Gov. Phil Murphy presents $48.9 billion budget, highlights new property tax relief program
TRENTON, N.J. (CBSNewYork) -- New Jersey Gov. Phil Murphy presented his $48.9 billion budget address Tuesday afternoon, highlighting a new property tax relief program.
Back in person with the legislature, Murphy promised not to raise taxes as the state moves forward economically beyond the pandemic.
His biggest initiative -- ANCHOR, or the Affordable New Jersey Communities for Homeowners and Renters property tax relief program.
"More than 1.15 million homeowners with incomes up to $250,000 will receive direct relief, averaging nearly $700. More than 600,000 renters making up to $100,000 will receive as much as $250 in relief," Murphy said.
Turning to schools, the governor is dedicating roughly 24% of state expenditures to direct aid to education, saying this is critical to undo pandemic learning loss and meet mental health challenges posed by the past two years.
Murphy also addressed the pension burden, saying for the second year in a row, payments will be met.
He also proposed a $300 million affordable housing production fund.
"This fund will help us build the entire current backlog of 3,300 already approved, but still yet-to-be-built, 100% affordable housing units by the end of my second term," Murphy said.
Political analyst Guillermo de Veyga says this budget with a focus on the middle class and property tax relief is a step away from the governor's previous progressive initiatives.
"It is a big acknowledgment from his administration, from Governor Murphy, in terms of saying, you know, the last election was very close and I am hearing you, New Jersey," de Veyga said.
Republican leaders are answering with their "Give It Back" plan, saying the state's surplus from federal COVID-19 relief funds and strong tax revenues should lead to more money flowing back into taxpayer wallets.
"What the Republicans say is give it back and give it back now. We propose a program of $3 million where most families will receive $1,000 back in 2022," said Republican Sen. Steven Oroho.
The governor also promised no fair hikes for New Jersey Transit, more money to continue to fight the opioid crisis, funding to make community college affordable, job training programs and a "Cover All Kids" initiative, ensuring every child has access to health care.
The governor also says the state is taking action to ensure New Jersey taxpayer dollars are not supporting Russia's invasion of Ukraine.