$3.5 Billion in Tax Relief? NJ Governor Phil Murphy Presents New Budget for 2025

by Staff
Phil Murphy

On Tuesday, NJ Governor Phil Murphy outlined his new budget proposal for fiscal year 2025. Murphy outlined that the new budget would offer seniors and working-class families tax relief via the ANCHOR Program and child tax credits. 

Tax Relief Coming To New Jersey

Governor Murphy’s proposed budget aims to provide over $3.5 billion in direct property tax relief, continuing the successful ANCHOR program. It also expands tax credits for working families and maintains support for seniors’ prescription drug costs. Additionally, the budget introduces the RetireReady NJ program for retirement savings and allocates over $50 million to enhance homeownership opportunities, including down payment assistance and support for housing development.

Murphy proposed $55.9 billion in spending for 2025—over a billion dollars higher than last year’s budget. Beyond tax relief aimed at uplifting NJ’s lower and middle classes, the Governor’s priorities include the public education system and NJ Transit, which proposed fare hikes earlier this year. 

Governor Murphy’s office released this proposal on NJ’s official website. The letter outlines Murphy’s effort to make New Jersey “the best place to raise a family.” 

NJ Public Education

The new budget reinforces Governor Murphy’s commitment to New Jersey’s public schools, with a $908 million increase in K-12 aid, totaling nearly $12 billion over seven years. It also allocates $124 million for Pre-K expansion and over $15 million for teacher support. Additionally, the budget earmarks over $100 million for children’s health coverage, $30 million for free school meals, and participation in the Summer EBT program to combat child hunger. To improve student literacy, a $2.5 million screening grant program is proposed for school districts.

New Jersey public schools rank third in the nation.

Changes To NJ Transit

Governor Murphy proposed a Corporate Transit Fee in the budget. This fee targets large corporations with over $10 million in net taxable income to provide dedicated funding for NJ Transit. Small and medium-sized businesses won’t be affected, and approximately 2,500 companies will see tax reductions compared to last year according to his office. 

Benefits for NJ Public Sector Employees

The new budget looks to prioritize public sector employees with a $7.162 billion full pension payment, funded partially by State Lottery contributions. This marks a total contribution of $39.9 billion, exceeding previous administrations’ combined contributions. The budget also emphasizes fiscal responsibility, boasting a $6.1 billion surplus and allocating funds for debt reduction, State Police Training Center completion, and State park revitalization.

About the Author/s

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The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.

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1 comment

Jim February 28, 2024 - 6:30 pm

So we increase spending and give away more money. Who is going to pay? It is time to END public Employee benefits that far outstrip the private sector. They work for us! Not the other way around.


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