At today’s COVID-19 press briefing, Gov. Phil Murphy announced that he signed a three-month spending plan previously passed by the Legislature that includes cuts and spending deferrals to help the state meet basic obligations through its extended fiscal year which ends on September 30.
The spending plan consists of $7.632 billion and cuts roughly $1.2 billion in previously authorized spending. It does not include nearly $850 million in new spending proposed in the governor’s February budget address.
The supplemental appropriations bill includes a 5% “across-the-board” reduction in funding for non-salary operating costs, a 10% reduction in discretionary grants, and protects services essential to COVID-19 recovery.
“This three month plan can be described in two words: cut, and uncertainty,” Murphy said. “As we move forward toward the nine-month Fiscal 2021 budget, our choices will have an even bigger impact. We cannot just cut our way forward. We must have the flexibility to borrow essential funds to secure the core services we will rely upon as we emerge from this pandemic, and we need direct assistance from the federal government. Absent those, the tough decisions we have made now will pale in comparison to those which lay just around the corner.”
More specifically, the supplemental appropriations bill includes the following key provisions across various state departments:
The plan is supported by $8.625 billion in total resources, and ends with a surplus of $956 million through September 30. The revised surplus, which includes the transfer of the entire $421 million Surplus Revenue Fund (Rainy Day Fund) to the General Fund, is up $462 million from the May 22 budget update.
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