New Jersey

New Jersey

Budget Cycle
Governor Submits Budget
February (4th Tuesday)
Fiscal Year Begins
July 1 
Governor Signs Budget 
By June 30

Budget Links 

FY2025 (proposed)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)
FY2020 (enacted)

Proposed Budget - Fiscal Year 2025

On February 27, New Jersey Governor Phil Murphy presented his fiscal 2025 budget. The proposal calls for total budgeted expenditures in fiscal 2025 of $55.9 billion, a 0.9 percent increase compared to adjusted appropriations for fiscal 2024. Of the total, 42.2 percent will be distributed as State Aid to school districts, community colleges, municipalities and cities and 31.8 percent will be used for direct services (known as “Grants-In-Aid”) for property tax relief, social services, and higher education. General Fund and Property Tax Relief Fund appropriations make up most of the budget, at a combined $55.2 billion (a 0.7 percent increase over fiscal 2024 adjusted appropriations), with General Fund spending of $34.7 billion and Property Tax Relief Fund spending of $20.5 billion. Additional appropriations come out of casino-related funds totaling roughly $674 million and the Gubernatorial Elections Fund at $30 million. The budget is based on estimated total state revenues of $54.1 billion, a 3.6 percent increase compared to fiscal 2024 revised estimates. The fiscal 2025 budget projects a surplus or ending balance (undesignated) of $6.1 billion. In addition to the spending proposed in the governor’s budget, the state estimates it will spend $33.3 billion from funds not budgeted, including $22.4 billion in federal revenues, $3.9 billion in transportation funds, and the remaining from dedicated and revolving funds. Total state spending including budgeted and non-budgeted expenditures in fiscal 2025 is estimated at $89.3 billion, a 0.4 percent decrease from estimated fiscal 2024 expenditures.

Proposed Budget Highlights 

The governor’s budget for fiscal 2025 funds key priorities with the overarching goal of “Making New Jersey the Best Place to Raise a Family.” The budget recommends investments to expand affordability, fully fund the state’s K-12 funding formula, continue fiscal responsibility, create economic opportunity, and ensure every state resident has a fair shot. Key initiatives in these areas are described below.

Increasing Affordability

  • $3.5 billion in total direct property tax relief, including $2.3 billion through the ANCHOR Property Tax Relief Program serving nearly 2 million homeowners and renters.
  • Expand eligibility for the Senior Freeze property tax relief program. 
  • $82.5 million (a $12 million increase from 2024) to continue expanded eligibility for prescription drug assistance program for senior and disabled populations.
  • $3.5 million to administer the RetireReady NJ savings program, a new retirement option for private sector workers launching in 2024.
  • More than $50 million in certain housing investments, including $10 million to incentivize the creation of accessory dwelling units, $15 million to create pathways to homeownership for rental assistance recipients, and $32 million for Down Payment Assistance.
  • Maintain recent expansions of Earned Income Tax Credit, Child and Dependent Care Tax Credit, and Child Tax Credit.

Investing in Pre-K and K-12 Education 

  • $908 million increase in K-12 formula aid, completing the seven-year phase-in of the School Funding Reform Act and delivering on its promise to be the first administration in state history to fully fund the state’s school funding formula.
  • Additional $124 million for Preschool Education Aid, including $20 million to expand into new districts.
  • $10 million for student-teacher stipends and $5 million for the Teacher Loan Redemption Program. 
  • $2.5 million for a literacy screening grant program.

Promoting Fiscal Responsibility

  • Fourth consecutive full Actuarially Determined Contribution to the state’s pension, with a total payment of more than $7.1 billion.
  • Removes more than $1 billion in spending from the fiscal 2024 budget plan as well as starts to phase out the electric vehicle (EV) sales tax exemption while investing in targeted EV incentives.
  • Use of the Debt Defeasance and Prevention Fund to avoid new borrowing costs, including $120 million to finish the State Police Training Center; $21 million to convert veterans’ home rooms to single occupancy; and $70 million for capital projects at state parks.
  • Proposes the Corporate Transit Fee as a new dedicated funding source for NJ TRANSIT, paid for by corporations with net incomes above $10 million, which would generate an estimated $859 million in revenue in fiscal 2026, while also contributing a General Fund subsidy of $145 million to NJ TRANSIT in fiscal 2025. 

Creating Economic Opportunity & Supporting Local Communities

  • A series of initiatives to advance the Artificial Intelligence (AI) Moonshot and enhance the AI Hub being created at Princeton University.
  • Continues support for Main Street Recovery Fund, Manufacturing Initiatives, and Strategic Innovation Centers.
  • $40 million in matching funds for federal electric grid modernization work.
  • $5 million to launch a Nursing Workforce Initiative.
  • $2 million increase for the Behavioral Healthcare Loan Redemption Program.
  • Additional $10 million from the State Fiscal Recovery Fund for the Firefighter Grant program.

Supporting All New Jerseyans

  • More than $30 million for a two-year initiative to end veteran homelessness through a series of interventions.
  • Increased rates for emergency housing placements in hotels or motels.
  • Additional $9.5 million to nearly double last year’s investment in the ARRIVE Together program, which brings police and mental health professionals together to respond to crises in municipalities.
  • $20 million to expand universal home visitation program for new mothers.
  • Continued investments in family planning services and reproductive health programs.
  • Additional $30 million for free school meals.
    Participation in the Summer EBT program.
  • $91.8 million in aid to food assistance programs.