On February 28, the CCSNJ attended Governor Murphy’s FY2024 State Budget Address. The Governor proposed a $53.1 billion budget, the largest in state history, which includes a proposed surplus of $10 billion.

The CCSNJ is pleased that the proposed budget includes no new taxes or fees and that the Governor will honor his agreement to allow the 2.5 percent Corporate Business Tax (CBT) surcharge to expire. This surcharge, established in 2018, was in addition to the CBT already levied on business, which is one of the highest in the nation.

Additionally, the proposed budget includes a $7.1 billion pension contribution, making this the third consecutive year that the state will make a full pension payment. There is also a proposed $2.35 billion deposit in the Debt Defeasance and Prevention Fund. This fund, established in June of 2021, was created to improve the state’s long-term fiscal health, and reduce outstanding debt.

Although small business assistance was not mentioned during yesterday’s speech, the proposed budget includes $50 million for the Main Street Recovery Program. This is the same amount allocated last year in the FY2023 state budget, which the CCSNJ argued – and will continue to argue - is not enough funding to support the state’s struggling small business community. There was also a proposed $20 million added to the Manufacturing Voucher Program, which assists New Jersey manufacturers with accessing needed equipment upgrades and improvements.

Governor Murphy also announced the creation of an Urban Investment Fund to assist in revitalizing downtowns impacted by the pandemic. Once more details become available, we will provide that information to the CCSNJ membership. A $100 million Boardwalk Fund was also announced, which will help with repairs and other needed revitalization measures of the shore’s boardwalks.

A controversial new priority of the Administration, modernizing New Jersey’s liquor license laws, was also mentioned during the speech. The CCSNJ looks forward to learning more about the Governor’s proposal and discussing it with stakeholders as further details are unveiled.

Further, Governor Murphy’s proposed budget includes:

• $2 billion to continue the ANCHOR Program, which is a property tax relief program that excludes businesses.
• Doubling the Child Tax Credit to $1,000 per child.
• Expanding the Senior Freeze property tax relief program to those with incomes up to $150,000.
• Allocating funding to digitize more services at the New Jersey Motor Vehicle Commission.

The CCSNJ remains gravely concerned about the total spend of the FY2024 state budget. As proposed, a $53.1 billion budget is the largest budget in state history - a 50 percent increase since 2018. The CCSNJ’s fear is that to maintain this level of year-over-year growth in spending, New Jersey will inevitably have to raise taxes on its already overburdened residents and businesses – a fact that was recently supported by a NJ Spotlight report stating that property taxes increased by 2 percent since last year.

The CCSNJ strongly encourages the Administration to consider new, reliable, long-term revenue sources in the context of the final FY2024 state budget that can be depended upon in the future to assure the state does not overspend, leaving the businesses and taxpayers unfairly responsible to make up the difference.

As always, the CCSNJ looks forward to being actively engaged in the budget process as the Legislature works to approve a budget by June 30, 2023. Should you have any issues or requests to be considered in the context of the FY2024 state budget, please contact Hilary Chebra at hchebra@chambersnj.com.