6 Points In NJ Gov. Phil Murphy's Budget Address That Affect You

NEW JERSEY – New Jersey Gov. Phil Murphy did what everybody thought he would do on Tuesday: deliver a 2020 budget address that proposed a big burst of funding to schools and a tax hike on anybody who makes at least $1 million a year.

But his address covered a lot of areas – additional school aid and pension funding, boosting health care, improving NJ Transit – that millions of New Jerseyans may find interesting, if not appealing (or even detestable).

One thing that wasn't addressed directly, but became public anyway: Murphy 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. Read more: WATCH: Murphy Pitches $50M For NJ Schools In Budget Address

The speech came 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)

Here are six major points from his remarks that could affect New Jerseyans in a big way:

School aid

Murphy, whose administration has taken heat for state aid cuts to hundreds of schools, proposed a one-time $50 million bust in aid to stabilize school finances without cutting vital student programs.

Lawmakers have 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.

Murphy, however, has rejected those efforts, calling property taxes "regressive." Read more: NJ Gov. Murphy Vetoes Raising Property Taxes To Fix School Aid

"School taxes make up more than half of the average property tax bill in New Jersey, so there is urgency in our action," he said. "And, as we make up for the years of aid cuts and flat funding that preceded us, taxes in more than 250 school districts are stabilizing. And, as we continue to reinvest, that number will grow."

Murphy said his budget also proposes an additional $336 million investment in the state's K-through-12 classrooms for the upcoming school year.

On Thursday, the governor will visit the Bound Brook School District when the state aid amounts for the 2020-21 school year are released.

Millionaire's tax

Murphy once again made a pitch to raise taxes on those earning $1 million or more a year, but he did it with some wind at his back this time.

Senate President Steve Sweeney has opened the door to passing a millionaire's tax, Patch has learned. 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

Murphy said the millionaire's tax is "the way we both ensure tax fairness for our middle-class and fairness to the dedicated rank-and-file women and men of our public workforce."

"The millionaire’s tax is a matter of fairness to our middle-class homeowners and renters, our seniors, and the countless working families reaching to pull themselves up and into the middle class," he said in his prepared remarks.

Murphy also took aim at those who have said the millionaire's tax could chase away people from the state.

"There is not one iota of hard economic evidence that has proven the myth of millionaire tax flight, and yet, I have heard from countless middle-class families and seniors who are afraid that they may have to leave because of high property taxes," he said.

Murphy thanked Sweeney for "his willingness to embrace a millionaire’s tax in this budget. When we have tax fairness, we can continue our historic investments in our pension systems and in our middle-class families."

Pension system

With Sweeney continuing to urge for some kind of fix, Murphy signaled that he's ready to provide a boost to New Jersey's beleaguered pension system.

In addition to a $794 million increase for Fiscal 2021, the Murphy administration will make an extra $279 million payment into the pension system this current fiscal year.

"This is a roughly $1.1 billion increase in our overall pension payment," Murphy said. "This administration will have put more back into the system in just three years than the preceding one did in eight."

Boosting health care

Murphy said new Office of Health Care Affordability and Transparency has been tasked to lower the costs of health care for millions of residents and build upon out-of-network reforms.

Here is what the Murphy administration has done or hopes to do:

• Expanding eligibility for the Pharmaceutical Assistance for the Aged and Disabled – or, PAAD – and Senior Gold programs to thousands more New Jerseyans.
• Investing an additional $200 million to further lower the costs of health insurance for individuals purchasing plans through the Affordable Care Act.
• Fully funding women’s health care and family planning.
• Maintaining the "data-driven and whole-of-government fight" against the opioid scourge.
• Continuing the partnerships to combat the infant and maternal mortality disparities.
• Investing in programs and services for youth so they don’t get entangled in the juvenile justice system.

Guns

Murphy called on raising the cost of handgun permits for the first time since 1966.

Murphy said the move is not about the 2nd Amendment. "This is about public safety," he said.

The fees are meant to cover the costs of State Police background checks on prospective gun buyers "and, right now, they don’t come close to doing so," he said.

"It’s still just $2 to get a handgun permit. It’s still more expensive to buy a dog license. That’s entirely backwards. Let’s fix this, so we can keep guns out of the wrong hands," he said.

NJ Transit

Murphy said the budget will continue the administration's work in fixing in NJ Transit, increasing the state's investment by another $132 million to a record total of nearly $600 million.

Murphy said the increase will help train an additional 98 new locomotive engineers, fund service enhancements at both Newark and New York Penn Stations and start a new Electric Bus program. It will also protect NJ Transit's commuters from a fare hike for a third straight year, he said

"This is an investment in NJ Transit, but it is, even more, an investment in our commuters and our communities," he said. "It is an investment in giving New Jerseyans the freedom to leave their cars at home and to take our trains and buses."

You can watch the address here: