Murphy presents $58.05 billion final budget, pledges record tax relief and full pension payments

Trenton — Gov. Phil Murphy presented his administration—s final budget proposal to a joint session of the New Jersey Legislature, urging lawmakers to approve a $58,050,000,000 spending plan that he said prioritizes record tax relief, full pension payments and investments in housing, transit, health care and workforce development.

Murphy said the budget would deliver another round of property- and renter-tax relief, expand child- and maternal-health programs, and include a surplus that he called necessary to protect the state from federal uncertainty. "With this budget, we will continue making historic progress in meeting our sacred obligations to the people of New Jersey," Murphy said.

The proposal, presented in Murphy's final year in office, matters because it frames spending priorities that the next governor and the Legislature will consider. Murphy emphasized that the package is intended to both provide immediate relief to working families and shrink the state's structural deficit by making the full annual pension payment.

Murphy highlighted several headline items in the address: a $58.05 billion total budget; a stated surplus of more than $6.3 billion; a plan to make the full pension payment and thereby reduce long-term liabilities; record property- and renter-tax relief through the Anchor program and other measures; a new sales-tax exemption for cribs and baby supplies; a proposed expansion of Family Connects NJ (a free nurse home-visitation program launched under first lady Tammy Murphy); and $100 million-plus for Cover All Kids, the state—s children's health coverage program.

The governor said the budget also includes targeted investments to expand apprenticeship and pre-apprenticeship programs, promote affordable housing and down-payment assistance, and modernize the state—s transit fleet and infrastructure. He said the state would continue increased support for NJ Transit capital projects, citing added buses and plans to begin replacing all outdated railcars and buses in the agency—s fleet.

On housing, Murphy said the administration will pair zoning and permitting reforms with down-payment assistance and trust-fund investments to expand affordable housing. He noted continued funding for programs that help seniors remain in their homes, referencing "Stay NJ," described in the speech as a large program to provide relief to seniors.

On public health and reproductive services, Murphy said the budget builds on prior increases in funding, proposing what he called the largest investment in protecting reproductive rights in state history and establishing a new OBGYN incentive program to recruit providers. He pledged continued investments in addiction treatment using opioid-settlement funds already received by the state; Murphy said New Jersey has received more than $1 billion from opioid settlements and that the administration invested more than $120 million of those funds last year into substance-use treatment.

Murphy also described climate and clean-energy investments funded through the Regional Greenhouse Gas Initiative (RGGI). He said the state would invest $135 million in February RGGI proceeds to help businesses and local governments expand electric-vehicle fleets and cited continued progress on solar deployment. On economic development, Murphy highlighted increased state support for innovation centers, film and television production growth, and the adult-use cannabis industry—s tax revenue, which he said exceeded $1 billion in sales last year.

At several points in the address Murphy introduced individuals who illustrate the budget—s goals: Abigail Perez (a single parent who received direct child tax credit payments), Jim Sohn (a veteran who moved into affordable housing), Tina Pastoreza (an apprentice who joined the carpenters union), Andrew Bell (superintendent of Woodbury City Public Schools), and Tahir Johnson (owner of Simply Pure, a cannabis business). Murphy quoted Bell on the benefits of phone-free schools: "Teachers are ecstatic to have control of the classroom back." The governor also said the budget would provide several million dollars to pilot phone-free K–12 schools in interested districts.

The speech did not include a formal vote on the budget plan; Murphy—s address is the administration—s proposal, and the Legislature must consider, amend and pass appropriation bills before the plan becomes law. Before the speech, the Assembly adopted a concurrent resolution calling for the joint session to receive the budget message; that resolution was moved by Majority Leader Lewis Greenwald and seconded by Speaker pro tem Quijano.

Following the address, the joint session was adjourned by motion of Assemblyman Lewis Greenwald and seconded by Senate Majority Leader Theresa Ruiz.

What's next: the Legislature will receive the administration's proposal and then proceed to committee hearings, bill drafting and floor votes on any appropriation and implementing legislation. The speech laid out the administration's final priorities, but the fiscal package still requires legislative action to take effect.