New Jersey Gov. Phil Murphy signs $54.3B budget as Republicans voice transparency concerns

TRENTON, N.J. — New Jersey Democratic Gov. Phil Murphy signed a $54.3 billion budget late Friday, boosting spending 7% over last year, making good on promises to boost education funding, fully fund the state's public pension and implement a new — though partially funded — property tax relief program for seniors.

Murphy signed the budget alongside Democratic legislative leaders in the recently renovated statehouse rotunda and hailed the spending plan as the fulfillment of a promise at the start of his second term to grapple with affordability. He said the budget's senior property tax assistance program and increased school aid amounted to “tackling one of the single greatest and longest standing affordability challenges our state faces.”

The budget is about $1 billion more than Murphy originally proposed earlier this year, and he signed it just hours ahead of a constitutional deadline and amid emphatic protests from Republicans about a lack of transparency.

The budget includes a full public pension payment for a third straight year, a more than $8 billion surplus, increased spending for education and a host of other programs — among them a property tax relief scheme for seniors.

Democrats hailed the legislation as fiscally responsible, living up to promises to pay for the pension, education and delivering millions in property tax assistance in a state with among the highest such levies in the country.

It's also, they say, a departure from the previous GOP administration under Chris Christie — currently a presidential candidate — who saw credit-rating downgrades and whose final state budget was nearly $20 billion under the measure passed Friday. Murphy said Friday that aid to K-12 education is up 30% in his six years, or $2.6 billion.

“This is a rare opportunity to have our cake and have some left over,” said Democratic Assembly member Raj Mukherji during a debate on the budget.

A handful of Republicans backed the budget, though they didn't speak during debate.

But many were skeptical, pointing to treasury reports indicating falling revenue from taxes for the previous month. They also decried the sharp increase in spending over the past decade, calling on Democrats to cut taxes.

“Fifty-four billion dollars? Really?” asked Republican Assembly member Christopher DePhillips. No family in the state has increased its spending as sharply as the state has over the last six years, he added.

Some of their strongest objections revolved around how the final budget was introduced — late at night earlier this week and without the minority party getting to view the document or the public getting to weigh in.

Republican Assembly member Brian Bergen called it “an egregious insult on transparency.”

“This budget was ... prepared behind closed doors,” he said. “And when the budget was finally given at the end nobody had a chance to read it.”

Mukherji defended the process as following the rules and the constitution. Democratic Assembly member John McKeon pointed out that there had been a series of 14 public meetings on the budget. “Big rush,” he said.

Exactly what the increased $1 billion in spending over the governor's proposed budget entailed wasn't immediately clear: GOP lawmakers critically cited millions for a marina in Woodbridge and a French arts museum in Jersey City, among other line items.

“There are many names in this budget that perhaps if I was the sole architect I would not approve,” said Democratic Sen. Paul Sarlo, who chairs the budget committee and authored the spending plan. “Let's not disregard the fact that this budget includes investments in law enforcement, infrastructure, hospitals and health care, open space parks and recreation, local school districts and property tax relief.”

A major new program in the budget is a property tax assistance program for homeowners 65 and older who make $500,000 or less.

They'd qualify for up to $6,500 in property tax relief under the plan, and renters would get up to $700. Those benefits wouldn't take effect until 2026 — time that Murphy and lawmakers said was needed for the economy to ramp up. Critics say it's a gimmick aimed at giving the majority a campaign trail talking point during this year's legislative election.

Murphy has said he's committed to implementing the full rebate program, though it's set to go into full effect just after he leaves office in 2026.

In the meantime, the spending plan provides for a $250 benefit immediately to senior property taxpayers and renters, Murphy has said.

The budget doesn't directly raise any new taxes, lawmakers said, though Murphy and the Democratic-controlled Legislature increased income taxes on those earning more than $1 million in his first term.

Murphy signed the bill just hours ahead of New Jersey's constitutionally mandated budget deadline of July 1.