On Tuesday, August 25, 2020, Governor Phil Murphy delivered his revised and shortened FY 2021 Budget to the State Legislature. In these unprecedented times, back in June, the Governor and Legislature passed a three-month budget from July to September 2020. They now need to adopt the remaining nine-month budget for October 2020-June 2021.
The proposed budget focuses on spending cuts, tax increases, and the ongoing response to the pandemic. Some highlights from the proposed budget are:
$250 million in Pandemic-related educational appropriations, such as providing funding to support school re-opening and direct subsidies to child care providers and parents of children under the age of 12 who may not be in a classroom but require supervision while their parents work.
- Tax and fee increases, including a higher tax rate on all income above $1 million, increasing taxes on cigarettes, reinstating a 2.5 percent surtax on corporations, and boosting gun fees.
- The proposed budget reinstates the Homestead Benefit and Senior Freeze property tax programs, two vital property tax relief programs for seniors, the disabled, and low-income residents.
- The state will take the next step in funding pension payment of $4.89 billion, which is unchanged from his previous proposal.
- The proposed budget includes $2.39 billion in federal Coronavirus Aid, Relief, and Economic Security (CARES) Act funding.
- $100 million for Main Street and Small business grants and loans.
- $125 million for landlords and tenants to help keep tenants housed and alleviate the burden on landlords.
We have provided both the Governor’s budget address and the revised budget document below.
FY2021 Revised Budget Proposal