WATCH: Murphy Pitches $50M For NJ Schools In Budget Address

NEW JERSEY – New Jersey Gov. Phil Murphy announced in his Tuesday budget address that he wants to send school districts a big check – $50 million worth – to those hit hard by state aid cuts. Murphy's new budget plan also reportedly calls for a big cigarette tax hike.

You can watch his annual budget address here (see below).

Murphy announced $50 million in one-time stabilization aid to school districts, though it wasn't completely clear which areas will stand to benefit.

In his speech, Murphy said the budget includes funding to stabilize the districts' finances without cutting vital student programs. Murphy said there is "urgency" in this need and hundreds of districts could stand to gain.

The plan comes a month after Murphy vetoed a bill championed by Senate President Steve Sweeney that would have allowed as many as 40 school districts to immediately raise taxes to make up for school funding losses.

Ultimately, more than 100 districts would have been able to take advantage of the legislation over the next 5 years. Read more: NJ Gov. Murphy Vetoes Raising Property Taxes To Fix School Aid

Murphy delivered his Fiscal Year 2021 budget address in the Assembly Chambers at the New Jersey State House beguinning at 2 p.m. on Tuesday.

He delivered it as a new report confirmed that New Jersey has the highest property taxes in the nation. Read more: NJ Homeowners Pay Highest Property Taxes In US, Study Says

You can watch it here:

Murphy said the budget "builds on the significant progress we’ve made for our middle class over the past two years.”

“Since taking office, we’ve sought to build a stronger and fairer economy for every New Jersey family, not just the wealthy or well-connected," he said. "From fighting for tax fairness to boosting funding for our public schools to stabilizing property taxes, I’m proud to say that our budget prioritizes the needs of all our residents.”

In his budget plan, Murphy also proposed raising taxes on cigarette sales in New Jersey by $1.65 a pack as part of budget proposal, sources told Patch. The cigarette tax would be New Jersey’s first in 11 years, Patch has learned, and would bring in about $218 million.

NJ Advance Media and The New York Times were the first to confirm the proposal, saying Murphy plans to raise the tax from $2.70 to $4.35 a pack.

Only Washington DC has a higher tax, at $4.50 a pack. New York and Connecticut charge $4.35, followed by Rhode Island, at $4.25, according to the Tax Foundation.

The cigarette tax hike plan comes days after Sweeney opened the door to passing a millionaire's tax. But it would come with conditions.

Sweeney will consider – and even help pass – a tax hike on those making $1 million or more a year if Murphy agrees to cough up another $1 billion for the state's pension fund, sources told Patch. Read more: NJ May Just Pass A Millionaire's Tax After All: Here's The Latest

The potential deal also comes days after Murphy said he likely has cancer, disclosing that a tumor was discovered on his kidney. He'll undergo surgery in March. Read more: NJ Gov. Phil Murphy Says Tumor Found, Likely Has Cancer (UPDATE)

Last year, Murphy signed the 2020 budget in June after a protracted, acrimonious battle between himself and Sweeney, largely because the senate president vehemently opposed the millionaire's tax.

Sweeney has sought other methods — such as raising property taxes and consolidating school districts — to bring in more revenue to New Jersey and help fund school districts that experienced sharp cuts in state funding. Read more: NJ Gov. Murphy Vetoes Raising Property Taxes To Fix School Aid

Murphy gave up the battle on the tax last year but continued the war with Sweeney by promising to take actions of "fiscal responsibility that were lacking in the Legislature's spending plan and set up New Jersey to better weather a possible future economic downturn."

In June, Murphy froze tens of millions of dollars in spending that had big impact on a number of towns, colleges and roads. The administration, citing better-than-expected revenues, then released the remaining funds last month. Read more: NJ Gov. Phil Murphy Releases $121M For 48 Things You May Need

"We must be honest about its shortfalls: This is a budget that does not include tax fairness, does not ask opioid manufacturers to help fund addiction services, and does not raise gun fees that have been untouched since 1966," Murphy said last year. "These common-sense revenues would have allowed us to save for a rainy day and sustainably fund necessary investments for New Jersey's 9 million residents. Make no mistake, I will continue fighting for tax fairness and fiscal responsibility well beyond (the) budget actions."

Last year, Sweeney said the governor's freeze on items in the budget was "a shameless act of political retribution that is both petty and vindictive — it's Bridgegate on steroids that punishes those who disagree."

"This is an abuse of gubernatorial power that victimizes some of the neediest and most vulnerable people in New Jersey, including cancer patients, the hungry, senior citizens, college students and those struggling to overcome substance abuse problems," he said.