Assemblyman John DiMaio expressed concern about Gov. Phil Murphy’s next budget proposal while speaking to reporters Tuesday about Murphy’s state of the state address. (Hal Brown for New Jersey Monitor)
New Jersey Republican leaders reacted to Gov. Phil Murphy’s state of the state address Tuesday with dismay, arguing the governor and their Democratic counterparts need to increase focus on affordability.
Murphy’s wide-ranging, roughly hourlong speech touched on the state’s cost of living when the governor touted hikes to the minimum wage and property tax relief. But the top officials in the minority party said Democrats need to do more.
“Why don’t we just start lowering costs for government? We need to get back to a situation where the state takes a holistic look at the budget and says, ‘What do we need to do, what would we like to do, and what can we no longer afford to do?’” Sen. Tony Bucco (R-Morris), his chamber’s minority leader, told reporters following the governor’s address.
New Jersey’s present budget, which runs through June, calls for the state to spend more than it takes in through taxes and other sources of revenue. Built-in cost increases and expiring one-shot revenue sources are set to expand that structural deficit from $2.1 billion to more than $3.8 billion in the budget year that begins on July 1.
Republicans have pointed to sharp growth in annual spending over Murphy’s tenure that took the state’s annual spending from $34.7 billion in Gov. Chris Christie’s final year to $56.6 billion, a 61% increase.
Much of those increases can be attributed to increases in state school aid and pension funding, which have added a combined $8.2 billion in annual spending. Tax relief programs like the $3.5 billion Anchor program and the still-nascent Stay NJ have also boosted spending.
Still, Republicans urged Murphy to cut back as he enters the final year of his tenure. Murphy leaves office in January 2026.
“Look out. In six weeks, we’ll hear from the governor about his budget proposal: A massive budget shortfall, underperforming revenue, a depleted surplus, or higher taxes and the Stay New Jersey nightmare,” said Assemblyman John DiMaio (R-Warren), his chamber’s minority leader.
Murphy addressed some of the Republicans’ complaints during his address, saying the budget is higher under him than it was under Christie because “that’s what happens when you finally pay your bills.”
“Passing the buck was Trenton’s favorite game for far too long. Let me be clear: those days are over. And we are not going back,” Murphy said.
Though dissatisfied with Murphy’s affordability agenda, Republican leaders were more willing to entertain other proposals. Murphy’s speech called for lawmakers to support zoning reforms that would speed the construction of new housing by “cutting red tape and easing outdated restrictions,” though few details about the proposal are known.
Despite broad concerns with a recent affordable housing law signed by Murphy, Bucco suggested members of his caucus could support a proposal to reform zoning rules in the state.
“I think the devil will be in the details,” said Bucco. “If they’re just going to impose zoning requirements, then no, I don’t see that. If there’s sound planning that’s put into it and it makes sense, then we’ll see.”
The governor raised some other policies supported or championed by members of the minority.
Murphy said he backs a policy to bar the use of cellphones in classrooms. The Senate on Tuesday unanimously passed legislation that would require the Department of Education to develop a policy on cellphones and social media in schools (the bill awaits a vote in the Assembly). And he backed a proposal from Sen. Joe Pennacchio (R-Morris) and Assemblywoman Aura Dunn (R-Morris) to retool the state’s farmland assessment property tax break to prevent tax avoidance.
Republican leaders said they want more bipartisan efforts akin to a recent bill package that raised penalties for some car thefts and burglaries in some circumstances, among other things.
“We developed bipartisan legislation that has had an impact. The governor talked about it. That’s what people want. That’s where we need to go, not these progressive policies,” Bucco said.
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