Legislative committees clear budget bill for Monday vote

State legislative budget committees approved a $58.8 billion budget Friday night, clearing the way for floor votes and passage on Monday.

The topline figures are largely similar to what Gov. Phil Murphy offered up in his budget proposal earlier this year. The governor requested $58.1 billion in spending, but because of unexpected revenue boosts, the state is set to have a higher-than-expected surplus of $6.7 billion when the budget is all said and done. The state is set to run a $1.5 billion structural deficit for the year. The budget passed on party lines.

The Friday night hearings were needed after the Office of Legislative Services determined they needed the full workday Friday to draft the budget after agreements were finalized earlier in the week. The Senate Budget and Appropriations Committee passed its bill and adjourned at about 10 p.m.; the Assembly Budget Committee cleared the budget and adjourned at 11:21 p.m.

Tax increases for cigarettes, e-cigarettes, and property transfers worth more than $2 million were agreed upon.

Overarching concerns over potential cuts to federal funding sources cast uncertainty over the budget proceedings. The think tank New Jersey Policy Perspective said potential cuts to Medicaid would put New Jersey’s budget in an untenuous position, and said the state should have worked to further increase revenue. Legislators acknowledged that, depending on what happens with President Donald Trump’s “One Big Beautiful Bill,” adjustments might need to be made to the budget after the fact.

“Lawmakers continued to ignore federal revenue cuts coming for Medicaid and food assistance and failed to protect the much-needed cash reserves to help the state protect its residents,” Nicole Rodriguez, the president of New Jersey Policy Perspective, said in a release. “While other states build up their savings to help smooth the potentially devastating cuts, the state’s political leadership chose instead to conduct business as usual in Trenton, putting off difficult decisions until later in the year when options will be limited and revenue will be harder to raise.”

While Democrats unanimously supported the budget, there was some consternation over $100 million in planned cuts made to the State Employees’ Health Benefits Plan. Tonya Hodges, a representative of the Communications Workers of America Union, which represents tens of thousands of public-sector workers, said the plan to cut the funding is a violation

“We are deeply concerned and outraged by the last-minute attempts to achieve $100 million in savings from the State Health Benefits Plan through a process that blatantly violates our collective bargaining rights,” Hodges told the Assembly Budget Committee.

State Sen. Linda Greenstein (D-Plainsboro), for example, said she would vote for the bill but worried the planned cut “does not respect” the collective bargaining process. The senator said she hopes to address the issue with further collaboration, especially as the savings are not yet fully finalized.

“Anyone that honors labor knows that collective bargaining is the linchpin of that process,” Greenstein said.

Republicans criticized the bill, arguing it allowed for too much spending in the state

State Sen. Mike Testa (R-Vineland) said the surplus should have been higher if Democrats had appropriately tightened spending.

A handful of proposals from the governor did not make it into the final budget.

A $1 million proposal from Gov. Phil Murphy to incentivize municipalities to allow 16- and 17-year-olds to vote in school board elections did not make the final budget. The governor touted Newark’s recent embrace of the policy this year and hoped to expand it to other municipalities. But while proponents say it’s not all about turnout, the proposed $1 million in incentives was endangered after youth voters in the city largely no-showed.