In a snub of Governor Phil Murphy, Democratic lawmakers will be introducing a state budget that completely ignores Murphy’s proposed tax on millionaire’s and corporations, setting up a major fight between top New Jersey Democrats which could end up turning into a government shutdown. The budget will be around $38.6 billion, close to the amount of Murphy’s proposed spending.
It is unclear how Governor Murphy will respond to the passing of a state budget that doesn’t include a millionaire’s tax, a position he has championed since taking office. While Murphy will likely veto the bill or attempt to renegotiate it, it is also possible that he winds up signing it into law, if for no other reason than to avoid yet another damaging public fight with Democratic lawmakers.
A budget must be passed before the beginning of the new fiscal year on July 1st. Failure to do so would result in a government shutdown which would likely result in thousands of public workers being furloughed, and courts and the DMV being shuttered. State parks and beaches would also be closed to the public just before, and perhaps including, the July 4th holiday.
Despite New Jersey being a Democrat-trifecta state with both state houses and the governorship being controlled by Democrats, agreeing to a state budget has been far from a smooth process. Governor Murphy is desperate to get his millionaire’s tax passed, and has been pressing lawmakers to support it. However, Senate President Stephen Sweeney, no friend of Murphy’s, has been adamantly opposed to it, and has refused to bring it to a vote.
A similar situation occurred last year over Murphy’s millionaire tax, but a last-minute deal was reached to avoid a shutdown. The agreement imposed a tax only on those making over $5 million a year.
