Earlier today, Governor Murphy unveiled his budget proposal for Fiscal Year 2025. The proposal includes a new corporate transit fee on companies earning more than $10 million in annual profits and dedicates those funds to NJ Transit, which would be the first-ever dedicated source of funding in the agency’s history. The budget also includes another full pension payment and would fully fund the school funding formula for the first time in New Jersey history. However, the budget continues to dip into the state’s surplus to cover expenses, highlighting a need for new revenue sources. In response to the budget proposal, New Jersey Policy Perspective (NJPP) releases the following statement.
Nicole Rodriguez, President, NJPP:
“The governor’s budget proposal rightly asks the world’s biggest corporations to pay for the infrastructure that helps generate their record breaking profits. In this current era of rising inequality, if corporations are going to swallow a lion’s share of economic growth, they shouldn’t expect to pay less in taxes and have working families make up the difference. The new corporate transit fee is a testament to the tireless advocacy of workers, transit riders, advocates, and local elected officials in every corner of the state who fought for a fairer tax code.
“This budget proposal still has some red flags that lawmakers will have to address. Even with a strong commitment to long standing funding needs like pensions and schools, the budget proposal still erodes the state’s surplus to fund basic operations. Meanwhile, most programs that promote affordability for low- and moderate-income households like the Child Tax Credit and WorkFirst New Jersey received flat funding – a functional cut in a time of inflation. As New Jerseyans face down fare hikes and cost increases, the onus now shifts to the Legislature to commit to a full reinstatement of the corporate surcharge make the state affordable for all.”
Read NJPP’s latest budget analysis, What to Look for in the New Jersey Budget for Fiscal Year 2025.
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