Murphy signs state budget for 2026
Plan includes tax boosts on cigarettes, gambling
By: Katie Sobko
NorthJersey.com
USA Today Network - New Jersey
..... Governor Phil Morphy signed the state's budget for fiscal year 2026 shortly before midnight June 30. [2025]
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The $58.78 billion budget cleared committee in both chambers late on June 27 [2025] and passed the state Senate 26-13 shortly before 2 PM. on June 30. [2025] It was passed by the Assembly in a 52-27 vote with one abstention at about 6 PM on June 30. [2025]
..... An email from Murphy's office was sent at 12:06 AM. July 1, [2025] but spokesperson Mahan Gunaratna confirmed that the signing was done at 11:43 PM. The budget had to be signed by midnight to avert a government shutdown.
..... Murphy said in a statement issued with the signing confirmation that the "budget exemplifies our dedication to fiscal responsibility, affordability, and opportunity for all New Jerseyans."
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"Over nearly eight years in office, we have maintained a steadfast commitment to building a stronger and fairer New Jersey and righting our fiscal ship," Murphy said. "I'm proud that this budget caps off an eight-year journey to turn our state around and deliver greater economic security and opportunity to every family. with the help of our legislative partners, we are future for every child, student, worker, parent, and senior citizen who calls our great state home."
..... In the state Senate, Minority Budget Officer Declan O'Scanlon said the budget is a "fright train of spending."
..... "Republicans have predicted we were heading exactly where we are for years," he said. "Every years we've provided detailed alternatives and reforms and restraints to avoid this fiscal mess we will now be forced to face during the next five years."
..... State Senate Budget Chair Paul Sarlo said that although it was a weekend, people had at least two days of access to the budget bill before this vote, while what's happening now in Washington is a "multitude of amendments being rushed through as we site here with nobody even having the opportunity to look at them."
...... His colleagues state Senator Andrew Zwicher also invoked the proceeding in Washington by pointing out that the federal government was debating a bill of "enormous consequences for this country and in particular this state" because of the potential funding cuts.
..... The budget process started in February [2025] when Murphy delivered the last budget address of his tenure.
..... The plan advanced through committees in both the Assembly and Senate, and then through both bodies for approval.
..... The governor proposed a $58.1 billion budget, replete with money for pension payments, school fundings, StayNJ and ANCHOR.
..... It also included a significant surplus and a few "revenue raisers," also know as tax increases, to address the structural deficit.
..... Not all of those made the cut, but increased taxes on cigarettes, vapes, Online gambling and certain property transfers did.
..... There 's also more than $727 million in spending by the Legislature - commonly known as pork or Christmas tree spending - to the governor's proposed budget.
..... Documents provided by the state Senate democrats to the press indicate the state will earn revenues of $57,311,443 in the new fiscal year, meaning the budget functions at a structural deficit of $1.47 billion.
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Projections show a surplus of about $6.7 billion.
..... The StayNJ property tax rebate program for New Jersey seniors also receives its third tranche of funding before it officially begins next year, [2026] even with the budget surplus not meeting a requisite 12% to provide that funding.
..... The total is about $2.2 billion higher than the fiscal year 2025 budget.