Statements on Murphy’s Budget

SENATE PRESIDENT NICHOLAS SCUTARI, MAJORITY LEADER TERESA RUIZ, AND BUDGET AND APPROPRIATIONS COMMITTEE CHAIRMAN PAUL SARLO

“We welcome the Governor’s proposed budget with a plan that recognizes the economic uncertainty and fiscal challenges we face. The proposal outlines ways to address our shared priorities of meeting the needs of working people, making New Jersey more affordable, expanding economic opportunities, and supporting the policies that improve the quality of life for all our residents.

“Our responsible management of state finances in recent years puts us in a better position to contend with economic challenges and continue to invest in the priorities that move New Jersey forward.

“Fully funding our schools, making another full pension payment, and providing a record amount of property tax relief will serve as a good foundation for the budget.

“The Governor’s proposal is now the responsibility of the Legislature. The Senate Budget Committee will conduct a thorough review with input from the public, businesses, advocacy groups and others who are impacted by the spending plan.

“We will work to produce a state budget that addresses our needs in a responsible and effective way, and helps to make New Jersey more affordable.”

ASSEMBLY SPEAKER CRAIG COUGHLIN

“As we begin our review of the Governor’s proposed budget for Fiscal Year 2025, I remain committed to working with Governor Murphy to provide meaningful property tax relief. I am pleased to see a historic commitment to achieve that goal and look forward to ensuring StayNJ becomes reality to help seniors remain in their homes. As we work together over the coming months, I remain convinced that any discussion about increasing corporate taxes must be had with our state’s long-term fiscal health and a further commitment to reducing property taxes in mind.

“The proposed budget also makes smart investments that will benefit New Jersey families—for the first time ever, the budget proposes to fully fund our public schools, there is a fourth straight full payment toward our public pension obligations, and meaningful new resources to combat hunger.

“We will have to make some difficult decisions on spending and how to pay for programs and services in the months ahead. We will now begin the process of reviewing the proposed budget by seeking input from the public and conducting hearings with each Department. I am confident we will reach an agreement on a budget that reflects our values and creates a brighter future for the families of our State.”

SENATE MAJORITY WHIP TROY SINGLETON

“The budget priorities outlined today represent our continued commitment to the working families of New Jersey, those who struggle in the face of high cost-of-living, and who need real economic relief. Specifically, I am pleased to see the significant investments in property tax relief programs, as well as those that make housing more affordable, and homeownership more attainable.

“Grant programs incentivizing Accessory Dwelling Units are a smart, innovative way to increase the stock of affordable housing, and perfectly complements my legislative proposal to streamline ADU development. The funding expansion for the Downpayment Assistance Program continues the work we’ve done already to assist first-time and first-generation homebuyers. These investments, along with millions for home repair and revitalization, will go a long way in addressing our housing crisis.

“I look forward to working in the coming months with my colleagues and Governor Murphy to finalize a budget which delivers on these promises and that can contribute to meaningful, truly transformative improvements in the lives of residents throughout the state.”

ASSEMBLY MAJORITY LEADER LOUIS GREENWALD

“I’m encouraged by Governor Murphy’s proposed budget, which includes continued investment in record property tax relief for seniors and working families, expanded healthcare coverage for our children, protections for women’s reproductive health, and lower prescription drug costs for seniors.

“Culminating a seven-year journey to correct disparities in educational support for our school districts, for the first time ever, we are on track to fully fund the school funding formula—ensuring students across the state have equal access to the best schools in the nation.

“While some claim to be the party of fiscal responsibility, we’ve received more credit upgrades in the past three years than the State has had in the prior 30. These upgrades are the result of fiscal responsibility and promises kept in paying our bills and fully funding our schools and pension system. Together, we’re ensuring that future generations are not saddled with the poor decisions of the past and are instead set up for success long into the future.”

ASSEMBLY BUDGET COMMITTEE CHAIR ELIANA PINTOR MARIN

“It is clear to see how proud the Governor is that New Jersey was selected to host the FIFA World Cup Final in 2026. We share in this enthusiasm and imagine that a great deal of effort went into securing this honor. We’d like to see the same effort applied to creating affordable, healthy, walkable, resilient communities in New Jersey, but we did not see those priorities reflected in this budget.

“While the Legislature is forging ahead with passing the affordable housing bills S50/A4 that will streamline the process that assigns towns their affordable housing obligations, the Governor missed an opportunity to match this effort with additional funding for municipalities to better plan their housing. Without better planning, towns miss the opportunity to use affordable housing to create more diverse, vibrant, compact, mixed-use communities.

“Planning dollars are critical for planning affordable housing, but also for planning parks, trails, and infrastructure. The inability of New Jersey communities to invest in good plans keeps them and the state from accessing federal implementation funds, and limits progress.

“We were glad to hear that the Governor supports Accessory Dwelling Units as an important way to produce more much-needed housing. We ask that the Legislature advance legislation that has already been introduced that will make it easier for homeowners to create these homes throughout New Jersey.”

ASSEMBLY REPUBLICAN CONFERENCE LEADER CHRISTOPHER DEPHILLIPS

“Make no mistake, this so-called transit fee is the corporate business tax surcharge lite and it only exists to feed the Murphy administration’s insatiable appetite for spending taxpayers’ dollars.  While neighboring states are realizing the benefits of lowering their corporate taxes, New Jersey raises taxes and breaks commitments to the business community. The spending, the deficit and the constant tax increases are unsustainable. There will be a fallout and it will impact every resident in New Jersey.

“These big companies have the ability to easily relocate to a more business-friendly state, which will eat into New Jersey’s bottom line, but more importantly hurt hardworking families who will either be forced out of a job or out of New Jersey. The businesses that do stay will pass that increase onto consumers who are already struggling financially.  New Jersey cannot afford to keep Democrats in power.”

ASSEMBLYWOMAN VICKY FLYNN

“It is hard to fathom how the Governor’s budget makes New Jersey more affordable. Starting with school funding – while the Governor announced the budget increases aid for schools on a state wide basis, it’s not clear whether money will alleviate the tens of millions of dollars Monmouth County schools have lost in state aid in recent years. I call upon the Governor to ensure Monmouth County schools are spared any further losses in state aid. We need to commit to supporting our schools at the local level.”

ASSEMBLYMAN GERALD SCHARFENBERGER

“In Governor Murphy’s budget address, we see a disconcerting trend of massive spending increases which will have a crushing impact on local taxpayers and small businesses across our state. How can NJ recover from a $55.9 BILLION spending spree with NJ taxpayer dollars with a budget that includes a $3.2 billion deficit? The unchecked growth in spending in this State threatens the economic well-being of New Jersey and jeopardizes our ability to foster an environment where businesses can thrive, and families can prosper. We call on Governor Murphy to exercise fiscal restraint and work towards developing a bipartisan budget that prioritizes the needs of our constituents while ensuring long-term financial stability for the state.”

FORMER REPUBLICAN GUBERNATORIAL CANDIDATE JACK CIATTARELLI

“This latest Murphy budget isn’t about what’s best for struggling New Jersey taxpayers or job creators, nor does it improve the future economic and fiscal stability of the state. Rather, this budget is about what’s best for Tammy Murphy’s flailing campaign – pandering to liberal Democrats who vote in primary elections – and a betrayal of what the governor promised the state’s business community just weeks ago.

NEW JERSEY WORKING FAMILIES STATE DIRECTOR ANTOINETTE MILES

“New Jersey Working Families is pleased that Governor Murphy has announced a budget that secures a dedicated funding source for NJ Transit by moving us toward tax fairness with a new corporate transit tax targeting New Jersey’s mega-corporations. We know that powerful businesses have strenuously opposed paying their fair share of taxes, and today’s announcement is an important step toward securing a bright future for our state’s public transit system and ensuring that it will be able to continue to provide mobility for working families traveling to work, doctor’s appointments, and to see friends and family.

“However, the fight is far from over. The funding proposal Governor Murphy laid out today fails to avert a crushing proposed fare hike that will increase congestion even as it drives up costs for working families. At the same time, this new proposal fails to secure long-term funding for other critical state programs that had previously received support through the now-expired Corporate Business Tax surcharge.

