Shutdown in New Jersey averted by 11th hour budget deal

"I believed in my core that we'd eventually get here," Murphy said.

David Madden
June 30, 2018 - 10:41 am
Governor Murphy, Lieutenant Governor Oliver, Senate President Sweeney and Speaker Coughlin hold a press conference on budget agreement in Trenton on June 30, 2019.

Photo Credit: Edwin J. Torres Governor's Office.

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TRENTON, NJ (KYW Newsradio) -- New Jersey will not endure a second government shutdown in as many years. Governor Phil Murphy and fellow Democrats in the legislature have cut a budget deal, just hours before a Midnight deadline. The legislature will take action on the accord early Sunday morning.

The budget contains a millionaires tax at the 10.75 percent rate the Governor wanted, but triggers at $5 million of income which was the legislature's goal.

A four year surcharge on Corporate Business taxes will start at two and a half percent and lower to one and a half in year three.

The sales tax will NOT go up to seven percent, remaining at six and five eights percent.

Governor Holds Press Conference on Budget Agreement

The tax increases are expected to bring in an additional $700 million in annual revenue. The plan also anticipates a surplus of $750 million next year while increasing spending on everything from community college subsidies to transportation to pensions.

Murphy insists he never had a doubt there'd be an accord.

"I believed in my core that we'd eventually get here," the Governor told reporters at a Trenton news conference, "as I'm sure the Senate President and Speaker and their teams and colleagues both did as well and I thank them for not giving up until we had an agreement."

There were personal wins for Senate President Steve Sweeney on long term education funding reform, and Speaker Craig Coughlin who sought more money for homestead rebates.

For all the smiles and handshakes at the announcement, perhaps Sweeney summed it up best when he said he and Murphy went through "one hell of a journey".

"Changing course in New Jersey is never easy and the legislature and the Governor worked through this," Sweeney (D-Gloucester County) said. "I am proud that the Governor was willing to compromise. I appreciate the compromise. I think we all did and at the end of the day, we got a budget that's going to fix our schools and move this state forward."​

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