Sherrill Signs Budget After Partisan Tension, Party-Line Votes

By Devon Williams (NJ State House News Service)

TRENTON, N.J. – A high-strung Assembly and Senate divided along party lines delivered a record $60.7 billion budget to the governor’s desk Tuesday.

“What we just passed today is an affordability budget, one that attacks the rising cost of housing, health care, utilities, and property taxes,” Gov. Mikie Sherrill said at a press conference Tuesday night, standing with Democratic leaders in the State House rotunda. 

“In March, I proposed a budget of $60.7 billion, and that’s where we landed. Because right now, New Jersey is facing an affordability crisis,” she said.“There are too many people here working too hard to struggle to pay their bills at the end of the month, so this budget, it focuses on you, a budget that builds a future for your kids and your family.”

Sen. Paul Sarlo, a Democrat from Wood-Ridge, praised the bill, saying, “this budget helps to make New Jersey more affordable for our residents. $4.3 billion in property tax relief is a major accomplishment. … [That’s] something each and every one of us can be proud of.”

But Republicans complained that the bill was negotiated behind closed doors and most lawmakers were left with only one day to review a budget they had no input in creating.

Sen. Declan O’Scanlon Jr., a Republican from Little Silver, complained that although Sherrill campaigned on promises of transparency and affordability, he said, “in one fell swoop… all those promises were spectacularly set on fire.”

“We didn’t see a budget earlier than most years this year, we saw it later,” he continued.

“It is very frustrating to get the budget with not enough time to really go through it in depth,” said Assembly Member Gerry Scharfenberger, a Republican from Middleton. “We’re doing this on the fly, and it’s very difficult.”

“The people of New Jersey deserve better than secret deals and last-minute votes,” said Sen. Michael Testa, a Republican from Vineland. “They deserve a process that is open, transparent, and allows taxpayers, stakeholders, and even members of this very legislature enough time to understand and digest how their money is being spent.”

“I know the process needs work.” Sherrill said. “It takes too long. It could be much more transparent, but we took steps in the right direction this year. We didn’t hide behind quick fixes or budget gimmicks or Band-Aids. We made hard choices. We took real decisive action, and we brought more transparency to the process.” 

Sarlo said the budget includes a $6 billion surplus, a $7.3 billion full pension payment, $12.4 billion in school aid, $1.4 billion in pre-K aid, $4.3 billion in property tax relief and $257 million in child income tax credits. 

He argued that “over 50% of the state budget does not go to operating our state government,” but instead is returned to taxpayers, municipalities and school districts.

A bill on taxation of large companies whose employees are on Medicaid became a specific point of stress Tuesday.

“We are penalizing employers because workers are actually [on] Medicaid… Should we not focus our energy on eligibility verification and stopping fraud instead of penalizing small hospitals and the Boys and Girls Club?” questioned Assembly Member Dawn Fantasia, a Republican from Franklin Borough (Sussex).

In addition to large employers like Walmart, Amazon and Wawa, the bill impacts some hospitals and the Boys and Girls Club

Republicans also worried the measure could lead to hiring discrimination against workers on Medicaid and the many reasons employees may waive company insurance. 

Democrats highlighted New Jersey’s strong anti-discrimination laws that prevent such hiring practices and recentered the intention of the bill.

“This bill is not a tax,” said Assembly Member Avi Schnall, a Democrat from Lakewood. “This bill is a reimbursement to the taxpayers of New Jersey, who have been footing the bill for too long.” 

Sherrill said in March that her proposed budget focused on affordability by expanding the Child Tax Credit for low-income families and providing StayNJ property tax relief for seniors earning under $200,000.

But Republicans complained her promises clashed with new business taxes, and millions of dollars in last-minute supplemental funding tacked on to the current fiscal year ending June 30.

“We have $61 billion in spending… and unfortunately we have a new governor who came in with the promise of affordability, and what we have this year in New Jersey is anything but affordability,” said Assembly Member Brian Rumpf, a Republican from Little Egg Harbor.

Testa said, “this budget does not lower the cost of living for residents. It doesn’t make New Jersey more affordable. It simply spends more taxpayer money than ever before.”

But Assembly Budget Chair Eliana Pintor Marin, a Democrat from Newark (Ironbound), defended the budget as a package that required “difficult decisions” while “without losing sight of the people we serve,” pointing to expanded child tax credits, school funding, mental health supports and county child advocacy services.

The budget passed the Assembly 58-20, and the Senate 26-14.

Editor’s note: This story was updated with a correction in paragraph 21 to restore the full name, party and town to Assembly Member Brian Rumpf.