The Democratic legislature and Gov. Phil Murphy reached a budget agreement over the weekend that avoided a state shutdown.
And while the news out of that deal was that millionaires and corporations will be paying more and Murphy abandoned plans to hike the sales tax, there is still reason for regular New Jersey residents to be concerned.
The budget deal also raises taxes on ride- and home-sharing services, and on e-cigarettes and other tobacco products. And the budget also includes $23 million in revenue from a shopping bag tax that the legislature passed and Murphy has yet to say whether or not he’ll sign.
That measure, ostensibly meant to protect the environment, would require shoppers to pay a 5-cent fee for each plastic or paper bag they receive at check-out. A penny of that money would go to shop keepers, but 4-cents would go to the state. And while the legislation called for the cash to be used to support lead-abatement programs, a provision allows the money to be diverted to the general fund.
Supporters say the legislation will prevent more plastic from being released into the environment, But Democratic supporters of the measure also tacked the tax onto paper bags, too, giving shoppers no environmentally-safe and tax-free way to avoid paying if they don’t bring their own reusable shopping bags. If Murphy, who stands to see a bag-tax backlash from tax-weary residents similar to the toilet paper tax anger experienced by former Gov. James Florio, declines to sign the measure, it means he will have to find some other way to plug a $23 million hole in the budget.
Murphy is also facing questions about his future effectiveness as governor. The budget agreement includes one-shot and short-term revenue gimmicks—fiscal moves Murphy had originally said he wouldn’t support. Now the question is whether or not the governor emerges from this battle able to fight again to advance his agenda, or is stymied before he even has a chance to get started.
Quote of the Day: “They have circled the wagons. I don’t think that bodes well for how effective Murphy is going to be at governing.” — Brigid Harrison, professor of political science and law at Montclair State University, on the Democratic legislature’s approach to dealing with the governor.
No Shutdown, But Lots More Taxes
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Someone from out of state watching the continuing drama over the New Jersey budget, would likely be shocked to find out that the governor, Senate president and Assembly speaker are all members of the same party. For Democrats, these budget battles have become commonplace, although they can leave lasting scars within the party.
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The heads of the state’s largest business groups aren’t sold on the last-minute budget Gov. Phil Murphy and legislative leaders agreed to Saturday night.
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Republicans respond: Why would raising taxes be worthy of a celebration?
It was hard to tell what part of the budget compromise was more bothersome to Republicans: The increase in taxes, or what they called a celebration of the increase in taxes by Democratic leaders.
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5 reasons why N.J. is still waiting for legal weed
As June burned to a close, lawmakers in Trenton were still scrambling to pass a budget by the end of the month and avoid a government shutdown. Surprisingly absent from negotiations was one of the main platforms on which Gov. Phil Murphy ran for office: marijuana legalization.
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Holding a sign that read, “Let U.S. Remain Sane and Humane,” Lynne Medina said she drove an hour to Asbury Park on a scorching hot Saturday to attend a Families Belong Together rally because “this is not what our country is supposed to be about.”
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Gov. Murphy says Paterson ‘best days ahead’ at mayor’s inauguration
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Howell homeless camp will be booted after land bought by Lakewood man for $1.6M
A piece of township-owned property where a dozen people have been living in tents for two years was auctioned for $1.6 million last week.
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Editorial: Hold applause on budget deal
Gov. Phil Murphy and state Democratic leaders took turns congratulating themselves this weekend for reaching a compromise on a budget agreement that will keep the state parks and beaches open and allegedly restore responsible fiscal management in New Jersey after eight miserly years of Gov. Chris Christie.
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Editorial: Vote, or abortion could be banned in N.J.
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