Background: Murphy submitted his original budget to the Democratic legislature in late February. Less than two weeks later, the coronavirus took hold in New Jersey and wreaked havoc on state finances.
As a result, the traditional June 30 budget deadline for New Jersey was postponed to September 30 as officials worked to get a clearer sense of the state’s financial picture. In June, Murphy and lawmakers agreed on a three-month contingency plan worth $ 7.7 billion that covered July 1 through September 30. The revised nine-month budget passed by lawmakers last week covers the period October 1 through June 30.
What is in the budget: Under the plan and related bills, the tax rate on income greater than $ 1 million will increase from 8.97 percent to 10.75 percent. Millionaire’s Tax fulfills one of Murphy’s key election promises and is the same as the tax rate on income over $ 5 million. Murphy unsuccessfully applied for the tax in each of his two previous budgets.
As part of the budget agreement, Congregation spokesman Craig Coughlin brokered a contract that would provide discounts of up to hundreds of thousands of families in New Jersey whose single parent incomes are less than $ 75,000 or $ 150,000 for two-parent households Granted $ 500.
The budget also includes a further increase in the annual assessment for HMO premiums from 3 to 5 percent. New Jersey raised that estimate from 2 percent to 3 percent last year.
In addition, a 2.5 percent surcharge for companies will be reintroduced, which will expire in a few years. In addition, the budget increases the state’s surplus to more than $ 2.5 billion, calls for a $ 4.5 billion borrowing to close a billion-dollar loss of income, and keeps school funding flat.
However, the budget does not include Some of the smaller revenue collectors Murphy called for in his revised proposal, including taxes on cigarettes, an increase in gun fees, and a tax on boat purchases and limo rides. Also not included is the governor’s baby bond plan, which is designed to give tens of thousands of newborns $ 1,000 bonds.
What you say: Senate President Steve Sweeney, who has dealt with Murphy frequently, thanked the governor for “the cooperation you have shown us.”
“I think sometimes really bad things like the pandemic bring out the best in us,” Sweeney said during the ceremony on Tuesday. “You put your differences aside and you realize that we must all be there together.”
Republicans have opposed the “pork” filling spending plan at a time when the state should exercise fiscal restraint, citing including funds for things like golf programs and city hall renovations.