Proposed Budget Highlights
The governor’s budget focuses on affordability, fiscal responsibility, and the opportunity to build the “Next New Jersey” by investing in key priorities, delivering more property tax relief, and not imposing any new taxes or fees. The governor’s budget also outlines a plan to allocate remaining funds from the American Rescue Plan Act (ARPA) State Fiscal Recovery Fund towards “transformative, one-time investments” to maintain pandemic-era services, foster academic recovery, improve public safety, support local governments, create more affordable housing, strengthen clean and drinking water systems, and modernize state services.
Highlights of the governor’s proposed budget include:
Increasing Affordability
- Doubles the Child Tax Credit enacted last year to provide up to $1,000 per child for families with young children
- Continues ANCHOR property tax relief program by providing over $2 billion in direct property tax relief
- Expands support for seniors, including increasing eligibility for Senior Freeze property tax relief and prescription drug and hearing aid programs
- Provides additional support for state hospitals and creates a $10 million pilot program to eliminate personal medical debt
- $40 million to continue improving unemployment insurance system, digitizing motor vehicle commission services, and expanding the ANCHOR call center
Investing in Affordable Education and Children’s Health
- $109 million increase for preschool education aid to move towards universal pre-K
- $832 million increase in direct K-12 aid for public schools, which helps offset local property taxes
- $20 million in targeted investments in public school staff, including $10 million for student teacher stipends
- $30 million in federal funds for high-impact tutoring and other programs to address learning loss
- $15 million to expand Tuition Aid Grants; additional funding to increase eligibility for the Garden State Guarantee and Community College Opportunity Grants; and $5 million more to expand the “Some College, No Degree” program
- $43 million to create a series of regional hubs to deliver youth mental health services, known as the NJ Statewide Student Support Services (NJ4S) network
- $40 million to increase payments to providers of various Department of Children and Families programs
- $14 million in additional funds for the Cover All Kids initiative to ensure access to healthcare for all children regardless of immigration status
Promoting Fiscal Responsibility
- Brings the state’s total surplus (ending balance) to over $10 billion (almost 19 percent of the overall budget)
- $7.1 billion for full actuarially determined contribution (ADC) to pension plan for third year in a row
- $2.35 billion fiscal 2023 deposit to reduce and avoid state debt
- $200 million in federal funds combined with long-term savings reforms to help address local governments’ rising health benefit costs
- Reduces NJ Transit’s Capital to Operating Transfer to the lowest level in 21 years and maintains fares at current levels for sixth consecutive year
Expanding Opportunity and Promoting Economic Growth
- Allows temporary 2.5 percent Corporation Business Tax surcharge to expire on schedule to boost the state’s business climate
- Allocates federal funds to create an Urban Investment Fund to revitalize communities
- $100 million in federal ARPA funding to create a Boardwalk Fund to help repair and renovate seaside attractions
- Over $50 million for green economy programs, including a $40 million Green Fund to leverage private capital and federal funds
- $15 million in additional down payment assistance to support first-generation homebuyers
- $100 million in federal ARPA funds to preserve affordable housing and develop new units
- $50 million in continued support for Main Street Recovery Program for small businesses
- $5 million increase in Workforce Development Partnership Fund spending on job training and apprenticeship programs