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 

FY2024 (proposed)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)
FY2020 (enacted)
FY2019 (enacted)

Proposed Budget - Fiscal Year 2024

On February 28, New Jersey Governor Phil Murphy presented a fiscal 2024 budget. The proposal calls for total state appropriations in fiscal 2024 of $53.1 billion, a 4.7 percent increase compared to original appropriations from the fiscal 2023 Appropriations Act. Budgeted expenditures include $29.7 billion from the general fund, $22.7 billion from the Property Tax Relief Fund, and roughly $600 million from casino-related funds. Of the total, 42 percent will be distributed as State Aid to school districts, community colleges, municipalities and cities and 32 percent will be used for direct services (known as “Grants-In-Aid”) for property tax relief, social services, and higher education. The budget also recommends adjustments to the fiscal 2023 budget including supplemental appropriations of $1.46 billion as well as a deposit into the Debt Defeasance and Prevention Fund of $2.35 billion. Fiscal 2024 proposed expenditures are 2.6 percent below total adjusted appropriations for fiscal 2023. The budget is based on total state revenues of $53.8 billion, reflecting a 0.4 percent decline compared to the revised revenue estimate for fiscal 2023. The fiscal 2024 budget projects an ending balance of $10.0 billion, including $1.6 billion in the Surplus Revenue Fund (rainy day fund). In addition to the spending proposed in the governor’s budget, the state estimates it will spend $32.0 billion from funds not budgeted, including $21.8 billion in federal funds, $3.5 billion in transportation funds, and the remaining from dedicated and revolving funds, with total state spending in fiscal 2024 estimated at $85.1 billion.

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