TRENTON, N.J. (AP) - New Jersey’s treasurer warned lawmakers on Monday that over $800 million in revenue in the current fiscal year won’t carry into the next budget and made the case for Gov. Phil Murphy’s push for higher tax rates on the wealthy.
Treasurer Elizabeth Muoio delivered her annual update to the Assembly Budget Committee, saying that the budget for the current fiscal year has about $812 million in one-time revenues. That’s 2% of the overall budget.
She says those funds came from a one-time tax amnesty as well as other money collected as a result of the 2017 federal tax changes.
“In order to meet our growing structural obligation and fund the crucial investments needed to move New Jersey forward in a fair and equitable manner, the governor is proposing several new tax policy changes,” Muoio, a Democrat, told lawmakers.
Murphy, also a Democrat, is calling for raising income taxes on people making more than $1 million from 8.97% to 10.75%. He has also proposed charging companies that have 50 or more employees covered by Medicaid $150 for each of those employees.
New Jersey’s fiscal year ends June 30. Lawmakers are beginning to weigh the $38.6 billion budget Murphy unveiled last month.
The treasurer also told lawmakers that income tax revenues year to date are weaker than forecast but signaled that there’s reason to believe that collections could pick up this month.
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This article has been corrected to show the governor’s proposed budget is $38.6 billion, not $38.8 billion.
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