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The New Jersey Senate and Assembly are set to vote today on a $58.8 billion state budget before it heads to Governor Phil Murphy for his signature. The deadline for the budget is tonight, and with Democrats controlling both chambers, it is expected to pass. The budget includes tax increases on internet sports betting, gambling, and high-priced real estate, although these are lower than what Governor Murphy initially proposed earlier this year.
The budget, which was approved by budget committees on Friday (June 27), includes $1.2 billion in tax and fee increases. Online gambling and sports betting taxes will rise to 19.75 percent, and the cigarette tax will increase to $3 per pack. Additionally, the budget maintains full pension payments, school funding, and property relief programs such as ANCHOR and StayNJ, while also trimming $100 million in state worker health care costs.
According to ROI-NJ, the budget is expected to create a $3 billion to $4 billion structural deficit, despite a projected $6 billion surplus. Some critics, like Senator Declan O’Scanlon, have raised concerns about the lack of transparency and last-minute changes in the budget process.
NorthJersey.com reports that the budget also includes $727 million in additional spending added by the Legislature, known as "pork" or "Christmas tree spending." The budget must be signed by Governor Murphy by midnight to avoid a government shutdown, marking the last budget of his tenure.