New Jersey
A closer look at what's in New Jersey's proposed $56.6 billion budget, from taxes to spending
TRENTON, N.J. — New Jersey lawmakers are poised to send a $56.6 billion fiscal year 2025 budget to Democratic Gov. Phil Murphy this week, hiking taxes on high-earning businesses and funding for many state services and programs.
The annual spending plan is expected to get enough votes in the Democrat-led Legislature on Friday to reach Murphy’s desk. The state constitution requires a balanced budget to be enacted by July 1.
Here’s a closer look at what’s in the budget, which would spend 4.2% more than the plan Murphy signed last year.
ARE THERE ANY NEW TAXES?
Yes. The budget calls for increasing the state’s corporation business tax on companies that make more than $10 million a year. The current 9% rate would climb to 11.5%. Business groups say that would give New Jersey the nation’s highest tax rate and punish the state’s best corporate citizens.
WHY ARE TAXES GOING UP?
The higher rate was first proposed by Murphy as part of his budget proposal early this year to help New Jersey Transit. He’s billing the levy as a corporate transit fee to help the beleaguered agency, which has regularly had to use capital funds to help finance projects.
Critics note that the revenue won’t go to transit until next year. The current budget keeps it in the general fund, so when the money goes to transit next year, whatever is being paid for now out of the general would need to be replenished or cut, those critics say.
ARE THERE OTHER TAX CHANGES?
Yes. The budget calls for ending a sales tax holiday on school supplies that had gone into effect around the start of the academic year. That cut was first introduced in 2022 when the Democrats who control state government aimed to show voters they were making the state more affordable. Lawmakers didn’t explain this cut when they unveiled the budget Wednesday, but the additional revenue could help balance the budget.
WHAT ABOUT PROPERTY TAXES?
New Jersey has among the nation’s highest property taxes, levied by local governments to finance services and schools. The state dedicates some income tax revenue to fund local governments, which helps keep property tax rates from growing even higher. This budget calls for increasing state K-12 funding to fully implement an aid formula ratified by the state Supreme Court, raising such aid to more than $11 billion, up nearly $1 billion from the current fiscal year. The budget also has about $2.5 billion for direct property tax relief, continuing programs introduced in 2022 and 2023 to help residents, renters and seniors. The average property tax amount in 2022, which is the most recently available information, is about $9,500, according to the state.
WHAT ELSE IS IN THE BUDGET?
Quite a bit, given it funds all aspects of state government, from the executive departments to public colleges and universities, to the Legislature itself, which this year passed a 67% pay raise for lawmakers, their first since 2002, which goes into effect in 2026. Overall, spending is up just over 4% compared with the current fiscal year budget.
It includes a number of expenditures — sometimes referred to as Christmas tree line items because they’re viewed as gifts for specific constituencies. They include funding for ending homelessness, helping people re-enter society from prison, fire departments, arts programs and one city’s effort to teach life skills through tennis.
Republican lawmakers said they barely had time to review the budget and lamented that they weren’t sure what all was in it. Even Democratic Senate Budget Committee Chairman Paul Sarlo said the document is too vast to read line by line, but he supports it overall.
“I could not take a test and be quizzed on every line item because it would take hours and hours and days and months,” Sarlo said. “I try to look at it in totality and that’s where I think we’re at.”
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NewJerseyDevils.com is the official web site of the New Jersey Devils, a member team of the National Hockey League (“NHL”). NHL, the NHL Shield, the word mark and image of the Stanley Cup and NHL Conference logos are registered trademarks of the National Hockey League. All NHL logos and marks and NHL team logos and marks as well as all other proprietary materials depicted herein are the property of the NHL and the respective NHL teams and may not be reproduced without the prior written consent of NHL Enterprises, L.P. Copyright © 1999-2024 New Jersey Devils and the National Hockey League. All Rights Reserved.
