Gov. Phil Murphy is set to decide by 11:59 p.m. on Tuesday whether to approve a $7.7 billion spending plan that lawmakers sent him to cover the costs of government for the next three months, as the state grapples with the COVID-19 pandemic and ensuing economic havoc.

The proposal – which was introduced June 25, just hours before it received a committee hearing, and drawing the ire of Republican lawmakers and open government advocates – passed both the Senate and Assembly on Monday by a 21-17 and 46-27 vote, respectively.

These were the first in-person voting sessions in three months, with the Democratic majority giving approval despite opposition from the entire Republican caucus.

Monday’s proposed spending plan calls for cutting or delaying $5.3 billion over the next three months, like what the governor proposed in May. Lawmakers are hoping to restore some of the funding, as they expect the state will see more positive numbers after the July 15 income and corporate business tax filing deadlines.

“There may be we can have a little bit of good luck, then could be a little bit more to work with,” Assembly Budget Chair John Burzichelli, D-3rd District, told NJBIZ.

Murphy has not commented on any specifics of the proposal, beyond arguing that his administration needs the authority to borrow up to $14 billion from private markets and a Federal Reserve program, and that the state needs billions of dollars in federal aid.

Responses to the pandemic by Murphy and other governors nationwide have entailed placing their respective states on near-total lockdown and closing businesses. The strategy has worked, but in the process ground commerce to a halt—driving up unemployment and causing major reductions in revenue from taxes on corporations, income, sales, gas, casino and lottery tickets along with fares and tolls.

Because of that, the state is facing a $10.1 billion shortfall through June 30, 2021, including $2.75 billion through Sept. 30, according to projections from the state treasury.

Typically, the 2021 budget would begin on July 1, but amid the pandemic Murphy approved a rare measure pushing the start-date to Oct. 1.

“There’s nothing to be excited about, quite frankly,” Senate Budget Chair Paul Sarlo, D-36th District, said during the Senate voting session. “This is a very difficult time that we are now in and I believe for the next 12 to 18 months.”

Bill sponsors argued the proposal includes enough spending cuts so that they were able to avoid any tax increases.

Hundreds of millions of dollars will be cut in senior property tax relief, opioid addiction treatment and tuition aid.

Murphy, at least for now, has to postpone his long-desired plan for a “millionaire’s tax,” a heightened cigarette tax rate, and a fee on employers that do not offer health care plans to their employees.

Senate President Stephen Sweeney, D-3rd District, indicated he would not consider any tax increases at least until after July 15—even though both Murphy and Assembly Speaker Craig Coughlin, D-19th District, have not yet taken them off the table.

The $7.7 billion spending plan was crafted under the assumption that the Murphy administration would not end up with the authority to borrow up to $14 billion, a potential blow to the governor.

Even though it passed the Assembly, Sweeney has been skeptical of that proposal, while the entire GOP caucus in that chamber said they will vote against the measure. Still, the Senate President on Monday indicated he was not flat out opposed to the borrowing scheme.

“When we go and advance this kind of borrowing, we want to make sure this is handled properly,” he told reporters.

Although Sweeney would not say what exactly he wanted in a borrowing proposal, he maintained that talks were still underway with the governor’s office and that he wants to nix the ability for the state to borrow on behalf of towns and cities.

More than $4 billion in expenses were delayed until Oct. 1, and over $1.3 billion has been “de-appropriated” from this year’s budget—meaning the state will pull the funding for those programs.

But, a joint legislative panel would be able to contest the money that Murphy ultimately “de-appropriates,” and lets them have a say in that specific part of the budget.

The governor’s constitutional authority still gives him the power to line-item veto certain items within the budget in order to balance the state’s finances.

Lawmakers restored $4 million to modernize the labor department’s sprawling and beleaguered unemployment system. They also put $52 million back toward the state’s public universities and $14 million toward county colleges, both of which Murphy took out of his proposal.

While Murphy initially proposed a $41.2 billion budget. Data from the state treasury means the state would have to drastically cut the proposal enough to bring it down to $33.9 billion.

Murphy has until Aug. 25 to release the spending plan.

“When we get the budget address on the 25th, we’ll probably look at this as being easy, compared to what’s coming,” Burzchelli said.

Murphy indicated that the state could shell out upward of another $10 billion to finance its efforts to contain future outbreaks of COVID-19, and has spent roughly $200 million during its first few months of the response.

And, the arrival of a widely-expected second wave could mean another $1 billion in state tax revenue that would be shattered.