Latest news with #StayNJ
Yahoo
14-05-2025
- Business
- Yahoo
Budget experts tell lawmakers revenue projections are up, but there's no windfall
Treasurer Liz Muoio told lawmakers Wednesday that the state is entering the new fiscal year "with a solid foundation while keeping an eye on national and international economic developments." (OIT/NJ Governor's Office) The state's fiscal forecasters nudged up revenue projections for the current and coming fiscal year after receiving April tax filings, but the minor shifts reflect predictions of slow growth and broad uncertainty over the future of federal funding. Officials with the Treasury and the nonpartisan Office of Legislative Services both projected New Jersey would bring in $57.1 billion in the fiscal year that begins July 1, up from the $56.8 billion forecast by the Treasury in early April and roughly in line with the legislative office's prior estimates. Gov. Phil Murphy's proposed budget calls for about $58.4 billion in spending for the next fiscal year. Treasurer Liz Muoio told the Assembly's budget committee Wednesday that the positives of the spring filing season outweigh the negatives. 'We will enter the new fiscal year with a solid foundation while keeping an eye on national and international economic developments,' Muoio said. 'As you are all aware, we continue to face massive budgetary uncertainty at the federal level.' Revenue projections for the current fiscal year, which ends June 30, rose by similar levels. The Treasury estimates an increase from $54.9 billion to $55.3 billion, and the Office of Legislative Services' projections increased from $55.3 billion to $55.4 billion. The increases are too modest to significantly ease fiscal planning in a budget year officials have repeatedly called difficult, though absent later changes to state spending, they will nominally increase state reserves projected for the end of the next fiscal year from $6.3 billion to $6.7 billion. That level of surplus would again leave New Jersey's reserves below 12% of spending, which could spell trouble for the nascent tax relief program called Stay NJ, which promises to halve senior citizens' property tax bills and is set to begin issuing payments in the next fiscal year. Statutory language requires a pause to Stay NJ payments if the state's surplus dips below 12% of spending, though lawmakers can overwrite that requirement through budget language. The Treasury has updated costs for certain health care and other programs in Murphy's budget proposal, nudging them up by a combined $306.8 million. The state's deficit — the degree to which spending outpaces revenue — remains a projected $1.2 billion for the next fiscal year. The boost to Treasury's current-year revenue projections was attributed largely to strong personal income tax performance in April, particularly on capital gains. Officials cited a 9.9% growth rate for the gross income tax in the current fiscal year but said its growth would moderate to 2.7% in the next. Muoio said corporate business tax collections were down 18%, year-over-year, with 60% of that decline due to businesses writing off operating losses in line with a 2023 law changing how business income is calculated for tax purposes. Those declines should taper off in future years, but were expected to reduce collections under the state's corporate transit fee from $867.5 million to about $814 million in the next fiscal year. Save a 6% constitutional dedication for open space, revenue from the corporate transit fee in future fiscal years is required by law to flow to NJ Transit. Officials predicted slow growth for New Jersey's existing revenue sources. The Office of Legislative Services' projections say existing revenue would increase by only 1.1% in the coming fiscal year, though tax and fee increases proposed by Murphy would bring overall growth to roughly 3.4%. 'Achieving even this modest growth depends on the continued strength of the state's consumer spending and employment, which thus far have remained resilient. Nonetheless, it is important to recognize that downside risks remain,' said Oscar Mendez, revenue and economic policy analyst at the Office of Legislative Service. Legislators, including top members on budget committees, have expressed resistance to the proposed tax hikes, which include an expansion of the sales tax to include services at recreational businesses, higher taxes on casinos' gambling winnings, and larger surcharges on the sale of expensive homes, among other things. 