New Jersey Lawmakers Approve $58.8 Billion Spending Bill Amid Party-Line Votes

Strategic Insights -

Democratic lawmakers approved a record-breaking $58.8 billion spending bill in the final hours before a potential government shutdown, despite criticisms from Republicans and some within the administration. The budget includes significant funding for key areas such as pension payments, K-12 schools, and property tax relief, but also dips into state reserves to address a structural deficit. The bill now awaits Governor Phil Murphy's signature.

Key Takeaways:

  • The $58.8 billion spending bill was approved by the Senate in a 26-13 vote and by the Assembly in a 52-27 vote, with one abstention.
  • The budget maintains a full pension payment for the fifth year in a row and includes record amounts of property tax relief, with a focus on seniors.
  • The plan includes a $6.7 billion surplus at the end of the fiscal year, but still runs a structural deficit of $1.5 billion.
  • Republicans criticized the bill's size and its reliance on one-shot sources, as well as its diversions of funds from the state's Clean Energy Fund and opioid settlement money.
  • The budget includes new taxes on high-value property sales, online wagering wins, cigarettes, and e-cigarette fluid.
  • Democrats praised the bill for its reversals of proposed cuts and its investment in key areas such as education and property tax relief.

Statistics:

  • $58.8 billion: total spending in the approved budget
  • $6.7 billion: forecasted surplus at the end of the fiscal year
  • $1.5 billion: structural deficit in the budget
  • $8.8 billion: increase in pension payments and school aid under Governor Murphy
  • $45 million: diversion of opioid settlement money to the state's general fund
  • $140.1 million: funding for NJ Transit in the coming fiscal year
  • $50 million: diversion of clean energy money for NJ Transit into the state budget

Sources:

  • New Jersey Monitor: "Budget Panels Approve $58.8B Spending Bill in Late-Night Votes"
  • New Jersey Monitor: "Critics Accuse New Jersey Legislators of Stealing Opioid Settlement Funds"
  • New Jersey Monitor: "Budget Would Pull $50 Million from NJ Transit's Clean Energy Fund"
  • New Jersey Sierra Club: Twitter statement by Anjuli Ramos-Busot