Governor Murphy Signs FY21 Budget for New Jersey

 – September 30, 2020
Governor Murphy Signs FY21 Budget for New Jersey

On Sept. 29, Governor Phil Murphy signed New Jersey’s fiscal year 2021 budget, ending months of speculation about taxes and borrowing and leaving business leaders shaking their heads.

The budget is $1.5 billion higher than the fiscal year 2020 budget, an increase of about 3.5 percent. It includes $700 million in tax hikes and $4.5 billion in borrowing. When added to the “mini budget” that the Governor signed in June to cover the months of July through September, the total budget is $40.4 billion. The budget also includes a $2.5 billion surplus.

“Considering the damage that the coronavirus pandemic has done to the state’s economy and fiscal health, this budget is fiscally irresponsible to say the least,” said NJCPA CEO & Executive Director Ralph Albert Thomas, CPA (DC), CGMA. “This budget is the opposite of the austerity budget these times call for.”

The $700 million in tax hikes includes a corporate business tax (CBT) surtax of 2.5 percent on corporations with income over $1 million, giving New Jersey the highest CBT in the country. This surtax will be in effect for four years and continues a surtax that was supposed to be phased out next year.

Additionally, the budget extends the “millionaires’ tax” of 10.75 percent to income over $1 million. Previously it only applied to income over $5 million.

Also signed into law was a rebate program of several hundred million dollars that provides rebates of up to $500 to 800,000 households. The rebates are limited to two-parent households with less than $150,000 in gross income and at least one dependent child and single-parent households with no more than $75,000 in gross income and at least one dependent child. The proposal still needs to be funded in next year's budget.

A $4.7 billion payment to the public employees’ pension fund, when combined with the cost of health benefits for the public workers, eats up approximately 25 percent of the budget.

One bright spot in the budget was the restoration of $275 million in funding for the Homestead and $220 million for Senior Freeze property tax relief programs. The Homestead credit is a popular property tax relief program for about 580,000 seniors, disabled or low-income homeowners. Senior and disabled homeowners with income below $150,000 average $534 benefits and other eligible homeowners with less than $75,000 receive an average of $410.

 

 

Related events

October 28, 2020Webcast
Featured
October 23, 2020Webcast
October 27, 2020Webcast
October 27, 2020Webcast
October 28, 2020Webcast
October 28, 2020Webcast
November 2, 2020Webcast
November 4, 2020Webcast
November 4, 2020Webcast
November 4, 2020Webcast
November 5, 2020Webcast
November 5, 2020Webcast
November 5, 2020Webcast
November 6, 2020Webcast
November 6, 2020Webcast
November 9, 2020Webcast
November 9, 2020Webcast
November 10, 2020Webcast
November 10, 2020Webcast
November 10, 2020Webcast
November 10, 2020Webcast
November 11, 2020Webcast
November 12, 2020Webcast
November 13, 2020Webcast
November 13, 2020Webcast
November 17, 2020Webcast
November 17, 2020Webcast
November 17, 2020Webcast
November 18, 2020Webcast
November 18, 2020Webcast
November 18, 2020Webcast
November 20, 2020Webcast
November 20, 2020Webcast
November 20, 2020Webcast
November 20, 2020Webcast
November 20, 2020Webcast
November 23, 2020Webcast
November 24, 2020Webcast
November 25, 2020Webcast
November 30, 2020Webcast
November 30, 2020Webcast
December 2, 2020Webcast
December 3-4, 2020Webcast
December 3, 2020Webcast
December 3, 2020Webcast
December 4, 2020Webcast
December 4, 2020Webcast
December 7, 2020Webcast
December 7, 2020Webcast
December 7, 2020Webcast
December 8, 2020Webcast
December 8, 2020Webcast
December 8, 2020Webcast
December 9, 2020Webcast
December 10, 2020Webcast
December 11, 2020Webcast
December 14, 2020Webcast
December 14, 2020Webcast
December 14, 2020Webcast
December 15, 2020Webcast
December 15, 2020Webcast
December 15, 2020Webcast
December 16, 2020Webcast
December 17, 2020Webcast
December 17, 2020Webcast
December 17, 2020Webcast
December 17, 2020Webcast
December 17, 2020Webcast
December 18, 2020Webcast
December 18, 2020Webcast
December 21, 2020Webcast
December 22, 2020Webcast
December 23, 2020Webcast
December 29, 2020Webcast
December 29, 2020Webcast
December 30, 2020Webcast
January 4, 2021Webcast
January 8, 2021Webcast
January 8, 2021Webcast
January 8, 2021Webcast
January 11, 2021Webcast
January 11, 2021Webcast
January 13, 2021Webcast
January 14, 2021Webcast
January 19, 2021Webcast
January 20, 2021Webcast
January 20, 2021Webcast
January 20, 2021Webcast
January 20, 2021Webcast
January 21, 2021Webcast
January 21, 2021Webcast
January 25, 2021Webcast
January 26, 2021Webcast
February 10, 2021Webcast
February 10, 2021Webcast
February 11, 2021Webcast
February 18, 2021Webcast
February 18, 2021Webcast
February 19, 2021Webcast
March 3, 2021Webcast
March 3, 2021Webcast
March 10, 2021Webcast
April 23, 2021Webcast
May 5, 2021Webcast
May 5, 2021Webcast
May 21, 2021Webcast
June 15-18, 2021Atlantic City