“Despite continued opposition from corporate special interests, we remain undaunted in our fight for continued tax fairness. We look forward to working with Governor Murphy and the Legislature to build off the proposal today to deliver a budget that delivers for working families across New Jersey.”

MCCARTER & ENGLISH GOVERNMENT AFFAIRS PRACTICE CHAIR GUILLERMO ARTILES

“Governor Murphy’s heart was on display: budget focus on pre-schoolers, teachers, nurses, LGBTQ and immigrants. All while presenting a fiscally responsible $6B surplus.”

MAKE THE ROAD NEW JERSEY

“Working class New Jersey families of color are caught in a cycle of inflation like never before and are struggling everyday to pay rent and utilities, put food on the table, afford childcare, and now face a 15% fare hike when we take the bus to work. Governor Murphy’s move to reinstate a partial corporate business tax to fund NJTransit is an important step to make the wealthiest corporations – now reaping record profits — pay their part to keep our state afloat. Governor Murphy’s announcement today comes after months of organizing led by workers, tenants and commuters, teachers and parents, fighting to keep the vital services we rely on.  We commend Governor Murphy for his action today and urge him and the legislature to fully reinstate the CBT surcharge so that we can fund and expand health care, transportation and education and stop fare and toll hikes on working families.”

NEW JERSEY POLICY PERSPECTYIVE ANALYST ALEX AMBROSE

“It’s hard to overstate how big of a deal this is for transit riders and the state as a whole. The governor’s proposal would finally provide stable, dedicated funding to an agency that’s never had it, setting a strong foundation to protect NJ Transit now and in the future. This is exactly the type of thinking needed to get NJ Transit back on track, and it’s long past time that big corporations pay for the infrastructure that helps them generate their record-breaking profits. At the same time, we can’t forget that riders are staring down a potential double-digit fare hike, and the agency is still raiding its capital budget, so there’s a strong argument for bringing back the full corporate surcharge to spare commuters from shouldering that burden.”

FAIR SHARE HOUSING CENTER DIRECTOR OF RACIAL JUSTICE POLICY JAMES WILLIAMS

“Today’s remarks are promising for New Jersey families who are struggling to keep up with skyrocketing housing costs. The announcement of additional funding for affordable housing is a step in the right direction, though ultimately much more needs to be done to address our state’s dire housing shortage.

“We particularly appreciate Gov. Murphy emphasizing his support for Senate Bill 50/Assembly Bill 4. The Assembly already has passed this crucial affordable housing legislation — we join Gov. Murphy’s call for the Legislature to complete its work and ask Senate leadership to put the bill on the Governor’s desk when the Senate next meets on March 18.

“This legislation puts New Jersey on a path toward historic gains in affordable housing production over the next decade. By setting forth clear rules now, municipalities and everyone else involved will understand what’s needed to address New Jersey’s dire housing shortages. We look forward to working to get a final version of the bill on the Governor’s desk in the next month.”

CHEMISTRY COUNCIL OF NEW JERSEY

“As Governor Murphy unveils his budget today, we appreciate the governor’s commitment to affordability and fiscal responsibility, as highlighted in the budget address.,” said Dennis Hart, executive director of the Chemistry Council of New Jersey. “However, we are concerned by the introduction of another corporate business tax that further burdens the business community. This decision comes at a time when states like Pennsylvania are reducing their taxes to attract and retain businesses, adding another disincentive to staying and growing in New Jersey.  The chemical sector in New Jersey stands as the largest manufacturing industry, with a robust $15.48 billion valuation, securing its position as the 8th largest chemistry producer nationwide and employing a workforce of 48,000, including union workers. Beyond economic contributions, the business of chemistry in New Jersey addresses challenges at local, national, and global levels. Through innovation, this industry is actively shaping a future where lives are healthier, environments are safer, and our world is more sustainable and productive.  Without fiscal discipline and less reliance on corporate dollars, all of this is put in jeopardy. As companies look to reshore manufacturing operations to the US, New Jersey was a potential for future investment and expansion. Now, we fear we will spend our time defending the businesses that are here now to ensure they can stay in New Jersey and not move their investments and products to another state.  The Chemistry Council of New Jersey is eager to collaborate with the administration to find solutions that support our state’s businesses and economy. Just like our members who innovate and find solutions, we are ready to work together to ensure a prosperous future for New Jersey.”