'I want to make it clear to everybody who's listening to this. There's no desire from this Legislature to tax those services,' Sen. Paul Sarlo (D-Bergen), the Senate's budget chair, said at an April hearing. 'I think they were a talking point by the governor. I think the governor realizes those will be eliminated.' Persistent uncertainty about the future of New Jersey's federal funding amid broad, unpredictable shifts in federal policy left considerable flex in the state's revenue projections. New Jersey was set to receive $26.2 billion in federal funding for the next fiscal year, and it's unclear how congressional Republicans' proposal to cut more than $818 billion from Medicaid and other programs will affect New Jersey's federal funds. Thomas Koenig, the legislative budget and finance officer at the Office of Legislative Services, said things could turn out well, but he added, 'We are concerned there is a larger than usual downside risk to our forecast.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
17-04-2025
- Business
- Yahoo
Should new senior citizen tax cut plan stay or go? Governor candidates are split
Senior citizens are expected to begin getting Stay NJ tax credits next year — but the 11 people hoping to be our next governor are split on whether the program will work. (Illustration by Alex Cochran for New Jersey Monitor) New Jersey's next governor may inherit a new property tax cut program aimed at seniors, but the candidates don't all embrace it as is. Some of the 11 candidates hoping to become our next chief executive say income limits for the program — called Stay NJ — are too generous. Others worry the state's uncertain fiscal outlook makes the program unfeasible unless it's revamped. One candidate, Republican Bill Spadea, called Stay NJ a 'gimmick' that should be eliminated outright. 'We cannot continue with smoke and mirrors that shift the tax burden from one group to another while calling it a tax cut,' Spadea said in a statement from his campaign. Democratic lawmakers have been promising Stay NJ for years, saying it will be essential to keep senior citizens from fleeing to states with lower taxes. But budget experts have issued private and public warnings about the program's price tag, which is expected to top $1 billion annually. 'The state just can't afford to pay for it,' Richard Keevey, a former state budget director and comptroller, told the New Jersey Monitor. StayNJ was signed into law by Gov. Phil Murphy in 2023, but it is not scheduled to begin delivering payments to eligible taxpayers until 2026. The program will offer homeowners 65 and over tax credits to make up for half of their property tax bills, capped at $6,500. Homeowners must make less than $500,000 annually to qualify. Stay NJ payments could go out just as a new governor takes office in January. Murphy, a Democrat, cannot seek a third term this November, and six Democrats and five Republicans are running to succeed him. Newark Mayor Ras Baraka, a Democrat, has called Stay NJ 'inherently flawed and regressive.' In a statement from his campaign, Baraka said it 'must be overhauled or dismissed,' and took aim at the program's half-a-million-dollar income limit. 'We need to direct government resources toward lifting all boats, not just those already floating comfortably. That means capping rents, building more housing, and investing in real solutions for affordability across the board. Our state budget should reflect our values: working people, not the wealthy, should be first in line for help,' he said. Two of Baraka's Democratic rivals — Jersey City Mayor Steve Fulop and Rep. Mikie Sherrill — noted that statutory language bars the state from issuing Stay NJ payments if certain fiscal goals are not met, like maintaining a surplus that is at least 12% of annual spending (lawmakers could override that provision, and did last year). Speaking at a press conference in Edison this week, Fulop said 'of course we're not going to stand in the way of a 50% tax reduction for residents' if the state finds a way to fund Stay NJ while keeping its surplus above 12%. But the more likely outcome, he said, is that the program won't work. Fulop has proposed either restructuring Stay NJ by lowering the income threshold to $150,000 and making the award a flat amount based on income rather than a percentage of property taxes paid, or implementing a new program to provide all homeowners with a single tax credit that limits a homeowner's property taxes 'to an affordable percentage of their income.' 'We're going to clean that up to make sure there's real property tax reform for residents here throughout New Jersey,' he said. Sherrill told reporters in Bloomfield last month that she thinks StayNJ is a 'great program' for seniors. But in a statement from her campaign on Wednesday, she noted the state's budget issues. 'We have no way to know what state revenues will look like in 12 to 15 months or how much needed federal funding will be ripped away by Trump. However, there are things we must do like fully fund the pension system and protecting direct property tax relief is of equal importance. It is the most direct way our state government can create affordability for New Jerseyans,' Sherrill said. Rep. Josh Gottheimer (D-05) has pledged to cut all New Jerseyans' property tax bills by a dramatic 15%. Gottheimer in a statement from his campaign said he supports Stay NJ, but wants to add additional tax relief, including a $1,000 'senior bonus' for seniors who have lived in New Jersey for at least a decade before turning 70 and an annual tax rebate for renters. 'I'm the only candidate with a tax cut plan that meets our pension obligations, tackles our structural deficit, and is fully paid for without cutting the important programs and services Jersey families and seniors rely on,' he said. Democrat Sean Spiller, president of the statewide teachers union, said he supports StayNJ. Spiller said in a statement from his campaign that he wants to streamline the state's multiple tax credit programs and make sure benefits get to people who need them most 'without the challenging layers of bureaucracy and redundancies.' Stay NJ benefits would be paid out only if homeowners do not already see their tax bill cut in half by the existing Anchor and senior freeze tax relief programs. Former state Sen. Steve Sweeney, a Democrat, announced Wednesday he wants to slash the income limit for Stay NJ to $250,000 and eliminate income tax for seniors 65 and up with annual incomes of $250,000 or less. He calls his plan 'Stay NJ Plus.' 'Our seniors deserve the peace of mind that comes with financial stability,' Sweeney said in a statement from his campaign. 'By capping the Stay NJ program at $250,000, we can ensure a fair distribution of resources while continuing to support the goal of keeping our cherished residents in their homes.' Republican Mario Kranjac, a former mayor of Englewood Cliffs, is open to keeping Stay NJ on a transitional basis,' but if elected governor, he would aim to cut spending and slash taxes, 'making the State more affordable for everyone without special programs primarily designed to buy votes,' said his campaign manager, Michael Byrne. Republican state Sen. Jon Bramnick said he supports Stay NJ and believes senior citizens deserve tax relief. 'I still support the program but if the Democrats were truly serious about reducing the property tax burden they would have started the program immediately, not three years after passage,' Bramnick said. Former Assemblyman Jack Ciattarelli, a Republican, did not respond to a request for comment. Dana DiFilippo contributed. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Politico
26-02-2025
- Business
- Politico
The uncertain budget
Presented by Good Wednesday morning! The proposed budget is in. Gov. Phil Murphy yesterday outlined a $58 billion spending plan with a large $6.3 billion surplus. There were no radical new proposals in this budget, and no massive spending cuts despite facing down a deficit. Even the StayNJ senior property tax reimbursement plan, whose eventual $1.2 billion price tag has made it a potential burden for the next governor, is getting fully funded. The one overarching message of the governor's budget address was 'uncertainty' — a word he used five times, mostly referring to the Trump administration. New Jersey gets about $27 billion in federal funding, about half of which goes to Medicaid for nearly 2 million New Jerseyans. 'I think it's safe to say that we are facing more uncertainty — at the federal level — than at any other point in modern history,' Murphy said. The budget includes $1.2 billion in tax and fee hikes, partly on vices like internet gambling, smoking (weed and tobacco) and drinking. But it also would double the current 1 percent 'mansion tax' fee on home sales of over $1 million (these days in New Jersey, a million dollar house is not synonymous with 'mansion'), and increases it to 3 percent on home sales of over $3 million — just after some in the real estate industry were hoping to repeal or reduce the tax. And while it doesn't raise the sales tax itself, it un-exempts and un-caps several things, like boats and car trade-ins and, for some reason, horse training. Once again, the governor has broken a pledge to not raise taxes he made during the gubernatorial debate in 2021. And Murphy, who has a surprisingly decent relationship with President Trump, promised pushback against his policies when it comes to LGTBQ rights, migrants and abortion. He also took a shot at Trump for pardoning all the Jan. 6 rioters. 