Today, more than 100 elected officials at the county and local levels from across New Jersey’s 11th Congressional District announced their endorsement of Mikie Sherrill for Governor of New Jersey. These leaders, from across Essex, Morris, and Passaic Counties, collectively released the following statement in support of Mikie Sherrill:
“For Mikie Sherrill, there’s no challenge too big and no problem too small. That’s why we’re thrilled to support her run for Governor of New Jersey.
“We represent communities across New Jersey’s 11th District, and we’ve had the privilege of working alongside Mikie Sherrill since as early as 2017. We’ve seen firsthand how she’ll never back down from a challenge, and how she’s willing to work with anyone, Democrat or Republican, to get things done for New Jerseyans. In times of crisis, she’s a leader – she makes tough decisions and she delivers.
“After Trump was elected in 2016, New Jersey needed real leadership, and Mikie Sherrill stepped up. In the three election cycles since, Mikie Sherrill has paved the way for strong Democratic leadership focused on results in every corner of the district. She’s helped elect Democratic mayors and council members – even in areas once taken for granted by the Republican Party. She listens to neighbors and community members, takes their concerns to heart, and will never back down when it comes to serving our state.
“Take, for example, the Gateway Tunnel. Mikie ran her first campaign on a vow to build the Gateway Tunnel, and, after years of broken promises, we were skeptical. Yet, she did just that – leading the fight to fund the Gateway Tunnel and secure a federal cost-sharing agreement that will allow us to get the project done without raising state or local taxes on families. And Mikie didn’t stop there – she continues to be a fearless advocate when it comes to holding New Jersey Transit and Amtrak accountable for the ‘summers of hell’ we’ve experienced year after year. She knows what it’s like for parents not to know if they will be able to make it back in time to pick up their children from daycare, or to be able to coach their kids’ soccer team.
“That’s just one of the big issues Mikie has tackled during her time in Congress, but we also know that she cares deeply about making life easier for our residents and cutting through the bureaucratic red tape that frustrates all of us. Mikie and her team are always a phone call or a text away. When our residents come to us needing help, we often tell them to reach out to Mikie and her staff. From ensuring local veterans get all of their health care benefits, to helping our seniors navigate Medicare or Social Security, to making sure the IRS gives you back every dollar you’re owed, Mikie will stop at nothing to ensure that every New Jerseyan who needs help gets it.
“Time and again, we’ve seen Mikie – a lifelong public servant – step up to make life easier for New Jersey families. As Governor, we know she’ll do exactly that, and we’re excited to support her every step of the way.”
Sincerely,
Essex County Executive Joseph N. DiVincenzo, Jr.
Essex County Clerk Christopher J. Durkin
Essex County Sheriff-elect Amir Jones
Essex County Register Juan Rivera, Jr.
Essex County Commissioner President Carlos M. Pomares
Essex County Commissioner Vice President Tyshammie L. Cooper
Essex County Commissioner At-Large Patricia Sebold
Essex County Commissioner At-Large Romaine Graham
Essex County Commissioner At-Large Brendan W. Gill
Essex County Commissioner At-Large Wayne L. Richardson
Essex County Commissioner District 1 Robert Mercado
Essex County Commissioner District 4 Leonard M. Luciano
Passaic County Clerk Danielle Ireland-Imhof
Passaic County Sheriff-elect Thomas Adamo
Passaic County Commissioner Orlando Cruz
Passaic County Commissioner Bruce James
