{"id":14995,"date":"2024-06-30T01:00:46","date_gmt":"2024-06-29T22:00:46","guid":{"rendered":"https:\/\/ch.jfdi.cc\/?p=14995"},"modified":"2024-06-30T01:00:46","modified_gmt":"2024-06-29T22:00:46","slug":"tax-hike-speeds-ahead-in-late-night-vote-on-record-n-j-budget","status":"publish","type":"post","link":"https:\/\/ch.jfdi.cc\/?p=14995","title":{"rendered":"Tax hike speeds ahead in late-night vote on record N.J. budget"},"content":{"rendered":"<p>Facing a deadline just days away, New Jersey lawmakers Wednesday night introduced and quickly began approving a record new $56.6 billion state budget that\u2019s backed by a new tax hike on large companies, adds some funding for property-tax relief, and includes big spending on public schools and pensions.But Democratic leaders once again faced objections from critics who believe the budget process is rushed and not transparent enough, while Republicans and business leaders decried that the state\u2019s taxing and spending continues to grow despite a tough financial outlook.The budget \u2014 which determines how the state government will spend taxpayer money in the fiscal year that begins Monday \u2014 includes revenue from a five-year tax hike on the state\u2019s wealthiest businesses that would ultimately be a dedicated funding source to beleaguered NJ Transit, though not yet. Gov. Phil Murphy and his fellow Democrats who lead the state Legislature agreed to the increase as part of budget negotiations.Lawmakers, meanwhile, added around $700 million in new spending on various projects to the budget proposal Murphy laid out in February.In another new development, the state is also planning to phase out a sales tax waiver on electric cars by next summer, quicker than the three-year phase-out that Murphy originally proposed.Budget committees in both houses of the Democratic-controlled Legislature approved the budget and the business tax along party lines at the Statehouse in Trenton on Wednesday night \u2014 the Senate just before 9:30, the Assembly at about 11 p.m. \u2014 only hours after the bills were formally introduced to lawmakers. A public copy of the 373-page budget was not online to view until Thursday morning.The full Legislature is now slated to pass the measures Friday and Murphy is expected to sign them into law later that evening.Highlights of the budget (A4700) include:<\/p>\n<ul class=\"article__unordered-list\">\n<li><span>A 2.5% surtax \u2014 known as a \u201ccorporate transit fee\u201d \u2014 on the 600 companies in New Jersey that make at least $10 million. It is slated to provide money to NJ Transit, the state\u2019s bus and rail agency, which faces a $766 million financial shortfall starting next summer and has been beset by cancellations and delays of late. But it will funnel money this cycle into the state\u2019s general fund and won\u2019t begin going to NJ Transit coffers until 2026. The tax is retroactive to Jan. 1 and expected to generate about $1 billion annually before ending after five years. It\u2019s on top of the state\u2019s 9% corporate business tax. This also comes as NJ Transit riders are set to see a 15% fare hike starting next month, though this tax will not stop it.<\/span><\/li>\n<li><span>A roughly $7 billion payment to the public-worker pension fund, which supports the retirement of about 800,000 active and retired state and local government workers. This is the fourth straight year there has been a full payment to the long-underfunded system.<\/span><\/li>\n<li><span>A roughly $12 billion full payment to the state school funding formula. This is the first time there is a full payment to the formula, completing a seven-year ramp up.<\/span><\/li>\n<li><span>A \u201crainy-day\u201d surplus fund of nearly $6.2 billion \u2014 about 11% of the budget\u2019s spending.<\/span><\/li>\n<li><span>More than $2 billion to cover a third year of funding for the ANCHOR tax relief program, which gives 1.3 million homeowners up to $1,750 and more than 700,000 renters up to $700 to help offset property taxes.