Murphy mum on veto strategy

Gov. Phil Murphy is playing his cards close to the chest when it comes to his promised veto of the legislature’s budget.

Murphy, who has demurred on whether he would employ a line-item veto or veto the budget outright once it reached his desk when asked at a press conference yesterday what his strategy there would be, said at a press conference Tuesday that he hasn’t given consideration to the timing of his impending veto.

“Have not given that any thought,” Murphy said when asked about the timing of his veto. “We keep all options available.”

He likely doesn’t have much time left to think about it. Legislative leadership is aiming to get their version of the budget before the full Assembly and Senate on Thursday.

Vetoing that budget, and whatever accompanying bills the legislature advances through extended Budget Committee hearings in both chambers today, immediately could provide legislators and the governor more time to negotiate a potential compromise that Murphy indicated he was willing to entertain.

But any part of that compromise would likely have to include some give from legislators on Murphy’s proposed hikes to either the sales or millionaire’s taxes.

“I wouldn’t speculate on how close or not it would be,” Murphy said when asked about how close legislators accepting his sales tax hike would bring the parties to a compromise. “But, finding some common ground with something that looks so obvious to me, and to us – as you can see, I’m not alone up here. It’s not like we don’t have the facts on our side – that would be a major step in the right direction.”

Senate President Steve Sweeney and Assembly Speaker Craig Coughlin have so far resisted tax hikes that could impact New Jersey residents. Instead, they’ve opted to push a hike to the state’s Corporation Business Tax that would phase out after two years.

Their approach hinges on combatting what they see as a spending problem in the state and avoids permanent tax hikes like those favored by Murphy – a point on which Murphy frequently hammers the legislature.

The subtext of the measures favored by Murphy and Sweeney is that they’re less likely to impact vulnerable legislators up for reelection next year.

Murphy isn’t looking to leverage that pressure – or the memory of former Gov. Jim Florio – at least not yet.

“It’s never occurred to me,” Murphy said when asked if he would attempt to pressure Democratic lawmakers with candidates from the left next year. “And, let me maybe make a point that I should have made up front: It’s the 19th. I remain optimistic we’re going to figure this out.