NEW JERSEY POLICY PERSPECTIVE PRESIDENT NICOLE RODRIGUEZ

“The governor’s budget proposal rightly asks the world’s biggest corporations to pay for the infrastructure that helps generate their record breaking profits. In this current era of rising inequality, if corporations are going to swallow a lion’s share of economic growth, they shouldn’t expect to pay less in taxes and have working families make up the difference. The new corporate transit fee is a testament to the tireless advocacy of workers, transit riders, advocates, and local elected officials in every corner of the state who fought for a fairer tax code.

“This budget proposal still has some red flags that lawmakers will have to address. Even with a strong commitment to long standing funding needs like pensions and schools, the budget proposal still erodes the state’s surplus to fund basic operations. Meanwhile, most programs that promote affordability for low- and moderate-income households like the Child Tax Credit and WorkFirst New Jersey received flat funding – a functional cut in a time of inflation. As New Jerseyans face down fare hikes and cost increases, the onus now shifts to the Legislature to commit to a full reinstatement of the corporate surcharge make the state affordable for all.”

COMMERCE AND INDUSTRY ASSOCIATION OF NEW JERSEY PRESIDENT ANTHONY RUSSO

“While there are many good initiatives and programs in the Governor’s proposed budget, funding New Jersey Transit, through a new corporate transit tax, on the backs of our New Jersey’s businesses, at a time when costs of doing business continue to rise, will only increase the burden on our employers.  CIANJ urges the Governor, and ultimately the Legislature, to withdraw this proposal and instead allocate federal funds to such a purpose.”

EDUCATION LAW CENTER RESEARCH DIRECTOR DANIELLE FARRIE

We applaud Governor Murphy for proposing full state funding of the school funding formula in his FY25 State Budget. It has taken a decade and a half to reach the necessary level of state aid to schools determined by the formula, so this is no small accomplishment. We also support the Governor’s commitment to expansion of high-quality preschool across the state, adding 1000 new seats in FY25. We urge the Legislature to support the Governor’s proposals and New Jersey public school students.

But reaching full state funding and supporting preschool are just a part of what’s needed to make sure all public schools have the resources to provide a thorough and efficient education for their students. State aid reductions implemented through the S2 legislation have proven to be harmful to students, and they will continue this year as S2 sunsets. Districts need additional tools, such as the property tax cap adjustment that would allow some districts to go beyond the 2% cap to fill budget gaps, and safeguards, such as proactive stabilization aid, so the most harmed districts can avoid the turbulence of unnecessary staff layoffs and program cuts.

We are disappointed to see no new investments in the Schools Development Authority to fund critical renovations and capital projects for aging, overcrowded and out-of-date school facilities in urban communities, and a very limited amount (in fact, a decrease from prior years) for emergent facilities projects in SDA districts.

Additionally, the upcoming review of the formula that’s required every three years must address the significant changes to the state’s learning standards and advancements in best practices around teaching and learning so that all schools have the resources needed to ensure school success for all learners. The Department of Education will require additional funding to support a thorough review with the help of outside experts. We recommend an allocation of $1 million in the FY25 Budget for this purpose.

“The governor’s budget proposal rightly asks the world’s biggest corporations to pay for the infrastructure that helps generate their record breaking profits. In this current era of rising inequality, if corporations are going to swallow a lion’s share of economic growth, they shouldn’t expect to pay less in taxes and have working families make up the difference. The new corporate transit fee is a testament to the tireless advocacy of workers, transit riders, advocates, and local elected officials in every corner of the state who fought for a fairer tax code.

“This budget proposal still has some red flags that lawmakers will have to address. Even with a strong commitment to long standing funding needs like pensions and schools, the budget proposal still erodes the state’s surplus to fund basic operations. Meanwhile, most programs that promote affordability for low- and moderate-income households like the Child Tax Credit and WorkFirst New Jersey received flat funding – a functional cut in a time of inflation. As New Jerseyans face down fare hikes and cost increases, the onus now shifts to the Legislature to commit to a full reinstatement of the corporate surcharge make the state affordable for all.”

