On June 24, the Assembly and the Senate passed the $46.5 billion FY2022 state budget bill. The budget will now go to the Governor’s desk for action. The appropriations bills A-5870/S-2022 (Pintor Marin / Burzichelli/Sarlo/Cunningham), passed in the Assembly by a vote of 49-26 and a vote of 25-15 in the Senate.
The CCSNJ was pleased that the FY2022 state budget maintains no new taxes, tax increases or fees, as the Governor proposed in his original budget proposal. However, we were disappointed that it did not include funds to replenish the state unemployment trust fund.
The budget also includes includes a $500 tax rebate, and updating the Homestead Benefit base year to 2017. Other property tax relief measures in the budget are a Child and Dependent Care Credit expansion that it is available for families making up to $150,000 and an extension the Veterans Property Tax Deduction to peacetime veterans.
To address long term fiscal issues, the budget included a Debt Defeasance Fund which contains $2.5 billion to immediately pay off some of the state’s oldest debt and an additional $505 million to the Governor’s originally proposed $6.4 billion pension payment.
There is $135 million of COVID-19 relief for businesses, in addition to the $235 million proposed in the Governor’s original budget. Also included is $100 million to expand the childcare credit so residents can return to work.
The Assembly also passed A-5939 (Pintor Marin/Ruiz), which revises the "New Jersey Economic Recovery Act of 2020" to react to changes in the workplace due to the pandemic. Among other things, the bill modifies the requirements for how often workers must be to remain physically present in the office from 80 percent of their time to 60 percent.
The bill passed in the Assembly by a vote of 65-9-1. The Senate will hear the bill on Wednesday June, 30.
Should you have any questions, please contact Hilary Chebra, Manager of Government Affairs at hchebra@chambersnj.com.
