Fiscally Responsible Plan includes a Record Surplus, another Full Pension Payment, and Substantially More Debt Reduction
Budget Makes New Jersey More Affordable by Delivering Record Tax Relief, Historic Levels of School Funding, Aid to Municipalities and Small Businesses
Transformative Investments will Modernize Operations, Continue to Spur Economic Development, and Jumpstart Whole Industries
TRENTON – Governor Phil Murphy today signed the Fiscal Year 2023 (FY2023) Appropriations Act into law. The FY2023 budget builds on the historic progress made over the last four years, maintaining the Governor’s commitment to prioritizing affordability, while delivering record tax relief and making transformative one-time investments.
The budget once again provides the highest level of school funding in history as the State continues to deliver on a seven-year plan to fully implement the constitutionally-sound school funding formula, makes a second consecutive full pension payment for the first time in more than a quarter century, and supports significant investments in the economy.
“This budget both invests in New Jersey’s future while preparing for an uncertain global economy,” said Governor Murphy. “We have wisely avoided using what may be temporary windfalls for long-term programs. At the same time, we are making significant investments in new capital projects that will make New Jersey a better state to live in while creating countless good-paying jobs. This budget continues to make New Jersey a stronger and more affordable state where opportunity can thrive.”
“This year’s budget includes record tax relief that will go directly to the residents of New Jersey. In a time where we are witnessing inflation rise at a rapid rate, the incentives in this budget, such as funding to build affordable housing, will help the households, families, and seniors in our state who need it most,” said Lt. Governor Sheila Y. Oliver, who serves as Commissioner of the Department of Community Affairs. “I am incredibly proud of Governor Murphy, the New Jersey Legislature, and this Administration as a whole for what we have been able to accomplish with this budget. We will continue to meet our promise of making New Jersey a stronger, fairer, more affordable state of opportunity.”
The Governor was joined by Senate President Nicholas Scutari, Assembly Speaker Craig Coughlin, State Treasurer Elizabeth Maher Muoio, Senate Budget Chair Paul Sarlo, and Assembly Budget Chair Eliana Pintor Marin at Cranford High School where he signed the Appropriations Act.
“Since our first days in office, fiscal responsibility has been a guiding principle. Four years later, we have received two of only four credit rating upgrades that the State has seen since the 1960s,” said State Treasurer Muoio. “Going into this year’s budget, the Governor made it clear we needed to continue on this path by building our surplus even higher, reducing our debt even further, meeting our obligations, and delivering tax relief. And that is exactly what we have done.”
This is a budget that puts the focus on our priorities of making New Jersey more affordable, addressing the financial needs of working people and expanding the state’s economy. It emphasizes tax relief, debt reduction, strategic investments and taxpayer safeguards in case of an economic downturn,” said Senate President Scutari. “It includes the largest property tax relief program and the largest surplus in state history, as well as investments in what could be transformational capital projects. We have the benefit of strong revenues, federal funds and a sound fiscal foundation, but we have to be prudent. We want to ensure that the savings and benefits in this budget are sustained.”
“No new taxes, more than two billion in historic tax relief and close to five billion in transformative infrastructure investments – this budget delivers for the working and middle-class people of our state,” said Speaker Coughlin. “Funding childcare, our schools, mass transit, healthcare, housing, help for our small businesses and paying down debt, our strong and fiscally responsible budget meaningfully addresses everyday kitchen table issues for New Jersey families.”
“This is a responsive and responsible budget that addresses the economic challenges of our time. It provides the largest tax cut and the largest surplus in state history. It also makes use of state and federal resources to reduce debt and make strategic investments in our future. And we restored the budget provision that gives the Legislature the shared responsibility for approving the use of federal funds,” said Senate Budget Chair Sarlo. “This is a state budget that will address immediate needs, provide significant tax relief, install economic safeguards and support future opportunities.”
“This is a budget that we should be proud of,” said Assembly Budget Chair Eliana Pintor Marin. “This budget focuses on making massive investments in tax relief to make New Jersey more affordable while supporting middle-class residents and seniors who are struggling. In almost every single area this budget does something to fix a problem, help a group in need, or build upon past success.”
The FY2023 budget agreement forged between the Governor and the Legislature maintains and builds upon the priorities the Governor unveiled during his budget address in March, continuing to get New Jersey’s fiscal house in order while redirecting more than 74 percent of the total budget back out in the form of grants-in-aid for property tax relief, social services, and higher education, as well as State aid to schools, community colleges, municipalities, and counties.
The $50.6 billion budget for FY2023 includes a record $6.8 billion surplus, which is 13.4 percent of budgeted appropriations, roughly three times the surplus proposed in last year’s budget and dwarfing the surplus inherited four years ago.
The budget continues to deliver on the Governor’s promise to public employees by making a $6.82 billion pension payment, including contributions from the State lottery, which marks the second consecutive year that the State will meet 100 percent of the Actuarially Determined Contribution (ADC). With the proposed FY2023 payment, the Murphy Administration will be responsible for nearly 68 percent of State pension contributions since FY1995.
The budget agreement also builds upon the sizable debt reduction