Sherrill unveils $60.7B ‘affordability budget’ as NJ costs soar

TRENTON — Gov. Mikie Sherrill used her first budget address to pitch what she called an “affordability budget,” promising spending discipline, record property tax relief, and no new taxes on everyday New Jersey residents.

Speaking before lawmakers Tuesday, Sherrill warned that when she took office the state was on track to burn through its surplus quickly, forcing painful choices if Trenton didn’t act.

Her proposed $60.7 billion state budget would increase spending by 1.6% over last year's adjusted appropriation. The administration says the proposal reins in spending growth compared to the previous eight budgets, which grew by about 7% annually on average. But Republicans had criticism of her first spending plan.

READ MORE: Business leaders share concerns with Sherrill's budget plan

The spending plan aims to cut the structural deficit nearly in half while still investing in schools, infrastructure and energy programs. According to the administration, about 74% of the budget will flow back to communities through property tax relief, social services, higher education and aid to schools and municipalities.

“This is an affordability budget rooted in lowering costs for hardworking families and making government more accountable,” Sherrill said.

Property tax relief programs

Still, some people would lose out, as Republican lawmakers pointed out after the address.

The income cut-off for the Stay NJ property tax relief program would be halved to $250,000. And the maximum benefit, including the senior freeze program, would be capped at $4,000 instead of $6,500.

Senior homeowners, meanwhile, would no longer get their $250 bonus, which was set to end this year. The plan, however, would continue the bonys for senior renters.

State Treasurer Aaron Binder called the plan “an important step” toward improving affordability while maintaining fiscal discipline.

The budget also makes a full payment into New Jersey’s pension system, making Sherrill the first governor in decades to fully fund pensions in the first year of an administration.

Here are the key takeaways from Sherrill’s budget plan.