NEW JERSEY FUTURE EXECUTIVE DIRECTOR PETER KASABACH

“It is clear to see how proud the Governor is that New Jersey was selected to host the FIFA World Cup Final in 2026. We share in this enthusiasm and imagine that a great deal of effort went into securing this honor. We’d like to see the same effort applied to creating affordable, healthy, walkable, resilient communities in New Jersey, but we did not see those priorities reflected in this budget.  While the Legislature is forging ahead with passing the affordable housing bills S50/A4 that will streamline the process that assigns towns their affordable housing obligations, the Governor missed an opportunity to match this effort with additional funding for municipalities to better plan their housing. Without better planning, towns miss the opportunity to use affordable housing to create more diverse, vibrant, compact, mixed-use communities. Planning dollars are critical for planning affordable housing, but also for planning parks, trails, and infrastructure. The inability of New Jersey communities to invest in good plans keeps them and the state from accessing federal implementation funds, and limits progress. We were glad to hear that the Governor supports Accessory Dwelling Units as an important way to produce more much-needed housing. We ask that the Legislature advance legislation that has already been introduced that will make it easier for homeowners to create these homes throughout New Jersey.”

NAIOP NEW JERSEY CEO DAN KENNEDY

“New Jersey Governor Phil Murphy’s plan to impose a new fee on trucks delivering goods to all New Jersey warehouses will force residents to pay more for practically everything they buy. The fee is a ‘tax on everything.’”

“The cost of this fee will be felt by all New Jerseyans, regardless of whether they shop online or in person. Practically everything bought in New Jersey is first stored in a warehouse in New Jersey. This fee will force prices for food, prescription medication, baby formula, diapers, clothes, books, school supplies and more to climb even higher in our state.”

“While a vocal minority of the Governor’s supporters oppose warehouses, the truth is that warehouses subsidize property taxes for millions of New Jersey homeowners. Without the tax revenue towns receive from warehouses, most homeowners would likely be paying significantly more each year for property taxes.”

AARP STATE DIRECTOR CHRIS WIDELO

“We applaud Governor Murphy for including a number of AARP New Jersey’s priorities in his Fiscal Year 2025 state budget proposal – like significant property tax relief, funding for affordable housing options, funding for RetireReady NJ and a full pension payment – which will help older adults remain in their homes and communities.

“AARP’s mission is to empower people to choose how they live as they age, and an important part of choosing how we live is being able to choose where we live. Seventy-seven percent of people 50 and older want to age in their own homes; however, New Jersey’s high cost of living, including the highest property taxes in the nation, has made it unaffordable for far too many.

“Last year, with the support of the NJ Legislature, Governor Murphy, Speaker Coughlin and Senate President Scutari took historic steps to keep property taxes more affordable by enacting the StayNJ property tax relief program, increasing the ANCHOR refund for older homeowners and renters, and increasing the income eligibility limits for the Senior Freeze property tax relief program. With New Jersey’s highest in the nation property taxes now averaging $9,800, which is up more than 3% from the previous year, the promise of significant property tax relief is more important than ever.

“StayNJ, which will go into effect in 2026, will provide the kind of bold and transformational relief that so many New Jerseyans need to stay in the Garden State. We applaud the Governor’s proposal to follow through on his commitment to fully fund critical property tax relief programs like StayNJ, ANCHOR and Senior Freeze. Older New Jersey residents are counting on and planning for this property tax relief.

“AARP also supports the Governor’s proposal to fund affordable housing options like accessory dwelling units (ADUs). ADUs, which are independent housing units typically created on single-family lots, provide an affordable, accessible housing option for people of all ages. According to AARP’s 2021 Home and Community Preferences survey, most respondents would consider building an ADU to provide a home for a loved one in need of care.

“AARP applauds the Governor’s proposal to make a full pension payment for the fourth year in a row. This payment will significantly strengthen the financial health of these systems, which is critical to the retirement security of hundreds of thousands of New Jersey retirees and their families, as well as save all taxpayers money by reducing the state’s unfunded liability.

“AARP has long advocated for expanding access to retirement savings to improve financial security. There are currently 1.7 million private-sector, hardworking New Jerseyans who do not have a way to save for retirement through their employer. We are pleased the Governor’s state budget proposal includes funding for RetireReady NJ, which is a public-private partnership that will allow private-sector workers an affordable, voluntary and portable retirement savings program at work. RetireReady NJ will launch a pilot program this Spring.

“Financial security in retirement is crucial to helping people remain in their homes and communities and is a core component of our mission to enhance the quality of life for all as we age, including for generations to come.

“In addition to high property taxes, too many people are struggling to afford things like groceries, gas and medication. AARP commends the Governor’s proposal to continue to support two pharmaceutical assistance programs, Pharmaceutical Assistance to the Aged & Disabled (PAAD) and Senior Gold, which have helped tens of thousands of seniors afford their prescription drugs.

“On behalf of AARP New Jersey’s more than 1 million Garden State members and all older New Jerseyans, we look forward to working with the Governor and the NJ Legislature in the coming months to finalize a budget that includes AARP New Jersey’s priorities to help ensure health and financial security for all.”

NEW JERSEY BUSINESS AND INDUSTRY ASSOCIATION PRESIDENT MICHELE SIEKERKA

“In June, Gov. Phil Murphy was asked at a press conference if he would rule out raising taxes at a time of softening revenues to fund the Stay NJ program.

“I think I can say definitively, yes, we rule it out – because it’s kind of crazy to raise taxes to deliver tax relief,” he said with his legislative leaders at his side.

“Just two weeks ago, the governor was asked on “Ask the Governor” if he was having second thoughts about sunsetting the Corporate Business Tax surtax that had earned New Jersey the highest CBT rate in the nation.

“Said the governor: ‘We are top four in the country on corporate tax rates. So, we’re already a very expensive state…My heart, if you will, is not bleeding (for corporations), but we also have to be cold blooded about our economic development strategy. We need the jobs that those big companies bring to New Jersey.’

“Yet, just days later, we are here with another new and unnecessary corporate business tax of a different name, returning New Jersey to its extreme outlier status for business taxes after seven weeks – retroactive to Jan. 1, to add insult to injury.

“We note that the added $10 million revenue threshold of the new CBT tax in his budget proposal changes almost nothing about the negative impact on New Jersey’s business competitiveness in attracting corporate job creation and capital investment. It is an unfair and undeniable negative that delivers another serious blow to our business reputation.

“That Governor Murphy would re-commit to a new business tax at a time of a multi-billion-dollar surplus to fund NJ TRANSIT when there is no correlation between those impacted corps and public transportation – which he acknowledges himself – is nothing short of a punitive action against our largest job providers. It is a punishment they do not deserve.

“Simultaneously, our neighbors in Pennsylvania are lowering their top CBT rate to 4.9% – and funding its transportation system without using corporate taxes. Go figure.

“Further, the governor’s sudden reversal on the surtax, with no forewarning, is simply bad form. Businesses require the ability to plan to be successful. When you make promises that drive investment, and then renege on them a few weeks later, it goes well beyond creating terrible policy.

“It either reaffirms, with startling conviction, New Jersey’s anti-business climate, messaging to businesses here and across the nation that they can place no trust in their state leaders. Or it shows the state really is a fiscal mess, which was only masked by federal dollars indirectly funding shortfalls in the short term.

“Our legislators need to do better by our business community – period, full stop.

“We are calling on them to right this wrong. In the coming days, NJBIA will be messaging our dissatisfaction on behalf of our business community, driving home how our leadership fails to prioritize our businesses. Rather, in fact, they are taking advantage of our business assets and putting them and the tens of thousands of jobs that they represent at risk.

“Our policymakers have created an unsustainable budget and now want to use the business community to make up for their year-after-year irresponsible budget increases.

“In fact, last year’s last-minute pork added to the budget without any transparency is larger than the proposed tax increases. This shows how spending increases are the problem, not revenue. It is not acceptable.

“To add further insult, there’s another reported effort in this budget to tax businesses with a warehousing trucking fee. New Jersey is a logistics state, so now we’re going to punish our warehouses, drivers and consumers for that, too?

“The governor and legislative leadership can say what they want about their supposed support of New Jersey businesses small and large. But talk is cheap. And operating a business here is anything but.

“Throughout the budget process and forward we will hold our policymakers accountable to do right by New Jersey businesses.”