NJ Politics Digest: Legislature’s Budget Advances During Busy Day in Trenton

It was a day of drama and action in the New Jersey state house.

The New Jersey state house.
The New Jersey state house. Kevin B. Sanders for Observer

It was a day of drama and action in the state house Thursday, as the Democratic legislature passed a $36.5 billion state budget after legislative leaders failed to reach a compromise on the spending plan with Democratic Gov. Phil Murphy.

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Murphy, whose competing $37.4 billion budget plan calls for $1.5 billion in new taxes, accused legislators of perpetuating the short-term fiscal policies of former Gov. Chris Christie.

Murphy wants to impose a millionaires tax, raise the state sales tax, impose new taxes on internet purchases, as well as ride- and house-sharing services, and legalize and tax marijuana. Murphy’s plan calls for increased school funding, more aid for NJ Transit, free community college for low-income students and expanding the state’s pre-k program.

Senate President Steve Sweeney and Assembly Speaker Craigh Coughlin oppose both the millionaires tax and sales tax hike and are pushing an alternative plan that would temporarily raise taxes on corporations. They contend raising taxes will just increase the flight of residents from the state.

No matter which budget is adopted, it’s likely New Jersey residents will face a new tax on online purchases, since the U.S. Supreme Court cleared the way for such a measure with a ruling Thursday.

Residents are also likely to be hit with a shopping bag tax, as the legislature passed a measure to impose a 5-cent fee on both plastic and paper shopping bags. While the fee is ostensibly meant to reduce plastic pollution, it would also seem to discourage use of paper bags. And 4-cents of the fee will go to state coffers. The money is supposed to be used to fund lead abatement programs, but the legislature has already inserted language into the bill allowing them to use the money to plug holes in the regular budget.

Murphy seems intent on linking the Democrats to Christie, the two-term GOP governor who left office with record-low approval ratings following the Bridgegate scandal and a failed presidential bid. But Murphy, who was ambassador to Germany during much of Christie’s first term, also seems to forget that residents gave the former governor the high approval ratings during that time, when he teamed with Sweeney and other Democrats in the legislature to enact measures aimed at addressing the state’s crushing tax burden.

Murphy, a millionaire who campaigned for his first elected office on a pledge to aid the state’s middle class, contends residents won’t mind paying more in taxes if they feel they are getting good value for their money. Critics claim Murphy is more interested in establishing his progressive credentials for a future presidential run than actually addressing problems affecting most state residents, a charge the governor has repeatedly denied.

Quote of the Day: “It’s just unthinkable that they would do that, because the New Jersey pension system is the worst-funded pension system in America. How can legislators having to deal with this tremendous problem be giving themselves more at the same time?” — Steven Malanga, a fellow at the conservative Manhattan Institute on a measure that would make it easier for some state politicians to boost their public pensions.

Paper or plastic? NJ lawmakers pushing a 5-cent fee on both, angering environmentalists
Single-use plastic and paper bags would be slapped with a 5-cent fee under a bill being rushed through the Legislature amid frenzied negotiations over a roughly $37 billion state budget.
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Lawmakers Look to Divert Funds Before State Has Money in Hand
The Legislature is poised today to impose a 5-cent fee on single-use carry-out bags, but the money may not end up in a lead abatement program as originally intended.
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N.J. Democrats are battling over budget because Murphy wants to be president, top Republican says
A top Republican state lawmaker says there’s a reason Gov. Phil Murphy is battling with his fellow Democrats over the state budget: He’s planning to run for president.
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NJ lawmakers once again moving quickly to boost pensions for some of their own
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NJ remains on verge of shutdown as budget bill heads to Phil Murphy
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Senate Dems Pass $36.5 Billion Budget Alternative, with Help from Bateman and Corrado
Following futile talks with Governor Phil Murphy, one in the morning and one in the afternoon, the state Senate this evening proceeded with passage of its own $36.5 billion budget as an alternative to Murphy’s version.
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Senate Passes Corporate Business Tax Hike with 21 Votes
The Senate passed the corporate business tax hike complement to the budget bill by a party line vote of 21-19.
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Budget talks fall apart again after Murphy, lawmakers meet twice
Budget talks between Gov. Phil Murphy and legislative leaders stalled again on Thursday, prompting lawmakers to push ahead with their own spending plan as the governor blasted his fellow Democrats as irresponsible fiscal stewards.
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Murphy waving GOP senators off budget
Phil Murphy’s making calls.
The governor has been reaching out to Republican senators to try to stop any GOP votes that might otherwise go to Senate President Steve Sweeney’s budget.
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NJ shutdown: Phil Murphy, top lawmakers talk budget compromise with eye on tax surprise
With nine days to approve a budget, New Jersey’s top lawmakers and Gov. Phil Murphy came no closer to reaching a deal over tax increases that would avert the second government shutdown in two years and pump more money into schools and trains.
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Supreme Court ruling on online sales tax could mean windfall for New Jersey
A Supreme Court ruling Thursday means consumers will find themselves paying sales tax on more of their online purchases, but it is also expected to be a windfall for New Jersey and other cash-strapped states.
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Phil Murphy wants to make it a lot more expensive to buy a gun in N.J.
Gov. Phil Murphy is proposing to significantly hike fees for buying and selling firearms in New Jersey, a move that would raise the cost of gun permits and licenses for the first time in half a century and likely trigger a legal challenge from Second Amendment advocates.
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Money Drains as Lawmakers Slow to Approve Refinancing of NJ Transportation Debt
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Will N.J. get legal weed this year or what? Here’s what we know.
Shortly after Gov. Phil Murphy was elected, lawmakers said they wanted to get weed legalized in his first 100 days.
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After Trenton Shooting, NJ Looks to Crack Down on Stolen Guns
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Unintended political consequences
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Woman says she lost two jobs because of Democratic chair fight
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GOP chairman slams Grossman
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Murphy to Undo Contentious Christie Makeover of Mental Health Addiction Services
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Uncorking the Cap: Law Would Make It Easier for NJ Drinkers to Get Wine Shipments
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New Jersey to join multi-state lawsuit against Trump over family separations
New Jersey plans to join nine other states and the District of Columbia in suing the Trump administration to challenge a policy that led to the separation of children from their parents at the southwestern border, Attorney General Gurbir S. Grewal announced Thursday.
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Teen Sought Gun to Shoot Up Graduation
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NJ Politics Digest: Legislature’s Budget Advances During Busy Day in Trenton