million next year to pay for a full-year benefit under the Stay NJ Property tax relief program.
Numerous speakers raised concerns about the possible loss of federal funding amid the Trump administration's far-reaching efforts to limit U.S. government spending.
The governor's budget anticipates roughly $26.2 billion in federal funding for the coming fiscal year, though administration officials have cautioned uncertainty around those forecasts because of unpredictability at the federal level.
It's not likely all federal funding will go away, though congressional Republicans are exploring cuts to Medicaid, which at $14.4 billion accounts for the lion's share of the state's federal funding.
Gov. Murphy's potential successors explain their budget priorities if elected governor
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Fox News
21 minutes ago
- Fox News
WATCH LIVE: California State Assembly considers Democrat-backed redistricting efforts
California state Democrats are pushing new redistricting efforts as a new Trump-backed congressional map makes its way through the Texas legislature.
Yahoo
2 hours ago
- Yahoo
N.J. orders investigation into why residents' energy bills are soaring
Gov. Phil Murphy signed a law Friday requiring the state's Board of Public Utilities to investigate PJM Interconnection, New Jersey's primary grid operator, amid increasing energy costs. Many New Jersey consumers got a shock this year when they found out that their energy bills would be going up by as much as 20% in the middle of a historically hot summer. 'These bills complement our long-term plan of action to hold PJM responsible for hardworking New Jerseyans' skyrocketing electricity bills and a lack of new energy generation,' Murphy said. 'We are committed to creating a system that is fairer and more transparent for customers and the states that represent them — a necessary change from the opaque practices that have, for too long, defined PJM.' MORE: My energy bill is insane! How recent price hikes, temperature spikes are hurting N.J. residents. PJM officials said they are being unfairly blamed for the cost increases. 'We understand the political motive to shift blame for high electricity bills, but the fact remains: PJM operates as a not-for-profit that plans the power grid and administers federally regulated wholesale electricity markets,' PJM said in a statement. 'Pointing fingers will not solve the supply-and-demand realities driving higher prices for consumers in New Jersey, including challenges that stem from failed policies. Our focus remains on working toward real solutions, because New Jerseyans deserve nothing less,' the statement said. Multiple factors have been blamed for the price increases. Increased energy costs have been cited as a factor by PJM. Democrats have charged that PJM failed to responsibly plan for infrastructure upgrades to the network. Republicans criticized the state's use of alternative energy, asserting it doesn't generate as much power as traditional forms and is more expensive. Others allege increasing industrialization, including the use of high-energy data centers, are driving up demand and costs. The issue has become a big topic in this year's race to succeed Murphy as governor and as all 80 seats in the state Assembly are on the ballot in November. The state has recently started offering energy bill credits to offset some of the costs. MORE: N.J. greenlights $100 electric bill credit for every customer, grants more money for some The bill signed by Murphy on Friday, A5643, directs the state Board of Public Utilities to investigate PJM over an auction process in which suppliers submitted bids to provide energy. The state board oversees the auction but has little direct authority over the pricing. 'The energy auction that is the principal cause for the spike in utility bills is clearly broken and in desperate need of reform,' said state Sen. John Burzichelli, D-Gloucester, one of the bill's sponsors. 'It failed to make consumer affordability a priority, put a chokehold on the energy supply line and is susceptible to manipulation,' Burzichelli said. 'This investigation is needed to identify the specific causes and determine the reforms needed to reduce costs and increase the supply of new energy. It will bring more accountability to the process and better protect ratepayers from unjustified utility bills.' The investigation can take up to a year, under the plan. That means New Jersey's next governor will likely have to address what to do with the results of the investigation. State Assemblyman Alex Sauickie, R-Monmouth, who serves on the telecommunications committee, asserted the Murphy administration was deflecting blame. 'First off, nobody even knows what PJM is, nor do they need to because the cause of skyrocketing energy bills lies with the Governor and the Democrat-controlled legislature,' he said. 'Instead of pointing fingers, we should be focused on increasing supply which is down 20% under this governor,' Sauickie said. 'For eight years, state Democrats have driven supply down with their radical green agenda while electrification policies drive up demand. These new laws won't lower electric bills, won't add a single kilowatt to the grid, and won't address the affordability crisis hitting families right now.' Murphy is in his last year as a term-limited governor. The bill was approved with a vote of 25-12 in the state Senate and 57-23 in the Assembly. Jelani Gibson may be reached at jgibson@ Solve the daily Crossword
Yahoo
4 hours ago
- Yahoo
What to know about Nebraska-ICE plan to retool McCook Work Ethic Camp