'I will also never back down from defending our police officers — like South River native Brian Sicknick — instead of pardoning the violent mob that assaulted them,' Murphy said. Still — and I don't know whether this should be read as a measure of Murphy's political ambition — Murphy's speech didn't hit an anti-Trump message as aggressively as Illinois Gov. JB Pritzker, who compared the Trump administration's actions to the rize of the Nazis in Germany. Read more here from Ry Rivard and Daniel Han HAPPY BIRTHDAY: AnneMarie Devito, Paul Fishman, Quinton Law, Taneshia Nash Laird, Jason Springer. WHERE'S MURPHY? No public schedule QUOTE OF THE DAY: 'He's a man of good humor' — State Sen. Declan O'Scanlon on Gov. Murphy, who responded to O'Scanlon's criticism of Murphy's budget as 'slathering gallons of lipstick on a pig' by handing O'Scanlon some lipstick on the Assembly floor TIPS? FEEDBACK? Email me at mfriedman@ WHAT TRENTON MADE I WILL NOT TAKE THE BAIT AND MAKE A JOKE ABOUT THIS — Republicans warn governor's budget plan will leave New Jersey in 'an enormous hole', by New Jersey Monitor's Dana DiFilippo: 'Gov. Phil Murphy for months has called for cuts in state spending but offered a bloated budget proposal packed with unnecessary new spending, Republican legislative leaders said Tuesday after the governor's annual budget address. The record-high $58.1 billion budget proposal perpetuates the state's structural deficit and leaves a surplus that would take the state just 39 days to burn through, said Sen. Anthony Bucco (R-Morris). New programs like Stay NJ, a tax break for seniors that will cost more than $1 billion a year when it's fully phased in, just add to that structural deficit, Bucco said. 'This next governor is going to be left with an enormous hole to fill. And you know what they say: When you're in a hole, stop digging. Well, this governor keeps going deeper and deeper and deeper, and it's going to be that much harder for the next governor to be able to move that program forward,' Bucco said … They also objected to new or expanded taxes and fees Murphy has proposed, including on firearms, drones, and alcohol.' COMING SOON: THE SUMMER OF HEAVEN — 'Murphy budget gives cash-strapped NJ Transit major infusion from new corporate tax,' by The Record's Colleen Wilson: 'The first infusion of a new state corporate transit fee would more than double state aid for NJ Transit in the coming fiscal year, according to Gov. Phil Murphy's budget proposal revealed Tuesday. The Treasury Department estimates NJ Transit will receive about $815 million from the corporate transit fee in fiscal year 2026… If the state Legislature were to pass Murphy's proposed 2026 budget as is, NJ Transit would receive a combined $1.44 billion in state revenue to support its budget, more than double the $670.1 million the agency received in the current fiscal year.' —Murphy wants to poach OB-GYNs from other states —'In the Trump era, crafting a state budget becomes more complicated' —'Murphy's budget proposal includes $1M for Platkin's legal war against Trump's orders' —'Murphy proposes $1 million to incentivize youth voting in school board elections' —'Tax and spending increases mark Murphy's final NJ budget plan' —'Murphy's budget gets mixed response as millions meant for 'clean' climate are sent to NJ Transit' IF SOMETHING SEEMS OFF, LOOK TO MAYO — 'Scutari taps ex-judge as new SCI commissioner,' by New Jersey Globe's David Wildstein: 'The chairman of the Joint Legislative Committee on Ethical Standards has been named to the State Commission of Investigation. A. Todd Mayo, a former East Brunswick Municipal Court judge, will take the seat vacated last month by Tiffany Williams Brewer, who gave up her commissioner slot to become executive director – a gig that lasted just four days. Senate President Nicholas Scutari named Mayo, an Air Force veteran who spent a decade as a municipal court judge and less than four years as a Workers Compensation Court judge. The governor gets two picks for the SCI, and the Senate President and Assembly Speaker each get one. Mayo attended the Thomas M. Cooley Law School in Michigan at the same time as Scutari, who graduated one year earlier. … Brewer resigned as executive director in January, four days after her appointment was announced