Tagged: New Jersey General Assembly

A Look Ahead: The 221st Legislature and State of the State Address

On Tuesday, the 221st Legislature commenced in Trenton. The Senate welcomed 10 new Senators to the chamber, namely: Sen. Carmen Amato, Jr. (LD9); Sen. John Burzichelli (LD3); Sen. Owen Henry (LD12); Sen. John McKeon (LD27); Sen. Angela McKnight (LD31); Sen. Paul Moriarty (LD4); Sen. Raj Mukherji (LD32); Sen. Parker Space (LD24); Sen. Britnee Timberlake (LD34); and Sen. Latham Tiver (LD8). Senators McKeon, McKnight, Moriarty, Mukherji, Space, and Timberlake each moved over to the Senate after serving in the General Assembly during the last session. Sen. Nick Scutari, of Union County, was elected to continue as Senate President, and Sen. M. Teresa Ruiz, of Essex County, will continue as the Senate Majority Leader. Sen. Shirley Turner, of Mercer County, has been named President Pro Tempore, a position she previously held twice, and Sen. Anthony Bucco, of Morris County, will continue as the Senate Minority Leader.

The Gibbons Government & Regulatory Affairs Group’s 2023 General Election Recap

Many political pundits predicted that the 2023 General Election would mirror the 2021 vote, when Republicans picked up seats in the State Legislature by defeating incumbent legislators. A historical repeat seemed possible since the Legislature was running in new districts under a “consensus” map agreed to by both parties, recent polling data has indicated that President Biden has become less popular in New Jersey, and the issues at the forefront created opportunities for the minority party. The most closely watched legislative districts were Districts 3 and 4 in the southern part of the state, Districts 11 and 16 in the central region, and District 38 in northern New Jersey. It was the Democrats, however, who flipped the script from 2021 and ended up gaining five seats in the State House by holding off challengers and defeating incumbent and favored Republican candidates: In Legislative District 3 (Gloucester/Salem/Cumberland Counties), incumbent Republican Senator Ed Durr lost to former State Assemblyman John Burzichelli. Senator-elect Burzichelli’s running mates for the Assembly, Heather Simmons and Dave Bailey, appear on track to defeat incumbent Republican Assemblywoman Bethanne McCarthy Patrick and Thomas Tedesco. These results will flip the Third District from Republican to Democrat. With three open seats in Legislative District 4 (Camden/Gloucester Counties), incumbent Assemblyman Paul Moriarty won an open Senate seat...

Governor Murphy Delivers His Fifth State of the State Address

For the first time since 2020, Governor Murphy delivered his State of the State address yesterday in person at a joint session of the New Jersey Legislature. Unlike his prior State of the State addresses, which focused on his first-term theme of a “stronger and fairer” New Jersey, this fifth address brought a new refrain – New Jersey as a State of Opportunity. A significant portion of the Governor’s speech focused on the areas where the state is providing opportunities or leading. He identified areas such as economic development, criminal justice reform, reproductive freedom, youth mental health, opioid use recovery, and clean energy as major policy initiatives in this regard. The Governor painted New Jersey as a “business friendly” state, highlighting New Jersey’s job growth over the past two years and the current unemployment rate, which is below the national average. The Governor also touted New Jersey’s growing gross domestic product, asserting that the state’s third quarter 2022 growth was the highest in the northeast region and 10th highest in the nation. Governor Murphy stated that New Jersey is a leader in new and emerging industries, such as wind energy, cannabis, online gaming, and financial technology, while continuing to cultivate legacy industries, such as life sciences, that have long had a presence here. In his...

Governor Murphy Presents His Fiscal Year 2023 Budget

Governor Murphy presented his Fiscal Year (FY) 2023 Budget to a joint session of the State Legislature in a live address for the first time since February 2020. The proposed budget totals $48.9 billion – a $2.5 billion increase over the FY 2022 budget – and includes a $4.2 billion surplus, which is nearly double the surplus included in last year’s budget. The proposal does not include any new taxes or fees. In fact, the Governor’s spending plan includes a one-year fee holiday to waive fees typically assessed for driver’s license renewals, marriage licenses, state park entry, and license fee applications or renewals for roughly 130,000 professionals across the health care spectrum. The Governor themed his budget address around one word: Affordability. This became a key issue in the 2021 gubernatorial and legislative election, and is something both the Governor and legislative leaders identified as their priority for the current legislative session. The budget proposal looks to improve affordability in the State by addressing property taxes and access to housing. It appropriates $900 million for the Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) Property Tax Relief Program, which proposes to provide property tax rebates to both homeowners and tenants. Additionally, the Governor’s budget allocates $300 million to the Affordable Housing Protection Fund to...

A Look at the 220th Legislature and Annual State of the State Address

On January 11, 2022, New Jersey began a new legislative session marked by the Legislature’s reorganization and the Governor’s State of the State Address. Legislative Reorganization Democrats retained control of both houses, albeit with much smaller margins after Republicans managed to win back several seats in the November elections. Democrats now hold a 24 to 16 majority in the Senate and a 46 to 34 majority in the General Assembly. The Senate has new leadership for the first time in twelve years, with Senator Nicholas Scutari of Union County being sworn in as the Senate President and Senator Teresa Ruiz of Essex County becoming the Senate Majority Leader. Senator Sandra Cunningham of Hudson County remains the Senate President Pro Tempore. Senator Steven Oroho of Sussex County is now the Republican Leader, replacing Tom Kean, Jr., who did not run for reelection in order to focus on his campaign for the 7th Congressional District. The Senate also welcomed five new members. Senators Jon Bramnick (R-21), Gordon Johnson (D-37), Jean Stanfield (R-8), and Andrew Zwicker (D-16) all previously served in the General Assembly. Senator Ed Durr (R-3) has not previously held elective office. In the Assembly, Craig Coughlin of Middlesex County and Louis Greenwald of Camden County will continue as Speaker and Majority Leader, respectively, for another...

A Look at Governor Murphy’s Fiscal Year 2022 Budget Proposal

Against the backdrop of the COVID-19 pandemic and an upcoming election in which the governorship and all 120 seats of the Legislature are on the line, Governor Murphy presented his Fiscal Year 2022 Proposed Budget through a virtual address. Unveiling a $44.8 billion spending plan, the Governor proposed no tax increases, a full payment to the pension system, new initiatives, and a significant surplus. Projected Revenues The Governor estimates total revenue in FY 2022 of $47.2 billion, due in large part to the FY 2021 revenues exceeding projections, which provides an opening balance for FY 2022 of $4.9 billion. The Administration also estimates a 2.4 percent growth in total revenue during FY 2022. Revenues are not based on any increases in tax rates or new taxes and do not account for any additional federal assistance to the State from a new stimulus package. Proposed Appropriations Total appropriations of $44.8 billion are $3.6 billion more than the prior fiscal year’s, an increase of 8.8 percent. The two largest expenses in the Proposed Budget are pre-K – 12 education ($18.1 billion) and the full Actuarially Determined Contribution (ADC) pension payment ($6.4 billion). These two items by themselves account for 55 percent of the State’s total spending. Other significant appropriations include: $2.6 billion to the State’s higher education...

A Look at the Nine-Month State Budget Proposed By Governor Murphy

Governor Murphy presented a nine-month budget on August 25, 2020, for the abbreviated State Fiscal Year starting October 1, 2020. Relying on a mix of borrowing, tax increase, and budget cuts, the Governor’s proposal for the nine-month fiscal year proposes $32.4 billion in spending, with a proposed budget surplus of $2.2 billion. Coupled with the temporary three-month budget effective July 1 to September 30, 2020, total spending over the twelve-month period would total slightly more than $40 billion. The Governor’s Budget Proposal estimates that roughly $6.2 billion of funding is required to offset anticipated lost revenues from COVID-19. To make up for that shortfall, the Governor is proposing to borrow $4.0 billion as authorized by the “COVID-19 Emergency Bond Act.” The New Jersey Supreme Court recently upheld the Act as constitutionally permissible under the Emergency Exception of the Debt Limitation Clause. An additional $1.0 billion in tax increases and $1.2 billion in programmatic cuts are also proposed. The two main tax increases proposed include a tax of 10.75 percent on income over $1.0 million and an extension of the Corporate Business Tax surcharge of 2.5 percent. The Budget Proposal does maintain some programmatic spending at levels equal to that of the prior fiscal year and proposes new spending. For example, there are no cuts to...