<\/span><\/li>\n<li><span>$220 million more in ramp-up funding for the Stay NJ property tax cut for New Jersey seniors, scheduled to take effect in fiscal year 2026. Questions remain about whether there will be enough funding for it to launch in next year\u2019s budget.<\/span><\/li>\n<li><span>About $700 million for what critics call \u201cChristmas tree\u201d items \u2014 spending on  projects that lawmakers want, usually added in the final days and hours of horse-trading. Among the most expensive this year are $12.5 million for a learning annex for the school district in Wood-Ridge, where Senate Budget Committee Chairman Paul Sarlo is mayor, and $10 million for capital construction at Fairview public schools in Bergen County, which is also in Sarlo\u2019s legislative district.<\/span><\/li>\n<li><span>Lawmakers added $20 million for the state\u2019s community colleges, reversing cuts Murphy proposed.<\/span><\/li>\n<li><span>Phasing out a sales tax exemption on electric vehicle sales. That means people who buy electric cars in the state will have to start paying 3.3% in sales tax for the first time, perhaps as early as the fall. By July 2025, all electric vehicles sold would carry the state\u2019s full sales tax of 6.625%.<\/span><\/li>\n<\/ul>\n<p>Notably not included in the budget:<\/p>\n<ul class=\"article__unordered-list\">\n<li><span>A plan to increase the state\u2019s sales tax from 6.625% back to 7%. Murphy and state Senate President Nick Scutari, D-Union, contemplated the hike as a way to raise revenue, but Assembly Speaker Craig Coughlin, D-Middlesex, opposed it during budget negotiations. The tax was reduced in 2018 as part of a deal to raise the gas tax.<\/span><\/li>\n<li><span>A $1 tax on every truck delivery to New Jersey\u2019s many warehouses, which Murphy proposed but leaders ultimately nixed.<\/span><\/li>\n<li><span>Raising fees on individual gun permits and gun seller licenses in the state. Murphy wanted to increase fees on firearms purchaser identification cards from $50 to $100. But that all was cut, as well.<\/span><\/li>\n<li><span>A pandemic-era sales tax holiday on back-to-school items and free entry to state parks. Both are ending.<\/span><\/li>\n<\/ul>\n<p>Sarlo, D-Bergen, said while the budget is \u201cnot perfect,\u201d it is \u201ca balance of needs and priorities,\u201d with \u201cone of the largest surpluses that I have ever seen.\u201dHe also lamented the tax hike on the richest corporations but said it was necessary.\u201dWe have to do better with transit,\u201d Sarlo said.Assemblyman Benjie Wimberly, D-Passaic, noted that \u201cwhen you look at issues when it comes to healthcare, food insecurity, domestic violence &#8230; we took care of those who usually can\u2019t take care of themselves.\u201dThe budget once again raises spending to a record level even though the state faces a tight fiscal picture. The plan includes a structural deficit, meaning the state would spend about $2.1 billion more than it draws in from taxes and fees, and officials might have to use money from its<b> <\/b>surplus and debt defeasance fund to help cover some spending.Sen. Declan O\u2019Scanlon, R-Monmouth, the Republican budget chair, called the spending plan \u201cin many ways a runaway freight train.\u201c\u201dIt was an already bloated budget and now it\u2019s worse,\u201d he said.A budget expert from the nonpartisan Office of Legislative Services said in the spring that if the state continues to spend down its surplus at this rate, it would \u201craise concerns about the sustainability of the state\u2019s fiscal path.\u201dEven Coughlin has warned the state needs to be mindful of that.\u201cMeeting some of those challenges and ensuring we\u2019ll able to do it over the next decade, we\u2019re going to have to tighten belts in this budget,\u201d the Assembly speaker told NJ Advance Media earlier this month.<\/p>\n<ul class=\"article__unordered-list\">\n<li><span><b>RELATED: <\/b>What\u2019s next for property taxes in N.J.? Big tax cut\u2019s future remains murky.