TRENTON — Calling himself a “pro-growth progressive,” Gov. Phil Murphy on Tuesday delivered his second annual budget address, laying out a $38.6 billion “blueprint for the middle class” that calls on raising taxes on the state’s millionaires.
“Our
license plates say, ‘New Jersey, the Garden State.’ But even more than
that, New Jersey is the middle-class state. We are all in this together.
And, coming together is how we succeed,” Murphy said.
Murphy is looking to add to his list of first-term
wins — the eventual $15 minimum wage, expanded paid family leave and
earned paid sick days for private-sector workers — with a new 10.75
percent tax on incomes more than $1 million.
Long a goal of progressives, the millionaire’s tax was shot down by former Republican Gov. Chris Christie and has been resisted from the leaders of Murphy’s own party.
The
millionaire’s tax would generate an estimated $447 million. Murphy’s
spending plan anticipates a 6.9 percent growth in income tax revenues,
to $16.6 billion.
“Let’s be absolutely clear – this is not a tax that will be paid by anyone in the middle class. Period. Full stop," Murphy said.
He also renewed is support for recreational
marijuana legalization but said he would only sign a bill that expunges
the criminal records for past marijuana offenses. While not yet law, his
proposed budget already anticipates $60 million in weed tax revenues,
$21 million of which would be eaten up by administrative costs
associated with lighting up the program.
His
proposed budget also includes more than $1.1 billion in savings, most of
which comes from $800 million in negotiated cost savings for state
employee health benefits.
The budget also
anticipates a surplus for the second year in a row — of more than $1
billion, more than the $745 million that had been projected last year.
His
budget would provide property-tax payers with $283 million in direct
tax relief and $400 million in savings through municipal and school
budgets.
Among the spending items would be another $206
million in education funds after having boosted school aid by $350
million last year. This would include $68 million to maintain and expand
pre-kindergarten.
Murphy also wants to expand
tuition-free degrees to all 19 community colleges. Last year, the state
began funding tuition-free programs for low-income students at 13
schools. His budget would provide $20 million in new funding for all
public colleges and universities as well as $5 million more for Tuition
Aid Grants and $2.25 million for the Educational Opportunity Fund, which
are now available to student residents who lack the legal status to be
in the country.
Murphy also touted providing
public funding for Planned Parenthood, a nonprofit healthcare provider
often the target of conservatives and Republicans opposed to funding
abortion providers.
His proposal would also fine companies who employ
more than 50 people who rely on Medicaid for their health insurance.
These companies would have to pay $150 per worker each year. This would
raise an estimated $30 million.
“They should share in the burden of paying for their employee’s care, rather than leaving it to the rest of us,” Murphy said.
Also in the proposal:
— A $3.8 billion payment to the state pension system.
— $100 million for opioid addiction services.
— No fare hikes for NJ Transit, which would get
$407 million in state spending, a $100 million increase. The increase
includes $75 million in funds that had been spent elsewhere.
— Increase gun licensing fees, which Murphy says remains at $2 — less than most dog licenses.
1 comment:
It's bad enough that NJ Taxpayers have to pay for the education of illegal aliens from nursery school through high school. Now, we're giving them 2.25 million for a college education and a free lawyer's fund. Why are all these illegal criminals being rewarded for breaking our country's laws while our citizens struggle with everyday expenses???
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