Governor Murphy Goes on a Massive Spending Spree While He Campaigns for Reelection

the staff of the Ridgewood blog

Trenton NJ, Governor Phil Murphy’s new state election year budget proposes to boost state spending by 11% in the fiscal year starting in July, in an election-year budget that avoids tax or fee increases due to stronger-than-expected revenues and a surplus helped by nearly $4.3 billion from emergency borrowing.

The proposed budget of $44.8 billion , compares with $40.3 billion in the budgets adopted for the current 12-month cycle, which has since been adjusted to $41.2 billion due to $872 million in supplemental spending now being proposed.

The one bright spot is that the budget includes nearly $6.4 billion going into the public workers’ pension funds, which is the first time since 1996 that the state would make the full payment recommended by actuaries. Had the state made a full payment each year, the coming year’s contribution would have been less than $800 million. However the borrowing can be viewed as moving the pension liability from the state to the taxpayers .

Senator Steven Oroho (R-24), the Senate Republican Budget Officer, said the State budget plan for FY 2022 outlined by Governor Phil Murphy today is focused solely on boosting the governor’s reelection campaign. “His proposed budget would spend down billions in surplus, which won’t be sustainable beyond a single year. If Governor Murphy is reelected, it’s an absolute certainty he’ll call for tax increases next year to keep his spending spree going.”

Senator Declan O’Scanlon (R-13), a member of the Senate Budget & Appropriations Committee, issued the following statement on Governor Phil Murphy’s FY 2022 budget proposal: “The Governor’s budget is increasing spending by 11% since last year and by about 30% since he took office three years ago. It’s fueled by one time windfalls of federal revenue, massive one-time borrowings, and spending down surplus. Much of the spending is for government growth including salary and benefit increases, new programs, and expanded programs.”

Presumptive Republican nominee for Governor, Jack Ciattarelli today issued the following statement in response to Governor Murphy’s annual Budget Address: “The Governor says he wants to ‘get our economy moving forward.’ One out of three new Jersey businesses have closed forever. Our schools aren’t open, preventing parents from getting back to work. You can’t get vaccinated, unless you’re an inmate or a smoker. Unemployment benefits are painfully delayed for months. And yet, Governor Murphy casts himself as the state’s savior today. It’s an insult. An insult to working families fighting to keep their business afloat. An insult to the parents watching their children suffer through another lost school year. An insult to the millions of New Jerseyans struggling to pay their bills and hold onto their jobs. Governor Murphy isn’t going to save New Jersey. What will save New Jersey is a new Governor come January 2022.”

NJBIA President and CEO Michele Siekerka issued the following statement regarding Gov. Phil Murphy’s proposed FY 2022 budget today, “we do continue to have strong concerns about the sustainability of New Jersey’s overall spending. If the proposed $44.8 billion number holds for FY22, it would mean New Jersey’s signed budgets will have increased more than 29% over the last four fiscal years.”

Assemblyman Jay Webber took Gov. Phil Murphy to task for failing to prioritize property tax relief. “Budgets are about priorities, and any state budget not making property tax relief a top priority is just out of touch with the burdens and needs of New Jersey’s residents,” said Webber (R-Morris). “The cold cruel fact is that as New Jersey enters the fourth year of Governor Murphy’s reign, average property taxes have soared past the $9,100 mark. The net increase in property taxes is even higher since the governor slashed homestead property tax relief for seniors, disabled, and middle-income families. Four years into his governorship, Phil Murphy should at long last start putting property taxpayers first.”

Garden State Initiative’s president, Regina M. Egea, issued the following statement on Governor Phil Murphy’s Budget Address: “Incorporating billions in borrowing and federally funded one-time infusions of cash as the basis for a budget bodes poorly for all New Jerseyans in the very near future. As has been reported elsewhere that the state is suddenly flush with cash, New Jersey residents should ask themselves: “When was the last time you remember taxes actually going down?”
Unless there’s more borrowing or further federal bailouts, get ready New Jersey, you just got stuck with the bill.  Make no mistake, your taxes just went up.”