<\/span><\/li>\n<\/ul>\n<p>The final plan largely mirrors the $55.9 billion budget proposal Murphy unveiled five months ago, although the add-ons make it $728 million larger. It is $2.3 billion \u2014 or 4% \u2014 more than the current $54.3 billion budget Murphy signed last June. Each budget in recent years has carried a record-breaking price tag.It\u2019s up to the Legislature every year to pass a final plan, and Murphy, Scutari, and Coughlin spent recent weeks negotiating what is and isn\u2019t included \u2014 a usually hectic period filled with behind-the-scenes deals.If a budget isn\u2019t in place by July 1, the start of the fiscal year, the state government could shut down \u2014 something that has happened twice in the last 20 years.That isn\u2019t happening this time as Murphy and lawmakers reached an agreement earlier this week.But, like in recent years, negotiations were finalized so close to the deadline that the Legislature has to scramble to pass the budget on time. Last year, Senate and Assembly committees also held a late-night vote on a budget before a bill was released to the public, sparking outcry from good-government advocates.This year was similarly rushed.Assemblywoman Nancy Munoz, R-Union, said Republicans were given only a few hours to digest hundreds of pages.\u201dThe process seems to get worse every year,\u201d she said. \u201d(Former Gov.) Jon Corzine managed to get a budget by June 11. The public deserves to know what\u2019s in this $56 billion budget.\u201cLeaders of advocacy groups who blasted the process over the past two years said this should not become a Trenton tradition.\u201cThe budget touches the lives of every single person in the state, and members of the public should have at least 72 hours to review the budget before it is passed,\u201d said Eric Benson, campaign director of For The Many NJ, a coalition of advocacy groups. \u201cSome lawmakers may think this is all normal and appropriate, but other states do not operate this way and the people of New Jersey deserve better.\u201dRepublicans and business groups have been angry at the inclusion of the new transit tax on the state\u2019s wealthiest companies (A4704). They argued that Murphy agreed to let a previous 2.5% corporate business tax \u2014 on a larger number of companies \u2014 expire at the end of last year and this would simply replace it.Michele Siekerka, president of the New Jersey Business and Industry Association, excoriated lawmakers for supporting the new tax, calling it \u201cterrible policy\u201d and \u201ca blatant disregard for New Jersey\u2019s largest job creators.\u201dSiekerka also noted the estimated $1 billion the tax will raise a year for NJ Transit won\u2019t go directly to the agency for another year, when its deficit hits.\u201cWhy is the money going to sit in surplus for over a year?\u201d she asked. \u201dIt is a sad day the business community.\u201dTom Bracken, president of the New Jersey Chamber of Commerce, said the tax would give New Jersey the highest business taxes in the nation. He argued it \u201ceffectively wipes out much of the progress and momentum our state has enjoyed\u201d when it comes to business and \u201cdoes nothing to solve New Jersey\u2019s long-term structural budget deficits.\u201dSen. Michael Testa, R-Cumberland, said because NJ Transit provides so little in services to South Jersey residents, \u201cthis is taxation without representation.\u201dSupporters of the tax counter that it would affect corporations such as Amazon and Walmart while helping commuters.\u201dThis is a historic win for riders and the state of New Jersey as a whole,\u201d said Alex Ambrose, a policy analyst at left-leaning think tank NJ Policy Perspective. \u201cUntil now, NJ Transit has never had a dedicated source of funding, and the new fee will help get the agency back on track after decades of disinvestment. For riders, more funding means more reliable service, and fewer delays and cancellations, and no major service cuts.\u201d<i>Thank you for relying on us to provide the local news you can trust. Please consider supporting <\/i>NJ.com<i> with a voluntary subscription.<\/i>Susan K. Livio<i> may be reached at <\/i>slivio@njadvancemedia.com<i>. Follow her on Twitter <\/i>@SusanKLivio<i>.