NJ Lawmakers Approve $50.6B Budget: Here’s What it Pays For

TRENTON – State lawmakers are approving a $50.64 billion budget for the fiscal year that starts Friday, including $2 billion to expand property tax rebates and credits and a $6 billion surplus to guard against a possible economic downturn.

The Senate approved the budget in a 25-15 vote early Wednesday afternoon, followed by a 48-30 vote in the Assembly in mid-afternoon.

The budget sets a spending record, as it usually does each year. But the growth is larger than usual – $4.25 billion more than the budget adopted a year ago at this time, up more than 9%, despite pension contributions finally leveling off after reaching 100% of the contribution recommended by actuaries in the expiring budget.

The reinvigorated and rebranded homestead rebate program, now called ANCHOR, accounts for much of that increase – at a cost of just over $2 billion, up from $340 million currently. Homeowners can get $1,000 or $1,500 credits off their May 2023 tax bill, depending on their 2019 income, and renters can get $450 if their income in 2019 was below $150,000.

The budget also restores $75 million in funding to municipalities, about one-fourth of the amount that usually gets diverted from the local energy tax receipts the state collects, provides over $5 billion toward repaying and avoiding debt and makes another full pension payment, nearly $7 billion.

Proud of the spending?

“Am I proud of all the spending?” said Assemblywoman Eliana Pintor Marin, D-Essex, who chairs the budget committee. “I think we’re not all proud of the spending. But I am proud of the fact that we’re trying to little by little chip away at some of the issues that we’ve been talking about.”

“Does it solve all the problems in the world? No legislation, no budget ever does,” said Assemblyman Dan Benson, D-Mercer. “Does it get us a lot closer to that ideal? Absolutely.”

Republican response

Republicans who have been pushing for faster rebate checks to help people deal with inflation and spiking gasoline prices say the budget doesn’t do enough to help people – and takes a victory lap for giving them money back that wasn’t needed in the first place.

“You took $10 billion too much of their money, and now you’re acting like heroic heroes returning their money,” said Assemblyman Hal Wirths, R-Sussex. “You took $20 out of their pockets and you’re giving them 4 bucks back and you’re all cheerleaders.”

“I think there’s so much more we could have done to give back to our people during this time of hurt,” said Sen. Sam Thompson, R-Middlesex.

Below is the list of budget changes by department.

Legislature

2023 budget bill: $109.9 million

Fiscal year 2022 budget: $104.1 million

Change: +5.6%

Governor's Office

2023 budget bill: $11.74 million

Fiscal year 2022 budget: $9.24 million

Change: +27.0%

Agriculture

2023 budget bill: $122.73 million

Fiscal year 2022 budget: $53.5 million

Change: +129.3%

Banking & Insurance

2023 budget bill: $90.26 million

Fiscal year 2022 budget: $89.5 million

Change: +0.8%

Children & Families

2023 budget bill: $1.31 billion

Fiscal year 2022 budget: $1.27 billion

Change: +3.1%

Community Affairs

2023 budget bill: $1.32 billion

Fiscal year 2022 budget: $1.13 billion

Change: +16.0%

Corrections

2023 budget bill: $1.136 billion

Fiscal year 2022 budget: $1.105 billion

Change: +2.8%

Education

2023 budget bill: $18.6 billion

Fiscal year 2022 budget: $18 billion

Change: +3.1%

Environmental Protection

2023 budget bill: $475.5 million

Fiscal year 2022 budget: $426 million

Change: +11.6%

Health

2023 budget bill: $1.158 billion

Fiscal year 2022 budget: $1.14 billion

Change: +1.6%

Human Services

2023 budget bill: $8.254 billion

Fiscal year 2022 budget: $7.358 billion

Change: +12.2%

Labor & Workforce Development

2023 budget bill: $204.9 million

Fiscal year 2022 budget: $208.7 million

Change: -1.9%

Law & Public Safety

2023 budget bill: $798.7 million

Fiscal year 2022 budget: $758.6 million

Change: +5.3%

Military & Veterans' Affairs

2023 budget bill: $103 million

Fiscal year 2022 budget: $99.5 million

Change: +4.4%

State

2023 budget bill: $1.824 billion

Fiscal year 2022 budget: $1.722 billion

Change: +5.9%

Transportation

2023 budget bill: $1.894 billion

Fiscal year 2022 budget: $1.809 billion

Change: +4.7%

Treasury

2023 budget bill: $4.987 billion

Fiscal year 2022 budget: $3.336 billion

Change: +49.5%

Interdepartmental Accounts

2023 budget bill: $6.76 billion

Fiscal year 2022 budget: $6.489 billion

Change: +4.2%

Judiciary

2023 budget bill: $852 million

Fiscal year 2022 budget: $831.6 million

Change: +2.5%

Debt Service

2023 budget bill: $620.7 million

Fiscal year 2022 budget: $395 million

Change: +57.1%