Gov Murphy's key 2020 budget changes

Some of the good news: Murphy says, There will be no fare hike for NJ Transit riders and he will fix the agency “if it kills me.” He is still fighting for a stronger Millionaires’ tax. He will make another record-setting pension payment. There will be more money for Pre-K and community college tuition assistance.

Of course all of his proposals will be scrutinized by the Legislature. Sen. President Sweeney said, “Murphy’s budget is a positive step forward,” but more ominously he added, “It’s not the budget he expects to sign.” Speaker Craig Coughlin in his response talked about the importance of “efficiencies.” With all his Assembly members up for election this year he is not eager to increase taxes.

TAXES

Extending the current marginal tax rate for incomes above $5 Million to all income in excess of $1 Million. This change will impact more non-resident than resident tax filers and will help the State support critical programs.

A Corporate Responsibility Fee for employers that have 50 or more employees receiving state Medicaid benefits. The fee is designed to encourage large employers to provide health benefits to their employees, thereby reducing reliance on public benefit programs.

$1 Billion in corporate tax revenue reductions due to legacy incentive agreements (from Christie administration.)