Murphy to unveil his budget as NJ's governor

Lester Mason
March 14, 2018

While Mr. Christie was still in office, many Democrats, including Mr. Sweeney, supported Mr. Murphy's proposal to raise taxes on the wealthy. Senate President Steve Sweeney, D-Gloucester, proposed an alternative to Murphy's plan last week that would impose a 3% surcharge on corporations earning more than $1 million in net income to help increase school funding through $657 million of new revenue.

Murphy wants to restore the sales tax to 7 percent.

New Jersey Governor Phil Murphy announced Tuesday that the state will triple spending on New Jersey Transit and infrastructure.

Following through on a campaign promise, he proposed raising the tax on incomes over $1 million from the top bracket of 8.97 percent to 10.75 percent.

MARIJUANA: Legalize recreational use by January 1, 2019 and expand medical marijuana. The sales tax decreased from 7 percent to 6.875 percent on Jan. 1, 2017, and to 6.625 percent this January. Projected revenue: $765 million. These include combined reporting with a limited "water's edge" election, market-based sourcing and reinstituting the taxation of global holding companies.

"This budget meets the standards by which we will build a stronger and fairer New Jersey that works for all of our residents", Murphy said. "This is going to force more middle-class New Jerseyans to flee the state".

"It's no secret that we face real challenges", Murphy told lawmakers in a speech.

On the spending side, Murphy is seeking to increase the state subsidy of NJ Transit by $242 million.

Adjusted for inflation, New Jersey's revenues are 6 percent below their pre-recession peak, compared with average national growth of 6.5 percent and New York's 14 percent growth, acting State Treasurer Elizabeth Maher Muoio said.

"Our pension crisis was decades in the making", said Murphy, who added he plans to achieve savings within the pension system fees by divesting from hedge funds. No districts would be cut.

The budget includes more spending on schools. Murphy also mentioned plans to make community college tuition free for students.

Murphy's proposes contributing $3.2 billion toward the state's pension system, which now receives funding from New Jersey Lottery revenues under legislation signed by Christie a year ago.

Murphy says he wants to see minimum wage increased to $15 per hour, along with paid sick leave for all workers in the state. The administration did not have any estimates on how much that could save New Jersey taxpayers.

Other reports by Iphone Fresh

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