Nebraska State Patrol Superintendent Bryan Waugh, at podium, joins Nebraska Adj. Gen. Craig Strong at left and Nebraska Department of Correctional Services Director Rob Jeffreys as the state announces a new ICE facility. Aug 19. 2025. (Juan Salinas II/Nebraska Examiner) LINCOLN — State lawmakers are 'learning on the go' about Nebraska's plan to transform its McCook-based Work Ethic Camp from a rehabilitative center to a migrant detention facility over the next couple of months. Among major still-unanswered questions: What will the immediate impacts be of shoehorning more inmates from the McCook center into other placements in an already overcrowded prison system? Confirmed information from Nebraska Department of Correctional Services Rob Jeffreys includes comments Tuesday to reporters that his department would continue to ensure safety and provide care to anyone housed in state facilities. The repurposed Work Ethic Camp would still be state-owned and operated — 'because homeland security starts at home.' 'We're in the business of corrections, so it's just another population for us to manage,' Jeffreys said. 'We provide the services. We provide adequate, humane care.' Jeffreys has indicated that the 186 Nebraskans currently housed at the McCook facility will be moved over roughly the next 45 to 60 days to other prisons. The specifics have not been ironed out. The federal government would fully reimburse Nebraska to house federal low-to-medium-risk detainees at the revamped Work Ethic Camp with plans to grow to accommodate up to 300 detainees at a facility designed to hold about 200, which would mean repurposing existing spaces used for meetings and other programming. The Work Ethic Camp, legislatively approved 41-1 at the request of McCook native and then-Gov. Ben Nelson in April 1997 and opened four years later, seeks to reduce prison crowding through rehabilitative programming to low-risk offenders, making space for more violent offenders elsewhere. The facility has served adult men convicted of felonies who need substance use treatment or cognitive restructuring, according to budget documents from September 2024. It had an annual state budget of $9.5 million during the most recent fiscal year, 56% of which was for security. The facility has about 85 staff. Nebraska's ICE facility 'symbolic' of state's support for immigration enforcement push The Examiner contacted Correctional Services, the Office of Gov. Jim Pillen, all eight members of the Legislature's Judiciary Committee and other officials to learn more about next steps after officials announced multiple state-federal partnerships to ramp up immigration enforcement. Perspectives among responding officials differed largely along ideological lines, including in the officially nonpartisan Legislature, the only statehouse where lawmakers are not formally elected by or organized around party affiliation. The U.S. Department of Homeland Security is rebranding the repurposed Work Ethic Camp facility as the 'Cornhusker Clink,' according to Pillen and U.S. Secretary of Homeland Security Kristi Noem. Jeffreys said he wants it to be the 'Midwest hub' for immigration enforcement. State Sen. Victor Rountree of Bellevue, one of two Democratic lawmakers representing legislative districts that President Donald Trump won in 2024, said his immediate concerns were about managing the state's existing prison population. That includes how Correctional Services is retooling after an August windstorm tore the roof off two Nebraska State Penitentiary housing units in Lincoln. A total of 387 inmates were displaced to temporary housing, with 137 sent to other facilities in Omaha or Tecumseh. Some have since been moved back into normal housing. Inmates are expected to be able to safely return to State Pen housing by the end of September. Rountree said the moniker 'Nebraska, the Good Life' is now paired with immigration enforcement efforts that he said differ from Trump's promises to go after criminals. He said other migrants with no criminal backgrounds have been swept up, causing 'a disruption to the people of our community.' The freshman lawmaker said he approaches his purple district from a 'humanitarian viewpoint' and as a 30-year military veteran who understands the impact of law. 'There's a place for the rule of law to exist along with humanitarian effort,' Rountree said. State Sen. Terrell McKinney of North Omaha, who has served on the Judiciary Committee for five years, said he strongly opposes the repurposed McCook facility. 'Our prisons are already poorly managed, overcrowded and plagued by substandard living conditions,' McKinney said Tuesday in a Facebook post. 'No one should be subjected to such inhumane treatment.' State Sen. Danielle Conrad of Lincoln, a former director of the ACLU of Nebraska, a Democrat and a former Appropriations Committee member, questioned Pillen's legal authority to create the new ICE facility under the Nebraska Constitution's Article IV, Section 19. Since 1875, the Nebraska Constitution has given the Legislature exclusive authority in the 'general management, control and government of all state charitable, mental, reformatory and penal institutions.' State Sens. Tanya Storer of Whitman and Bob Hallstrom of Syracuse, Republican freshman members of the Judiciary Committee, said they were more confident in the federal direction. 'I think if Nebraska is in a position to help be part of that effort in a positive way, that's a good thing,' Storer said. Storer said she had a briefing on the plan to repurpose the Work Ethic Camp about an hour before it was made public. She said she learned the project could bring additional federal dollars to Nebraska without any additional state taxes. State Sen. Rob Clements of Elmwood, chair of the Legislature's budget-writing Appropriations Committee, said he was told reimbursements would lead to cost savings, the extent of which is not yet clear. Hallstrom said he is still 'learning on the go' but highlighted Pillen's pledge that safety and protection of citizens would be a 'primary goal and objective.' Storer said she doesn't think the repurposing would hinder legislative or department efforts to reduce recidivism, address overcrowding or boost the chances for successful societal reentry for inmates. 'We were assured that there is space available within our system to individuals without creating any hiccups,' Storer said. 'It appears that this has been well thought out.' Hallstrom said he also raised questions about space initially but is so far satisfied. He said he hopes the rehabilitative objective from McCook stays, such as Jeffreys engaging business leaders to do so. He added he hopes any ICE detainees will be treated humanely. 'I certainly trust and hope that that will be the case with whatever's rolled out here over the next however long it takes to get things put together,' Hallstrom said. State Sen. Carolyn Bosn of Lincoln, a former prosecutor and chair of the Judiciary Committee, told the Examiner: 'I'm still learning about the WEC situation, so it's premature for me to comment on the plan.' The contract between Nebraska and the federal government is still ongoing, with Jeffreys saying Tuesday it could be an initial one-year commitment or longer, possibly three years. He said he didn't 'want to get baked into a timeline with them before we take care of our own house,' acknowledging that the August windstorm put the department behind. Jeffreys said 'the timeline got ahead of us' for announcing the state-federal partnership, with Correctional Services staff finding out as the public did of the transition. He pledged to remain transparent with his team moving forward. As the McCook offenders move into other facilities, Jeffreys said Nebraska inmates are involved in programming 'like it's never been done before,' so he's not worried about violence. He said the prison system remains committed to ensuring fair treatment, programming and that Nebraskans are ready to reenter society. If the ICE facility remains under Correctional Services' control, it would likely be subject to legislative oversight, including complaints through the Ombudsman's Office or the Office of Inspector General for Corrections. Conrad, the longest-serving current member of the Legislature, said lawmakers share a Pillen-Trump goal of addressing public safety and a 'broken' immigration system. But she said the 'political stunt' Pillen is doing to 'curry favor' with an 'autocratic' president isn't the way. 'We know that the way to solve those problems is through sensible, comprehensive immigration reform, where we respect human rights and we meet our country's economic needs, and we don't conflate those who are seeking a better life for them and their families or are fleeing persecution with true threats to public safety or national security,' Conrad said Wednesday. Conrad said it remains to be seen if there will be any savings to Nebraska or if rehabilitation and second chances will still be afforded to rehoused Work Ethic Camp inmates, if they are moved into facilities 'bulging at the seams.' A corrections spokesperson told the Examiner 'a robust offering of rehabilitative opportunities' is available at all NDCS facilities. She also noted the department will add 96 beds to its Reception and Treatment Center in Lincoln this fall. Pillen has said he is stepping up to answer Trump's call for governors and states to do their part to enforce immigration laws and fulfill the 'highest calling' of government: public safety. A Pillen spokesperson said the alternative is 'failed Biden-era open border policies.' Conrad encouraged Pillen to 'pray deeply' on his decision and visit with faith, business and ag leaders and embrace a past willingness to change course when met with new perspectives. 'It's never too late to press pause,' Conrad said, 'and to come forward with a more serious, thoughtful proposal that's grounded in the law and our Nebraska values.' State senators approved the Work Ethic Camp by 41-1 at the request of former Gov. Ben Nelson in April 1997. It opened four years later in April 2001. The Nebraska-federal 'mutual agreement' to repurpose the McCook Work Ethic Camp came partially because of its proximity to other states. State officials hope it can be a 'Midwest hub' for ICE. It is right next to the McCook Ben Nelson Regional Airport. The current southwest Nebraska prison serves adult men serving felony convictions with rehabilitative opportunities, including local work in a dormitory-style setting, as a means to free up housing for more violent offenders at higher-security state facilities. The U.S. Department of Homeland Security is rebranding the revamped facility the 'Cornhusker Clink,' following 'Alligator Alcatraz' in Florida and the 'Speedway Slammer' in Indiana. Low-to-medium-risk detainees would be housed and provided services between deportation or other legal proceedings at the repurposed Work Ethic Camp in McCook. It's unclear if the facility would remain all male or whether women, children or families would be detained there. Gov. Jim Pillen at a Tuesday news conference in McCook said, 'I'll be honest, I'm not a politician. I've not thought about that. I've not asked that question.' There are 11 lawyers with active licenses in Red Willow County (McCook is the county seat), according to the Nebraska State Bar Association. State officials estimate that they will move the current McCook inmates to other state facilities over the next 45-60 days. Housing placements have not yet been decided. Parole board hearings and reviews will continue as normal for state inmates at McCook. Whether corrections employees offering job and other counseling programs would remain in McCook, or be transferred to other state facilities, will depend on contract negotiations. Pillen has said many would remain. The federal government would reimburse Nebraska for the use of the McCook facility, which would remain state-owned and operated. The contract is still in progress but would be for at least one year. An early August windstorm tore the roof off of two housing units at the Nebraska State Penitentiary in Lincoln, displacing 387 inmates. Of those, 137 were sent to temporary housing at agency facilities in Omaha and Tecumseh. Some have returned to normal housing. The damaged housing units are expected to be usable by late September. State officials say they are not concerned with overcrowding, noting nearly 100 new beds will open up at the Reception and Treatment Center in Lincoln this fall. — Cindy Gonzalez, Zach Wendling and Juan Salinas II SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX Solve the daily Crossword