Home>Articles>Murphy offers a compromise

Kevin Sanders for New Jersey Globe

Murphy offers a compromise

Budget tensions ease further

By Nikita Biryukov, June 26 2018 5:21 pm

After two days of decreased tension in Budget negotiations, Gov. Phil Murphy has offered legislators a compromise that includes provisions sought by both Murphy and legislative leaders.

Murphy, in a letter to Senate President Steve Sweeney, Assembly Speaker Craig Coughlin and members of the legislature, offered to back a smaller, perpetual increase to the corporate business tax coupled with a “modest” increase in the marginal income tax rate for millionaires and the phased restoration of the sales tax to 7% over a two-year period.

“I believe this compromise fairly balances our mutual concerns while strengthening our fiscal foundation,” Murphy said in the letter, which was provided to reporters by the governor’s office. “Moreover, we will restore value and fairness to New Jersey.”

The letter also held an offer to give lawmakers some of their legislative priorities, including an increase in the Homestead Rebate sought by Coughlin, a tax-amnesty program supported by Coughlin and the school-funding formula pushed by Sweeney.

The offer came during a meeting between the governor and Democratic legislative leaders that lasted a little more than an hour. Sweeney declined to comment on the meeting after it ended.

Assemblyman Speaker Pro Tempore Gordon Johnson told reporters that negotiations continued, though they did so with tensions lower than those the budget fight saw last week.

Besides Johnson, Sweeney and Coughlin, a number of high-ranking New Jersey Democrats were present at the meeting.

Senate President Pro Tempore Teresa Ruiz and Senate Deputy Majority Leaders Sandra Cunningham and Paul Sarlo, who is chair of the Senate Budget committee, were in attendance, as were Assembly Majority Leader Louis Greenwald, Majority Conference Leader Shavonda Sumter and Assembly Budget Chair Eliana Pintor Marin.

It appears as though lawmakers are nearing a budget deal that could prevent an embarrassing government shutdown that’s coming if they don’t pass a budget before the start of July.

Still, no deal was reached on Tuesday.

Sweeney and Coughlin released a statement early Tuesday evening saying that they will give Murphy’s suggestions “full consideration — along with other options we are evaluating.”

We submitted a fiscally responsible budget that meets the state’s priorities, makes the investments needed to move the state forward and protects the interests of New Jersey’s taxpayers,” the Senate President and Speaker said. “We are reviewing the proposal presented by Governor Murphy at today’s meeting with legislative leaders and we will give his offer full consideration, along with other options we are evaluating.”

We submitted a fiscally responsible budget that meets the state’s priorities, makes the investments needed to move the state forward and protects the interests of New Jersey’s taxpayers. We are reviewing the proposal presented by Governor Murphy at today’s meeting with legislative leaders and we will give his offer full consideration, along with other options we are evaluating.”

EDITOR’S NOTE: This story was updated to include a response from Sweeney and Coughlin.

Governor Murphy's Letter to the Legislature
Spread the news:
RELATED ARTICLES
Filter by
Post Page
Feature Governor The Inside Edge Highlight
Sort by

Norcross can’t take Murphy in primary, but could cost him re-election

Blue Jersey hasn’t re-elected a Democratic governor since 1977
May 13, 2019 12:56 am

24

Murphy must decide if he wants to keep Flora Castillo on NJ Transit board

On board of embattled agency since 1999, Castillo attends most meetings by phone
February 19, 2019 9:53 am

24

Pro-Murphy group spent $503k on lobbying

New Direction NJ files lobbying report with state
February 18, 2019 1:38 pm

24

Leave a Reply

Your email address will not be published. Required fields are marked *