and one day after the Asbury Park Press reported that she was living in Maryland and working as a law professor at Howard University. She blamed SCI employees for torpedoing her.' EDUCATION —'Thousands of New Jersey students aren't fluent in English. See what experts fear it means,' by The Asbury Park Press' Amanda Oglesby: 'Thousands of New Jersey students in classrooms have a limited grasp of English. They come speaking Spanish, Mandarin, Tagalog and Ukrainian. Other students speak Portuguese, Gujarathi and Hindi. As of 2023, about one in every 11 New Jersey students was learning to speak English in school, or about 131,000 children and teenagers across the state, according to New Jersey Department of Education records. In Ocean and Monmouth counties, about one in every 16 students is learning English, or about 9,500 students, according to the state department, but the numbers are continuing to grow. Experts worry these children face serious obstacles to academic success, from trouble registering for school, to crowded classrooms and limited resources after years of deep budget cuts.' ATLANTICKED COUNTY — Atlantic County Democrats hold their convention this weekend for governor. And just this month, the county committee made a change to their rules, barring any candidates from seeking their endorsement who have pledged to bracket with a candidate who's not competing at the convention. If the rule change appears aimed at the Assembly candidates running with Steve Fulop's gubernatorial campaign in the 2nd District, that's because it is. 'The short answer, in terms of Fulop, yes, I'll be honest with you,' county Democratic Chair Michael Suleiman told me. 'But the legitimate reason is in the future we want a situation where the folks that are running are sincere about accepting our slogan.' In the end, it's not really much of a change. Suleiman noted that the committee has for decades required convention winners to run under the county party's slogan, so this rule change was just clarifying that. And Fulop's Assembly running mates, Lisa Bonanno and Bruce Weekes, didn't plan to compete anyway. (Bonanno told me she decided not to compete at the convention once the county's Democratic organization got behind Joanne Famularo and Maureen Rowan, though she had bought a convention ticket and paid her municipal Democratic club dues). Fulop told me, 'The fact that they're changing rules … shows we're doing something that makes them feel uncomfortable, and we're probably on the right track.' The Democrats competing for Atlantic County's endorsement are Steve Sweeney, Mikie Sherrill, Ras Baraka and Sean Spiller. —'A potential legal battle looms over New Jersey's new proposed weed laws' —'Spadea wins Ocean County with hefty 61%' —'Ciattarelli wins Passaic GOP endorsement' —'The NJ Senate ballot reform bill is a massive step backward. It must not pass | Opinion' —'Sweeping investigation launched into N.J. school empire accused of nepotism, overpaying leaders' —'Dozens of New Jersey marijuana businesses push to legalize home cultivation, despite resistance from governor and legislative leaders' —'Trump threats spur bipartisan support for NJ immigrant privacy bill' TRUMP ERA PARDON ME — 'Would Trump cast a lifeline to Bob Menendez as he did for Eric Adams? Doubtful,' by The Record's Charles Stile: 'The Adams case also underscores how unlikely it is that Trump will come to Menendez's rescue with a pardon. While Adams had been cozying up to Trump at sunny Mar-a-Lago, Menendez auditioned for a pardon … minutes after being sentenced to prison for 11 years for selling out his Senate office for cash and gold bars as a behind-the-scenes agent for Egypt and for trying to stop two criminal investigations. Menendez is appealing the conviction. Adams has something of value to offer Trump: his help with the president's mass deportation plans, even with the Sword of Damocles hanging over his head. What does Menendez offer Trump? What does he bring to the table? Maybe some criticism from Trump's friends at Fox News, his chief hiring pool. … But here is one possibility: If Trump is serious about turning Gaza into the 'Riviera of the Middle East,' he'll need help from Egyptian officials in an agreement to accept potentially hundreds of thousands of Palestinian refugees from Gaza. Perhaps Trump could pardon Menendez and make him a special envoy to Egypt, where he can reunite with those officials he once wined and dined and helped with the release of hundreds of millions in military aid. He knows some of them on a first-name basis.' IT'S GONNA BE A SUPERFUN FOUR YEARS — 'Republicans in Congress attack Superfund cleanup tax,' by NJ Spotlight News' Benjamin J. Hulac: 'Republicans in Congress, with control of the White House and backing from chemical companies, are trying to eliminate a federal tax on chemicals that funds the cleanup of toxic waste sites nationwide. As part of a 2021 federal infrastructure law, lawmakers revived a tax that expired in the 1990s. The tax pays to clean toxic sites where the company that polluted the location cannot be found or no longer exists. Often, the responsible company or companies went bankrupt years prior. Now, the tax that has provided funding to clean up these places — what are known as 'orphaned' sites — is at risk … The elimination of the tax would slow cleanup efforts at orphaned sites in New Jersey and other states a few years after money had begun to flow to pay to remedy dangerous sites, often former chemical plants, military depots, lumber mills or steel-making companies.' —'Van Drew emerges as swing vote on House GOP budget plan' —'NJ's Edan Alexander is last surviving U.S. hostage in Gaza. Why his father remains hopeful' —'Trump's reckless cuts will kill': Rutgers leads labor to D.C. DOGE attacks' LOCAL CHEATINGS FROM ASBURY PARK — 'Ex-Asbury Park schools chief lawsuit says he was suspended for exposing unearned diplomas,' by The Asbury Park Press' Charles Daye: 'Former Asbury Park Schools Superintendent RaShawn M. Adams filed a lawsuit against the school district and the Board of Education, alleging that he was placed on administrative leave as retaliation after exposing 'illicit/illegal' activity to the board. Adams had a contentious relationship with the teachers' union since he took over as superintendent in 2021. It all came to a head in February 2024 when the Board of Education voted to place Adams on paid administrative leave. The lawsuit was filed in state Superior Court in Monmouth County on Feb. 13 and states that 'in his efforts to reverse decades of chronic, institutional failure and mismanagement' Adams sought to re-evaluate the entire operation of the district. Adams says he focused his efforts on contracts with all outside vendors, particularly tuition payments to charter schools and out-of-district placements. Adams determined that some district employees were fraudulently or illicitly managing public finances as a result of incompetence, or worse, for personal gain, according to the lawsuit.' UH OH, CANADA — 'Jersey Shore businesses brace for big loss of Canadian tourists amid rising tensions,' by NJ Advance Media's Eric Conklin: 'With just 13 Fridays until the start of Memorial Day weekend, the phone at Ponderosa Campground just outside of Avalon has been ringing. But some calls haven't been the kind you want ahead of the crucial summer season, owner Marcia Kelleher told NJ Advance Media. More than a half-dozen Canadian families have cancelled reservations in what Kelleher fears could be a growing trend. 'We rent out about 40 cabins, and we get a lot of Canadians,' said Kelleher. … Canadians make up a large portion of bookings, particularly in July when construction projects are paused for two weeks, and they frequently stay for two weeks or more, she said.' —'[Fairview's] data breach left thousands of people exposed, lawsuit claims' —'After much back and forth, Garfield will hold school elections in April' —'[Newark] Central Ward special election will not be held in tandem with April BOE election' —'Montclair council appoints new township manager' —'Cape May County budget expected to reduce tax levy' —'What commuters think of the upgraded, brighter Hoboken PATH station' —'Montclair settles claim ex-teacher discriminated against Jewish students' —'[Clark] middle school teacher accused of distributing child porn' EVERYTHING ELSE R.I.P. — 'Beloved N.J. county fair volunteer known for his 'rooster crow' dies at 103' —''103 & Fabulous.' N.J. centenarian celebrates another milestone birthday' —'Caught on camera: Hazlet police officer rescues dog from icy lake'
Yahoo
26-02-2025
- Business
- Yahoo
Here's what Gov. Murphy wants to spend on in his final New Jersey budget
TRENTON, N.J. (PIX11) — For one last time, Governor Phil Murphy delivers his budget address. He's proposing just over $58 billion for fiscal year 2026 to help schools, transit, and the next generation of New Jerseyans. 'Though we have come far in this journey, let me be absolutely clear: we have not reached the finish line yet,' Murphy said in Tuesday's address in Trenton. More: Latest News from Around the Tri-State In his final budget, Murphy is proposing $28.5 billion to support direct and indirect property tax relief programs, including but not limited to ANCHOR, Fenior freeze, and StayNJ. 'Back in 2018, the average, eligible homeowner in New Jersey received $246 in property tax relief,' said Murphy. 'This year, that average tax relief payment will be over $1,500, a more than 500% increase in just seven years.' His budget will introduce a new sales tax exemption for cribs and other critical baby supplies to help families. He's also proposing $815 million in funding from the Corporate Transit Fee for New Jersey Transit. The administration says the money will help to fully modernize the agency by replacing every outdated rail car and bus in the fleet. He's also appropriating more than $22 billion to fund schools – $444 million more than the last budget – and will look to address school districts that were victim to cuts last year. More New Jersey News 'We are also going to reduce volatility in the school funding process by ensuring that no school district sees a steep reduction in state aid from one year to the next,' said Murphy. In their response to the budget, Trenton Republicans hoped for tighter spending. 'This upcoming budget is anything but affordable,' said Asw. Nancy Munoz (R-NJ 17th District). 'We need to strip it down to the studs and rebuild with responsible spending and that's what we intend to do during the budget season. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
26-02-2025
- Business
- Yahoo
Republicans warn governor's budget plan will leave New Jersey in ‘an enormous hole'
Sen. Anthony Bucco (R-Morris) blasts Gov. Phil Murphy's $58.1 billion budget proposal at the Statehouse in Trenton. (Dana DiFilippo | New Jersey Monitor) Gov. Phil Murphy for months has called for cuts in state spending but offered a bloated budget proposal packed with unnecessary new spending, Republican legislative leaders said Tuesday after the governor's annual budget address. The record-high $58.1 billion budget proposal perpetuates the state's structural deficit and leaves a surplus that would take the state just 39 days to burn through, said Sen. Anthony Bucco (R-Morris). New programs like Stay NJ, a tax break for seniors that will cost more than $1 billion a year when it's fully phased in, just add to that structural deficit, Bucco said. 'This next governor is going to be left with an enormous hole to fill. And you know what they say: When you're in a hole, stop digging. Well, this governor keeps going deeper and deeper and deeper, and it's going to be that much harder for the next governor to be able to move that program forward,' Bucco said. Sen. Declan O'Scanlon (R-Monmouth) and Assemblyman John DiMaio (R-Warren) blasted Murphy's plan to expand funding for free preschool, saying some districts still don't have full-day kindergarten while others struggle with insufficient state support that has forced them to cut staff, extracurriculars and more. They also objected to new or expanded taxes and fees Murphy has proposed, including on firearms, drones, and alcohol. 'Any new tax is a drag on the economy, money out of hard-working people's pockets that they could be using for other things,' DiMaio said. The new spending also contradicts the warning Murphy made during his budget address about the 'deep uncertainty and anxiety' coming out of Washington, D.C., with threats of federal funding cuts by the Trump administration, said Assemblywoman Nancy Munoz (R-Union). 'They're deflecting blame on the federal government (for cuts) that haven't even happened yet, and meanwhile, they're spending money we don't have and relying on revenues that won't materialize,' Munoz said. Republican leaders last week threatened to sue the Murphy administration if it didn't stand firm against last-minute budget additions. Such pork spending, which topped $600 million last year, is 'based on naked political favoritism,' GOP leaders said then. Tuesday, DiMaio predicted pork will still swell next year's budget despite their lawsuit threat, widespread criticism over the structural deficit, and the uncertainty in Washington. The Legislature must finalize the next fiscal year's budget by June 30. 'We've had 20-plus years of the Legislature controlled by the Democrats, the last eight years of one-party rule. And when you have one-party rule, this is what the public loses — it loses transparency, and it loses the negotiations,' DiMaio said. 'Because unless you have a Republican governor or Republican Legislature, there is no need for the Democrats to negotiate with the Republicans.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
