GOP Expresses Concerns Over Murphy’s Proposed Budget

By Jim Pytell, Managing Editor On Feb 28, 2024

After Gov. Phil Murphy unveiled his $56 billion budget plan yesterday, top Republicans and business stakeholders expressed concern, particularly with the proposal’s transit fee, which will act as a new and permanent 2.5% surtax on New Jersey’s largest job providers.

“The governor has talked for months and months about letting the Corporate Business Tax (CBT) surcharge expire, only to create a new, higher tax [in its place],” said Assembly Minority Leader John DiMaio, who noted that this new transit fee could also be permanent, as no indication of an expiration was given.

The 2.5% fee is the same rate as the expired surtax, but instead applies to the first dollar for businesses with New Jersey allocated net income of more than $10,000,000, whereas the expired surtax excluded the first $1,000,000 of income from tax.

“That Governor Murphy would re-commit to a new business tax at a time of a multi-billion-dollar surplus to fund NJ TRANSIT when there is no correlation between those impacted corps and public transportation – which he acknowledges himself – is nothing short of a punitive action against our largest job providers. It is a punishment they do not deserve,” said NJBIA President and CEO Michele Siekerka in a statement.

“We note that the added $10 million revenue threshold of the new CBT tax changes almost nothing about the negative impact on New Jersey’s business competitiveness in attracting corporate job creation and capital investment,” Siekerka continued. “It is an unfair and undeniable negative that delivers another serious blow to our business reputation.”

Separately, state Republicans criticized the Murphy administration for failing to properly take advantage of the state’s surplus by creating sustainable reforms.

“Mark my words, history is going to judge this administration as one of tragically missed opportunities,” said Sen. Declan O’Scanlon (R-Monmouth). “We were flush with cash after the pandemic. We could easily have reworked our school funding formula, done health benefits reform, and pension reform, but none of that has happened. As soon as the pandemic money works its way through the system, we will face a budget hole bigger than the one that was looming when the governor came into office.”

Murphy’s budget plan would fully fund the state’s school funding formula for the first time ever, but according to GOP lawmakers, while overall school funding is increased, more than 140 school districts will lose funding as part of the current formula.

“Districts from Somers Point to Toms River and New Milford to Evesham have had hundreds of millions of dollars in education aid cut, requiring administrators to eliminate music, art and sports programs from their schools. That is not fair,” said Senator Jon Bramnick (R-Union).

Sen. Tony Bucco (R-Morris) said that despite Republican’s efforts to make suggestions and policy proposals during the budget process over the years, they have repeatedly been ignored.

“Government is not supposed to operate on one-party rule and one-party making the decisions,” he said, while calling for more transparency during the budget process. “We are looking for a seat at the table.”

“A balanced, two-party approach would actually make our state stronger and fairer,” Bramnick said. “History has shown us, over the next few months, Democrats will add hundreds of millions of dollars for pet projects in their communities. These budget add-ons do not make New Jersey stronger, only more expensive.”

“We have plans to make things better. We will look at the budget and put this administration’s feet to the fire. We have to face the reality of how this is affecting the working people of New Jersey,” said Assemblywoman Nancy Munoz (R-Union).

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