TRENTON, NJ -- Gov. Phil Murphy delivered his annual budget address on Tuesday by outlining a Fiscal Year 2022 Budget (FY2022) that includes investments to help New Jersey emerge from the pandemic stronger, fairer, and more resilient.
The governor said that he was proud to unveil this budget, which makes a full pension payment for the first time in more than a quarter of a century, provides the highest level of school funding in history, delivers tax rebates to over 760,000 middle-class families, and provides $200 million in relief for small businesses. Additionally, the plan includes $20M to ensure every child has health care, $18.45 million to address inequities in the criminal justice system, and no NJ TRANSIT fare hike for the fourth consecutive year.
“This budget lives up to our stronger and fairer mission,” said Murphy. “Stronger to come out of the pandemic with an economy that works for every New Jersey family. Fairer to help families and small businesses hit hard and left behind in the pandemic's brutal wake. This budget will continue to stabilize property taxes for hardworking families. This budget will continue the hard work of moving forward – not only from the pandemic – but from years of neglect. Our problems weren’t created overnight and, frankly, they won’t be fixed overnight. But I know that brighter days lay ahead.”
Murphy said that as a result of last year’s millionaires tax enactment, his proposed FY2022 budget includes $319 million in direct tax relief for middle-class families that will provide up to a $500 rebate to over 760,000 couples and individuals with qualified dependents. The budget also includes $1.25 billion in funding to support various property tax relief programs. Additionally, it includes funding to:
- Expand the Veterans’ Property Tax Deduction to those who served in peacetime;
- Make the Child and Dependent Care Credit refundable and expand eligibility to families making up to $150,000, more than doubling eligibility to aid 148,000 taxpayers; and
- Expand eligibility for the Earned Income Tax Credit to roughly 70,000 senior citizens without dependents.
The New Jersey Republican leaders were quick to attack the plan and said it continues trends that have made New Jersey the state with the highest taxes. The GOP said that last year, the governor "forced the state to take on an unnecessary $4.5 billion in debt, only to find at the end of the year, a surplus in the budget."
“One would think that in his first post-pandemic budget proposal, Governor Murphy would focus on the needs of the people of our state, and not the wants of his liberal agenda," NJ GOP Chair Michael Lavery said in statement. "Unfortunately, we’re getting more of the same cut-and-paste liberal tax and spend policy that has driven our state into more debt, placed more of a burden on our citizens, and driven one third of our small businesses to closure."
"Our state needs a new perspective, new ideas for a new era, and most of all, a new Governor,” Lavery added. "He raised taxes, raised fees, and increased the cost of being a New Jerseyan."
To read a Summary of the FY 2022 Budget, click here.
To view Gov. Murphy's budget presentation, visit: