(The Center Square) – New Jersey Gov. Phil Murphy is poised to give his annual budget address on Tuesday, and he finds himself in the enviable position of having a “budget surplus.”
Amid the COVID-19 pandemic, New Jersey has seen the federal money roll in, including more than $6 billion in America Rescue Plan (ARP) funds. Additionally, higher than projected tax revenues have bolstered the state’s budget outlook.
“It’s going to be interesting because we’re at a unique moment,” New Jersey Business & Industry Association Vice President of Government Affairs Christopher Emigholz told The Center Square. “There’s an opportunity in front of us where we are in a more cash-rich position than the state usually finds itself in.
“We’ve had many a year [discussing whether the state can] make the school aid increase or the next pension payment or any other items that are fixed costs or the kind of priorities that we focus on. Now, we have billions more than we planned on in the current budget, and next year’s budget should be easier.”
Emigholz said he expected to see a full payment to the state’s pension fund, increased school aid, a “healthier” increase for higher education spending and “healthier” municipal aid. Emigholz also said he wouldn’t be surprised if Murphy announced the largest payment ever into the state’s Rainy Day Fund.
In a statement, Murphy said his proposed budget will make “New Jersey stronger, fairer, and more affordable by not just muddling through today, but building a State of Opportunity for tomorrow.”
“As we move from pandemic to endemic, New Jersey is getting back to normal thanks to the personal responsibility taken by so many of our fellow New Jerseyans,” Murphy, a Democrat, said. “We now have the chance to make New Jersey a place where everyone willing to work hard can achieve their American Dream.”
Conversely, Regina Egea, president of the Garden State Initiative, said New Jersey taxpayers will likely be disappointed by Murphy’s proposed budget.
“Across the country, red and blue states alike are experiencing surging tax revenues and responding by enacting significant tax reductions,” Egea told The Center Square. “By putting more money in their citizen’s pockets they are growing their state economies and reducing unemployment. Unfortunately, New Jersey taxpayers are bound to be disappointed by the proposed state budget which will follow the tried-and-true playbook of our state unilaterally spending more, not less next year.
“Picking short term winners and losers through shell games like ‘relief checks’ and increased municipal aid, is nothing more than replacing one tax with another,” Egea added. “Instead, New Jerseyans are smart enough to understand that we’d be better off following the winning plans of other states. Lowering our highest in the nation tax burden is the only way to stimulate our state economy and create more opportunity for everyone in New Jersey.”
Similarly, Assemblyman Hal Wirths, the Assembly Republican budget officer from Sussex, said Murphy’s speech will be predictable.
“Murphy will possibly announce three or four billion dollars in unexpected revenue because he and the Democrats have over-taxed us for the last five years even while inflation socks low-income families and the middle-class,” Wirths said in a statement. “But expect him to spin reality to be more rosy. And tax cuts won’t reduce revenue this year.”
This article was published by The Center Square and is republished here with permission. Click here to view the original.
