As the fiscal year winds down, lawmakers in New Jersey are once again racing against the clock to finalize the state’s multi-billion-dollar budget. With just hours left before a potential government shutdown, all eyes are on the Legislature and Governor Phil Murphy.
What’s Happening in Trenton?
Today marks the final push to pass the state’s new spending plan—estimated at $58.78 billion—before the June 30 deadline. The proposed budget cleared key committees on June 27 and now awaits approval from both the state Senate and Assembly. Though both sessions are scheduled to begin at 11 a.m., legislative delays are common in these high-stakes moments.
If the full Legislature approves the budget, it heads to Governor Murphy’s desk. He must sign it into law before midnight to ensure uninterrupted government operations.
How We Got Here
The budgeting process began in February, when Governor Murphy delivered what will be his final budget address during his time in office. His original proposal outlined $58.1 billion in spending, with a focus on key initiatives such as public school funding, pension contributions, the StayNJ senior tax relief program, and continued support for ANCHOR property tax rebates.
While the governor aimed to address long-term financial gaps with select tax increases—including on tobacco products—lawmakers trimmed some of those proposals during negotiations. Still, the final version includes about $727 million in added legislative priorities.
A Budget with a Deficit
Despite a strong surplus, New Jersey is projected to operate at a structural deficit of nearly $1.5 billion in the upcoming fiscal year. Senate Democrats estimate revenue will total just over $57.3 billion, falling short of the total spending outlined in the plan.
One major expenditure includes a third round of funding for the StayNJ property tax cut initiative for seniors, even though the budget’s surplus fell short of the 12 percent threshold that’s supposed to trigger that funding.
FIFA and Future Investments
Another notable line item includes $13 million allocated to the New Jersey Sports and Exposition Authority. This funding is expected to support preparations for international events, most notably, upgrades to MetLife Stadium ahead of the 2026 FIFA World Cup.
What Comes Next?
If the Legislature and governor meet today’s deadline, the state will avoid a government shutdown and head into summer with a fully enacted budget. But with the added spending, a looming deficit, and major global events on the horizon, questions remain about how New Jersey will balance its financial ambitions moving forward.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.