“Now is the time for us to look at policies that can correct our decades-old – or in some cases, centuries-old – inequalities,” the governor said Tuesday in a budget speech, which he said. virtually uttered.
A key pillar of the budget is a proposal to fully fund the state’s public sector pension obligations for the first time since 1996.
The state has not set aside the full amount of its pension obligation for 25 years, which has resulted in the accumulation of $ 4 billion in additional debt over time, Ms. Muoio said. Under a deal negotiated with the legislature, Murphy was on track to fully fund the state’s share by fiscal 2023. But the spending plan released on Tuesday sets aside $ 6.4 billion to the pension system, accelerating the full funding of one year.
“New Jersey is done fixing the problems on the road,” the governor said. “We solve them.”
Under the plan, the state’s surplus, which proved to be a vital resource during the first wave of the pandemic, would not increase, officials said, but would remain at about the same level. until the end of 2020.
Mr. Murphy’s spending plan, which must be approved by the Democratic-controlled Legislative Assembly by the end of June, also includes $ 20 million to create a “Cover All Insurance” program. children âfor the 88,000 children without state health care. .
When lawmakers approved a 10.75% tax rate on all income over $ 1 million in September, they also established a rebate of up to $ 500 for taxpayers earning less than $ 75,000. $ per year. The proposed budget sets aside $ 319 million to fund the first year of remittances, which would be issued in July – three months before the state’s governor and lawmakers are re-elected.
The proposed budget is 8.8% higher than for the current year.
State Senator Declan O’Scanlon, a Republican who represents much of the North Jersey shore, said the spending increases were unsustainable.