Governor Murphy Proposes the Fiscal Year 2021 Budget

Governor Phil Murphy presented the outline of his spending plan for Fiscal Year (FY) 2021 to the State Legislature on February 25, 2020. The FY 2021 Budget proposes total revenues exceeding $42.7 billion (a 4.3 percent increase from FY 2020), and $40.8 billion in total appropriations (a 2.2 percent increase from FY 2020). An additional $1.6 billion is dedicated for surplus and $300 million is directed into the State’s “rainy day” fund. If enacted as proposed, this would be the largest budget in New Jersey history. One of the biggest expenses is the annual payment to the State’s pension system; a proposed total of $4.9 billion for FY 2021. If funded at this level by the Legislature, the contribution to state pension system would consume 12 percent of all state appropriations. This contribution is still only about 80 percent of what is actuarially required. Additional priorities for the Governor include increases to the state education funding formula by $336 million; another $132 million for NJ Transit; creating the Garden State Guarantee to provide two years of tuition free higher education; funding for lead service line replacements; and expanding eligibility for the Earned Income Tax Credit Program and the Pharmaceutical Assistance for the Aged and Disabled and Senior Gold programs. The Governor proposes to pay for...

Highlights from the Swearing-In of the 219th Legislature and Governor’s State of the State Address

The 219th Session of the New Jersey Legislature started on January 14, 2020 with the reorganization of the Legislature and the Governor’s State of the State Address. Legislative Reorganization The General Assembly welcomed seven new members, with Democrats still retaining a significant 52-28 majority. Speaker Craig Coughlin (D-19) retained his post for another two-year term, as did Majority Leader Louis Greenwald (D-6) and Minority Leader John Bramnick (R-21). The State Senate is also controlled by the Democratic Party with a 25-15 majority. Senate President Steve Sweeney (D-3) became the longest-serving Senate President in New Jersey history, starting his sixth term as leader of the Senate. Senator Tom Kean (R-21) returns as Senate Minority Leader for another term. In their respective speeches, legislative leaders struck similar messages of unity, compromise, and improving the quality of life for all residents. Senate President Sweeney focused on school funding, higher education, water quality, and the need for improvements to New Jersey Transit. Speaker Coughlin and Majority Leader Greenwald highlighted their priorities which included water quality, as well as tax reform and affordability, behavioral health, and food insecurity. Assembly Republican Leader Bramnick took a different approach and specifically addressed cooperation, and condemned hate and violence at all levels. He did, however, put forth a proposal to cap legislative spending increases...

2019 Election Results Bring Little Change to State Legislature

Democrats billed the 2019 elections as a referendum on President Trump. Republicans dubbed the off-year contests as the “Murphy Mid-Term” and a chance to stall Democratic attempts to build on the “blue wave” of 2018. Who was right? It looks like both sides can declare victory. With the 80 seats of New Jersey General Assembly up for election, along with a Special Election for the Senate seat in the First Legislative District (Cumberland, Cape May and Atlantic Counties), the election returns produced mostly a status quo result. Democrats will continue to control both the General Assembly and State Senate, but with majorities slightly smaller than in the past session. All three Democratic incumbents in the First Legislative District lost to their respective Republican challengers. The race for the two Assembly seats in the Second Legislative District was extremely close, but it appears the Democratic incumbents will be victorious. Even with the loss in the First Legislative District, Democrats still retain a wide majority in the Assembly (52-28) and the Senate (25-15). Republican incumbents were able to hang onto victory in District 8 (Burlington County), District 21 (Morris, Somerset, and Union Counties), and District 25 (Morris and Somerset), where Democrats ran particularly hard in all three districts. Democrats did show strength at the local and county...