Gov. Phil Murphy says his proposed budget "will put more than $3.5 billion back into the pockets of New Jersey taxpayers"
TRENTON, N.J. -- Gov. Phil Murphy unveiled his state budget on Tuesday.
Murphy told New Jerseyans his proposed budget will offer tax relief to working-class families and seniors through child tax credits, as well as the ANCHOR Program.
"Our budget will put more than $3.5 billion back into the pockets of New Jersey's taxpayers," Murphy said. "Simply put, our budget will ensure that New Jersey retains its proud reputation as the best place anywhere in America to raise a family."
One 66-year-old told CBS New York anything helps in this tough economy.
"The cost of living is extremely high, the food prices," said Elaine Andrews of Rahway.
READ MORE: Gov. Phil Murphy delivers State of the State Address
The governor is also proposing an increase of $900 million in school funding.
"We will be the first administration, in our state's history, to fully fund New Jersey's school-funding formula," Murphy said.
However, Republicans say 140 school districts will actually see cuts in funding that could lead to property tax increases in some towns.
Municipalities rely on state funding and property taxes for education.
State Sen. Anthony Bucco, who represents Morris County, said, "$130 million of money will be cut from our municipalities, and that's not to mention the 15% fare increase on NJ Transit."
One woman said they can't pay more.
"If the taxes could come down it would be great. We'd like to have lower taxes," said Gail Pantozzi of Union.
The governor also announced a corporate transit fee on corporations to fund NJ Transit, which plans on seeking a 15% fare hike in its upcoming budget.
"We are going to ask the biggest corporations, with net incomes greater than $10 million, to support NJ Transit's future," Murphy said.
READ MORE: Commuter advocates rally against NJ TRANSIT's proposed 15% fare hike that could start this summer
One commuter wasn't so sure. She said she doesn't think anything will help fix NJ Transit's problems.
"I feel a lot of things and a lot of money gets thrown into different stuff, but it doesn't necessarily solve the issue," said Dakota Pizzi of Rahway.
Some small business owners told CBS New York there's not much for them in the budget and that they've struggled since the pandemic.
"We need more help to survive. We need help to survive. We need tax breaks," said Marinos Stratigakis, owner of All'Assassina Restaurant.
Stratigakis owns three fast casual food spots in Union, all connected together. He said he doesn't know if raising taxes on big companies is the solution.
"If you are going to tax one company, those charges are going to come down to us," he said.
The governor said his proposed budget -- a record $54.3 billion -- will also protect reproductive freedom and help veterans' homelessness.
Arrive Together, which pairs police with health care professionals, would also receive money in the state's proposed budget.