2023 NJ State Budget
- FY 2023 Budget Address by Gov. Phil Murphy
- The State of New Jersey Budget in Brief: Summary of Budget Recommendations Fiscal Year 2023 (PDF)
- NJ Fiscal Year 2023 Budget at a Glance (DPF)
- NJLM President William PIkolycky, Woodbine Mayor, Statement Regarding Governor Murphy's Fiscal Yera 2023 Budget Address
Governor Phil Murphy delivered his fifth annual budget address on Tuesday, outlining a spending proposal for Fiscal Year 2023 (FY2023) that builds on the historic progress made over the last four years with new investments that will make New Jersey stronger, fairer, and more affordable by delivering substantially more property tax relief to many more families, providing the highest level of school funding in history, making a second consecutive full pension payment for the first time in more than a quarter-century, and supporting significant investments in the economy.
“The budget I propose today continues the work of the past four years - restoring fiscal responsibility, promoting economic growth, and making New Jersey stronger, fairer, and more affordable for our families and seniors,” said Governor Murphy. “I am proud that, across our first four years working together, we cut taxes for our middle-class and working families and seniors 14 times.”
“With a focus on fostering an innovation-driven economy that grows new industries, restores our environment, and drives investment into our communities, this budget will support the careers of tomorrow,” continued Governor Murphy. “Last week’s credit upgrade is clear proof that social responsibility and fiscal responsibility are not mutually exclusive. It is clear proof that when you invest in people, invest in growing the middle class and growing the economy, and invest in our future, it all pays off. This is what happens when you use the budget not just to muddle through today, but to build a State of Opportunity for tomorrow.”
“The Governor’s proposed budget makes good use of increased revenues by striking a strong balance between investing in the economy, delivering substantial tax relief, and supporting fiscal responsibility by paying down debt and shoring up our reserves,” said State Treasurer Elizabeth Maher Muoio. “Our record pension contributions, which are reducing our unfunded liability, have been made possible by the Governor’s resolve. While others have made a commitment to fully fund it, he is the first to keep it and maintain it.”
The Governor’s first proposed budget of his second term builds on the significant progress made over the last four years, which just last week led to New Jersey’s first credit rating upgrade in nearly 20 years, helping to reduce future costs to the State.
The $48.9 billion spending plan includes a record proposed surplus of $4.2 billion, nearly twice the size of the surplus proposed in last year’s budget while redirecting more than 70 percent of the total budget back out in the form of grants-in-aid for property tax relief, social services, and higher education, as well as State aid to schools, community colleges, municipalities, and counties.
The Governor continues to deliver on his promise to public employees by proposing a $6.82 billion pension payment, including contributions from the State lottery, which marks the second consecutive year that the State will meet 100 percent of the Actuarially Determined Contribution (ADC). With the proposed FY2023 payment, the Murphy Administration will be responsible for nearly 68% of State pension contributions since FY1995.
Continuing his commitment to fiscal responsibility, the Governor is also proposing to make an additional $1.3 billion deposit in the Debt Defeasance and Prevention Fund for FY2022, in addition to the $3.7 billion that was appropriated last June, bringing the total set aside for reducing the State’s debt load to $5 billion. To date, the State has retired more than $3 billion in debt principal and interest, saving taxpayers over $600 million, and reducing the State’s overall debt load since the Governor took office. The State also expects to save roughly $2.2 billion by using debt prevention funds to support capital construction on a pay-as-you-go basis, rather than borrowing at current interest rates to fund capital construction.
The Governor’s ambitious budget proposal centers on making New Jersey more affordable, creating economic opportunity, protecting health and safety, and planning for New Jersey’s future.
Making New Jersey More Affordable
With a focus on affordability, the proposed FY2023 budget expands upon the 14 tax cuts the Murphy Administration has delivered for working families by dramatically increasing direct property tax relief, continuing the Governor’s historic funding of pre-K and K-12 education, and bringing down the costs of higher education and housing.
As unveiled last week, the Governor is proposing to replace the Homestead Benefit program with the creation of a new nearly $900 million program known as ANCHOR – the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) Property Tax Relief Program. ANCHOR will benefit more than 1.15 million homeowners – double the amount under the Homestead Benefit--and more than 600,000 renters, all of whom are currently excluded from the Homestead Benefit.
Under the Governor’s proposal, the benefit amount would increase over the next three years and is based on income level--targeting relief to those who need it most. Homeowners earning up to $250,000 a year will receive an average benefit of nearly $700 in FY2023, growing to $1,150 by FY2025. Renters earning up to $100,000 will receive a yearly benefit. up to $250.
Furthering his commitment to affordability, the Governor’s proposed budget contains no new taxes or fees and proposes a year of “fee holidays” for drivers renewing their licenses, certain health care professionals applying for or renewing their licenses, couples getting married, and residents visiting State Parks.
The budget proposal maintains the Governor’s commitment to fully funding our school funding formula with an additional $650 million in K-12 formula aid. Since 2018, the State has increased K-12 formula aid by almost $1.8 billion, far outpacing investments by any other administration. The budget also advances the Governor’s goal of universal pre-K with an additional $68 million for Preschool Education Aid, $40 million of which will go towards new districts, creating almost 3,000 more seats for three- and four-year-olds. Since 2018, the Murphy Administration has already increased pre-K spending by over $240 million and created nearly 9,000 new seats.
The proposed budget also continues building on the Governor’s commitment to improve higher education access and affordability. Due to a $94 million increase in direct aid to higher education institutions through the Outcomes-Based Allocation since FY2021, tens of thousands of eligible students will receive free tuition this fall at public four-year colleges through the Garden State Guarantee. The Governor is also proposing increased support for the Educational Opportunity Fund, a higher income threshold for Community College Opportunity Grants to match the Garden State Guarantee’s limits, and the creation of the Some College, No Degree program to encourage college completion.
The Governor also plans to propose the use of over $300 million in American Rescue Plan (ARP) funds to create the Affordable Housing Production Fund, which will help complete all viable 100 percent affordable housing projects identified in Mount Laurel settlements and create an estimated 3,300 new units. The Governor is also proposing a $5 million increase for the successful Down Payment Assistance Program to help more first-time homebuyers purchase houses in New Jersey. These programs build on the over $1 billion in short-term relief that the Administration will start distributing this year through the Eviction Prevention Program and Homeowner Assistance Fund.
Creating Economic Opportunity
The proposed budget also includes comprehensive investments to continue spurring economic growth and support New Jersey’s ongoing recovery from the pandemic by creating new opportunities for job seekers, small businesses, and entrepreneurs, making critical investments in infrastructure, and providing access to capital for diverse businesses, including: