Gov. Murphy Proposes $58 Billion Budget
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February 26, 2025
Governor’s Final Budget Includes $1.2 Billion Deficit
On Feb. 25, Governor Phil Murphy delivered his budget proposal for New Jersey’s 2026 fiscal year, which begins July 1. Budget spending is $1.4 billion (2.7%) more than the signed current fiscal year budget of $56.6 billion.
The proposed $58.05 billion budget includes the following:
- $7.2 billion full pension payment
- $6.3 billion surplus
- Nearly $4.3 billion in direct property tax relief
- $1.3 billion for pre-K and $12.1 billion for K-12 schools
- $1.5 billion for NJ Transit, including $815 million from the corporate transit fee
- $1.2 billion in new fees and taxes, including tax increases for reality transfers, sports betting, alcohol, adult-use marijuana and cigarettes
- $100 million for expanding apprenticeship programs and workforce development
- Tax credit for manufacturing next-generation products in New Jersey
- A cap on new discretionary spending
There is a $1.2 billion structural budget deficit.
The budget has to be approved by the Assembly and the Senate and signed into law by June 30.
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The information in this guide has been gathered from many sources, including the Internal Revenue Service, the Social Security Administration, state agencies, professional organizations and members of the NJCPA. The majority of state agencies offer online and prerecorded services. It’s best to check online or call before you visit.
Material contained within this guide should be augmented by, and used in accordance with, a certified public accountant's professional judgment. Your CPA can properly apply the tax laws and regulations to the facts and circumstances of your particular situation. For help with locating a CPA, visit findacpa.org.
The New Jersey Society of Certified Public Accountants is not responsible for any claims arising as a result of this information or its usage.
This guide was updated in August 2024. Future users of this material are cautioned that some portions, particularly tax-related information, may become outdated.