5 Big Takeaways From Murphy's Budget Address

NEW JERSEY - The Garden State will see increases to public school funding, expanded tax relief programs, energy grid upgrades, a new "dedicated" NJ Transit funding stream and more under a budget proposal outlined in Gov. Phil Murphy’s budget plan for the 2024-25 fiscal year.

Murphy’s address, delivered Tuesday before a joint session at the New Jersey state house in Trenton, outlined a budget surplus of over $6 billion with an emphasis on affordability, health care and infrastructure improvements in the Garden State.

"It is for the working- and middle-class families of New Jersey that we have crafted our proposed budget for the 2025 fiscal year," Murphy said in his remarks.

"It is a budget ... that will make life more affordable for more families by lowering costs and increasing opportunities," Murphy said, "and it is a budget that will protect our fundamental rights and freedoms — from voting rights, to reproductive rights, to every right in between."

Here are five big takeaways from Murphy's 2025 fiscal year budget address:

1. Tax relief

A record $3.5 billion is expected to return to the pockets of New Jersey’s taxpayers in the upcoming year, Murphy said, moments before announcing the expansion of ANCHOR — New Jersey's largest property tax relief program — and the Senior Freeze Program. Last year, the ANCHOR program alone provided more than $2.2 billion in direct relief to Garden State residents.

Aside from New Jersey’s current programs, which also include the chid tax credit, RetireReady NJ (which will provide nearly every worker an option to invest in a retirement savings plan) will now be funded by the state budget, Murphy said.

The StayNJ program, which won’t go into effect until at least 2026, will see its second year of funding in the upcoming fiscal year. Read more: 2023 NJ Property Tax Reimbursement Program: Eligibility, How To Apply

"At a time when families are grappling with higher prices at the checkout counter, we are putting more money back into their pockets than ever before," Murphy said.

2. Schools

The state budget for New Jersey’s public schools is set to increase by more than $900 million, up from last year's proposed $20.5 billion school funding, Murphy said.

"We will be the first administration, in our state’s history, to fully fund New Jersey’s school funding formula," Murphy said, noting the last administration's purported school budget gap of $9 billion. "I am honored to report that the single largest investment in our budget is dedicated to New Jersey’s best-in-the-nation public education system."

The proposed budget will also allow for Student-Teacher Stipends, $5 million for New Jersey’s Teacher Loan Redemption program and an additional $30 million investment into free school meals for 60,000 more children than last year.

"There are some politicians, in other states, who do not consider this a priority," Murphy added. "Instead of feeding our kids, they want to get rid of child labor laws and put our kids to work.Well, we do things differently here in New Jersey. We are ridding hunger from our lunchrooms and putting more kids in our classrooms."

3. Health care

During his remarks, Murphy announced a $5 million investment into a new Nursing Workforce Initiative poised to address the statewide nursing shortage and recruit aspiring nurses. The program would also help future nurses pay off their student loans and provide funding training grants.

Another $50 million is earmarked in the budget to invest in reproductive freedom protection and "ensuring every woman can make her own decisions about her own body," although scant details were made available about the investment during Murphy's address.

Last month, Murphy called on the legislature to pass the Louisa Carman Medical Debt Relief Act, a package aiming to protect families from falling into medical debt. If passed, the legislation would follow a $10 million medical debt relief program that alleviated medical debt for tens of thousands of residents, Murphy said during his State of the State address.

The package is named for a member of the Office of Health Care Affordability and Transparency and a "major force" behind the legislative package who died in a car accident on New Year's Day at the age of 25.

"As we continue to advance this legislative package our budget will invest in cracking down on predatory medical debt collectors and prevent them from harassing our families," Murphy said.

4. Energy & Technology

Modernization improvements to the state's energy grid were emphasized during Murphy's comments, with the governor announcing a $40 million investment that state officials plan "to double" through federal match funding.

Thousands of electricians, engineers, construction workers and more are expected to work on the clean energy-focused improvements.

Murphy noted a $4.5 million AI innovation challenge is included in the budget "to share our state’s resources with innovators eager to harness generative AI so they can change the lives of billions for the better."

5. Transportation

All eyes have been on Murphy's administration to address NJ Transit's funding woes detailed in the transit provider's fare increase announcement last month, and during his address, Murphy delivered his proposed solution at last. Read more: NJ Transit To Raise Fares 15% On July 1

The governor proposed a Corporate Transit Fee that will create a "dedicated funding stream" for NJ Transit from New Jersey companies with net incomes greater than $10 million.

"With our budget, we are going to build on our progress in fixing NJ TRANSIT in a way that is consistent with our vision for a stronger and fairer New Jersey," Murphy said. "Let me take this opportunity to thank, in advance, the big companies which will be stepping up. Many of them have partnered with our administration since day one — and they have been essential in getting our economy back on its feet post-pandemic."

What’s next?

Public hearings and committee meetings will begin before a anticipated balanced budget is due on July 1. You can watch Murphy's full address below: