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Budgeting

Posted on: June 28, 2021

2022 Budget on Gov. Murphy's Desk

On Thursday both the Assembly and Senate passed A-5870/S-2022, which appropriates $46.3 billion in state funds and $6 billion in federal funds for New Jersey’s FY22 state budget. The budget will now be sent to Governor Murphy desk for his signature. The Governor’s original proposed budget allocated $44.8 billion in state and federal funds. A-5870/S-2022 provides for an increase of $3.7 billion. Below is an overview of the budget, for a full breakdown please see the FY 2022 Budget Scoresheet.

Since Governor Murphy released his proposed budget, there have been a number of changes to FY 2022 budget. The changes include: reversed the plan to use the state’s Affordable Housing Trust fund to fund Affordable Housing Program but instead will use the general fund; changing the base year for property tax amounts in the Homestead Benefit program from 2006 to 2017; authorizing the New Jersey Department of Transportation and NJ Transit to restore obsolete facilities into open spaces and parkland; language that would require the New Jersey Department of Health to develop best practices for local boards of health. These changes come also with a number of grants in aid; allocates Local Transportation Projects funds to be used to provide grants to local units for transportation and pedestrian safety projects; and provides reappropriation and supplemental appropriation for Early Voting Implementation. In addition, the budget language includes the Best Practices Checklist.

While there has been an increase in allocated funds, the Consolidated Municipal Property Tax Relief Aid (CMPTRA) and Energy Tax Receipts is proposed to remain flat at $1.4 billion. Transitional Aid to Localities will receive $122.8 million. Trenton Capital City Aid will receive $10 million. Open Space Payments In Lieu of Taxes (PILOT) will be allocated $6.5 million. The Highlands Protection Fund Aid will receive $4.4 million.

Contact: Andrew LaFevre, Legislative Analyst, alafevre@njlm.org, 609-695-3481, x116.

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