the staff of the Ridgewood blog
Trenton NJ, the Murphy administration’s spending habits are coming under fire as concerns grow over potential federal Medicaid cuts. During a New Jersey Assembly Budget Committee hearing, State Treasurer Elizabeth Muoio warned that the federal government could slash Medicaid funding by $10 billion, potentially affecting 700,000 New Jersey residents.
However, Assemblyman Al Barlas (R-Essex) argues that the real issue isn’t just the federal cuts—it’s the state’s reckless spending.
Barlas: Surplus Mismanagement Leaves Medicaid Recipients at Risk
New Jersey entered the 2024 fiscal year with a record $10 billion surplus, yet state spending has quickly outpaced revenue. Now, Gov. Phil Murphy’s proposed budget requires tapping into the remaining $6.3 billion surplus, raising concerns that New Jersey’s reserves could be completely drained by 2029.
“The administration’s out-of-control spending has put us all at risk. The budget surplus should be treated like our state’s insurance plan, not a free-for-all fund,” Barlas stated.
Pork Spending & Budget Deficits
Critics point to excessive pork spending—last-minute budget add-ons primarily benefiting Democratic districts—as a key factor in the state’s financial troubles. Under the Murphy administration, pork spending has totaled $3.6 billion, with over $2 billion added in just the last two years.
Barlas emphasized that this fiscal mismanagement directly impacts New Jersey’s most vulnerable residents, including Medicaid recipients who may face uncertainty if federal cuts are implemented.
What’s Next for New Jersey’s Budget?
With state reserves dwindling and potential federal cuts looming, officials stress the need for responsible budget planning. Muoio acknowledged the urgency, stating:
“Now more than ever, every dollar in our state budget must be spent wisely and efficiently.”
Yet, Barlas argues that Murphy’s administration has already failed in that mission, putting New Jerseyans at financial risk.
Stay Updated on NJ Budget News
As the debate over state spending intensifies, residents and policymakers alike are watching closely. Will New Jersey course-correct before the surplus runs dry?
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