<\/i>Jelani Gibson<i> may be reached at <\/i>jgibson@njadvancemedia.com<i>. Follow him on X at<\/i> @jelanigibson1<i>.<\/i>Brent Johnson<i> may be reached at <\/i>bjohnson@njadvancemedia.com<i>. Follow him on X at <\/i>@johnsb01<i>.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Facing a deadline just days away, New Jersey lawmakers Wednesday night introduced and quickly began approving a record new $56.6 billion state budget that\u2019s backed by a new tax hike on large companies, adds some funding for property-tax relief, and includes big spending on public schools and pensions.But Democratic leaders once again faced objections from &#8230; <a title=\"Tax hike speeds ahead in late-night vote on record N.J. budget\" class=\"read-more\" href=\"https:\/\/ch.jfdi.cc\/?p=14995\" aria-label=\"Read more about Tax hike speeds ahead in late-night vote on record N.J. budget\">Read more<\/a><\/p>\n","protected":false},"author":6,"featured_media":14996,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[1521,3038,246,3492,9580,359,1766,9549,4223,2320,186,6600,6916,4844,6765,7768,11354,1221,1664,5663,2134,174,1793,6267,5702,2460,33,2577,1625,7663,5099,1381,11657,898,7725,2852,4117,3818,9835,9099,1734,11436,8285,10752,2515,2544,11844,10647,7343,8903,4382,10144,10920,304,4081,4548,415,985,793,2133,6314,1295,1823,1991,2796,5679,3940,148,2779,8126,4086,2952,1346,12049,2628,1864,9698,6980,3331,4344,7215,4593,5175,5328,5385,722,6971,4059,4833,4843,5838,3840,5402,284,4340,4915,4671,557,8171,8183,11900,1022,1005,11960,737,5612,6106,433,133,4441,1806,12241,5172,3480,1535,7967,282,4347,65,3897,1065,9076,8920,7299,4738,1183,618,2843,4682,1681,169,380,3438,10707,2463,10262,134,1774,8583,6305,9591,9204,11120],"class_list":["post-14995","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-other","tag-1521","tag-agreement","tag-amazon","tag-bill","tag-bills","tag-brent","tag-budget","tag-budget-deficits","tag-budget-proposal","tag-bus","tag-business","tag-business-community","tag-business-groups","tag-business-leaders","tag-business-tax","tag-business-taxes","tag-businesses","tag-campaign","tag-cars","tag-chairman","tag-challenges","tag-christmas","tag-coalition","tag-commerce","tag-committee","tag-community","tag-companies","tag-concerns","tag-construction","tag-corporate-transit-fee","tag-corporations","tag-deadline","tag-deal","tag-debt","tag-deficits","tag-delays","tag-democrats","tag-development","tag-domestic-violence","tag-electric-cars","tag-electric-vehicles","tag-exemption","tag-expensive","tag-fall","tag-february","tag-fees","tag-financial-outlook","tag-firearms","tag-fiscal-year","tag-follow","tag-food","tag-food-insecurity","tag-free","tag-funding","tag-future","tag-gas","tag-government","tag-gun","tag-healthcare","tag-holiday","tag-horse","tag-inclusion","tag-increase","tag-industry","tag-issues","tag-law","tag-leaders","tag-local","tag-local-government","tag-local-news","tag-mayor","tag-media","tag-meeting","tag-momentum","tag-money","tag-negotiations","tag-new-jersey","tag-new-spending","tag-news","tag-nj-transit","tag-objections","tag-office","tag-pandemic","tag-party","tag-pension-fund","tag-pensions","tag-permits","tag-phase-out","tag-policy","tag-president","tag-price","tag-progress","tag-projects","tag-property","tag-property-tax","tag-property-taxes","tag-proposal","tag-public-schools","tag-record","tag-released","tag-remains","tag-republican","tag-republicans","tag-residents","tag-retirement","tag-revenue","tag-sales","tag-school","tag-schools","tag-service","tag-services","tag-shortfall","tag-shut-down","tag-spending","tag-spring","tag-state","tag-state-budget","tag-summer","tag-surplus","tag-sustainability","tag-tax","tag-tax-cut","tag-tax-hike","tag-tax-relief","tag-taxation","tag-taxes","tag-top","tag-tradition","tag-truck","tag-trust","tag-twitter","tag-us","tag-vehicle","tag-vehicle-sales","tag-vehicles","tag-view","tag-violence","tag-vote","tag-walmart","tag-who","tag-wood","tag-workers","tag-x"],"acf":{"keyphrase":"","keywords":"","sourceimg":"","country-category":""},"yoast_head":"<!-- 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