Heading into one of the biggest political showdowns of the year, Gov. Phil Murphy unveiled his $38.6 billion budget on Tuesday for the 2020 fiscal year, which begins July 1.
Last year, Murphy and lawmakers narrowly avoided a shutdown when they struck a deal at the 11th hour for a $37.4 billion spending plan.
But Murphy and the state’s top Democrats, including Senate President Stephen Sweeney, D-3rd District, walked away bruised – with Sweeney seen as having come out on top.
The governor failed to achieve his proposed “millionaire’s tax” on earners above $1 million – and instead he got a “mega-millionaire’s tax” of 10.75 percent on earners above $5 million.
He failed to increase the sales tax from 6.625 percent back up to 7 percent – years after it was lowered under then-Gov. Chris Christie as part of a deal to allocate funds towards the Transportation Trust Fund.
But, he pushed through considerable investments to the state’s pension fund, expanding his proposed “community college for all” and expanded access to Pre-K, $20 million in tax revenue from an expanded medical marijuana program, and a variety of smaller tax increases.
“New Jersey deserves a budget built upon the values that can deliver a more secure and growing middle class – sustainable savings, responsible fiscal management, smart and targeted investment, and fairness,” Murphy said in a prepared statement Monday evening.
In the 2020 budget, the Murphy administration estimates the state will make $16.7 billion from the income tax, $10.5 billion from the sales tax and $3.2 billion from the corporate business tax – ultimately ending with a $1.16 billion surplus – meaning money the state has left over, that it did not spend.
The budget data incorporates endless pages and thousands upon thousands of digits – we at NJBIZ have broken down the numbers so you can learn just what it means for you:
- Education: 2020 budget supports education at all levels
- Health Care: Budget would penalize businesses that don’t offer health plans
- Incentives: Funding for Murphy’s proposed tax break programs: $400M
- Marijuana: Still lacking deal, Murphy budget eyes $60M in legal marijuana tax money
- Millionaires’ Tax: Murphy takes another go at millionaires’ tax in 2020 budget
- Pension: Murphy seeks record-high pension contribution
- Surplus: 2020 budget calls for billions in savings and end of year surplus
- Transportation: No NJ Transit fare hikes if Murphy admin gets its way with budget