Passaic County Commissioner Pasquale “Pat” Lepore
Passaic County Commissioner-elect Rodney De Vore
Bloomfield Mayor Jenny Mundell
Bloomfield Councilwoman At-Large Monica Tabares
Bloomfield Councilwoman Third Ward Sarah Cruz
Glen Ridge Mayor Deborah Mans
Glen Ridge Councilor Ann Marie Morrow
Glen Ridge Councilor Rich Law
Glen Ridge Councilor Peter A. Hughes
Glen Ridge Councilor LoriJeane Moody
Glen Ridge Councilor David Lefkovitz
Glen Ridge Councilor Rebecca Meyer
Livingston Council Member Shawn Klein
Livingston Council Member Michael Vieira
Livingston Council Member Ketan Bhuptani
Maplewood Mayor Nancy Adams
Maplewood Deputy Mayor Jamaine Cripe
Maplewood Committeeperson Dean Dafis
Maplewood Committeeperson Victor De Luca
Maplewood Committeewoman-elect Malia Herman
Millburn Mayor Annette Romano
Millburn Committeeman Michael Cohen
Montclair Deputy Mayor Susan Shin Andersen
Montclair Third Ward Councilor Rahum Williams
Nutley Commissioner Thomas J. Evans
Roseland Mayor James R. Spango
Roseland Council President Christopher Bardi
Roseland Councilman John Biront
Roseland Councilwoman Eileen Fishman
Roseland Councilman Neal Goldstein
Roseland Councilman Marcelino “Moose” Trillo
Boonton Ward 2 Council Member Jacob Hettrich
Boonton Ward 2 Council Member Marie Devenezia
Chatham Borough Mayor Carolyn Dempsey
Chatham Borough Council President Jocelyn Mathiasen
Chatham Borough Council Member Justin Strickland
Chatham Borough Council Member Karen Koronkiewicz
Chatham Borough Council Member Brian Hargrove
Chatham Borough Council Member Irene Treloar
Chatham Borough Council Member Katherine Hay
Chatham Township Mayor Stacey Ewald
Chatham Township Deputy Mayor Michael Choi
Chatham Township Committeeperson Jen Rowland
Chatham Township Committeeperson Marty McHugh
Dover Mayor Mayor James P. Dodd
Dover First Ward Council Member Claudia P. Toro
Dover First Ward Council Member Sandra Wittner
Dover Second Ward Council Member Geovani Estacio
Dover Third Ward Council Member Michael Scarneo
Dover Third Ward Council Member Karol Ruiz
Dover Fourth Ward Council Member Arturo Santana
Dover Fourth Ward Council Member Marcos Tapia
Lincoln Park Ward III Councilman Patrick Antonetti
Madison Mayor Robert H. Conley
Madison Council President Eric Range
Madison Council Member Rachel Ehrlich
Madison Council Member Robert E. Landrigan
Madison Council Member Tom Haralampoudis
Madison Council Member Melissa Honohan
Madison Council Member John Forte
Mendham Township Deputy Mayor Lauren Spirig
Morris Plains Mayor Jason Karr
Morris Plains Council President Nancy Verga
Morris Plains Councilmember Joan Goddard
Morris Township Mayor Donna J. Guariglia
Morris Township Deputy Mayor Jeffery R. Grayzel
Morris Township Committeeman Mark J. Gyorfy
Morris Township Committeeman William “Bud” Ravitz
Morris Township Committeeman Siva S. Jonnada
Mountain Lakes Mayor Khizar Sheikh
Mountain Lakes Deputy Mayor Lauren Barnett
Mountain Lakes Councilmember Chris Cannon
Mountain Lakes Councilmember Cynthia Korman
Mountain Lakes Councilmember Tom Menard
Mountain Lakes Councilmember Melissa Muilenburg
Parsippany Councilwoman Judy Hernandez
Rockaway Township Ward 4 Councilman Jonathan Sackett
Rockaway Township Ward 5 Councilman Emanuel “Manny” Friedlander
Little Falls Mayor James Damiano
Little Falls Council President Anthony Sgobba
Little Falls Councilman Christopher Vancheri
Little Falls Councilwoman Christine Hablitz
Wayne Ward 5 Councilwoman Francine Ritter
Woodland Park Mayor Tracy Kallert
Woodland Park Council President Vincent DeCesare
Woodland Park Councilwoman Tina Gatti
Woodland Park Councilwoman Christine Tiseo
Woodland Park Councilman Michael Sica
Woodland Park Councilman Adam Chaabane
Woodland Park Councilman Luis Torres
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