News Flash

Budgeting

Posted on: June 28, 2019

State Budget Update

Sunday, June 30, is the deadline for the passage of the balanced state budget. As you know, last Thursday the State Senate and the General Assembly approved and sent to the Governor a State spending plan for the 2020 Fiscal Year that begins on July 1. S-2020(A-5600) was approved in the State Senate with a vote of 31 – Yes; 6 – No; and 3 not voting. The Assembly vote was 53 – Yes; 23 – No; 3 not voting; and one abstention.

The bill assumes robust corporate and sales tax receipts. It also rejects many of the Governor’s proposed revenue enhancements. The Governor has indicated that he does not share the Legislature’s optimism for the sustainability of such strong sales and corporate tax growth rates. If the bill’s revenue projections cannot be certified, the Governor would need to recommend spending cuts, by using line-item vetoes.

Yesterday at a press conference, the Governor stated that he, “…will not subject our residents to the inconveniences they would suffer under a government shutdown.” We can infer from that comment that he will sign the majority of the budget sent to him by the Legislature, though line-item vetoes remain a distinct possibility, if not a likelihood. 

The Governor has now scheduled a budget announcement for Sunday, June 30, at 2:00 p.m., about 10 hours before the State’s Fiscal Year will begin. We will continue to advise you of developments

Contacts:

•    Michael F. Cerra, Assistant Executive Director, mcerra@njlm.org, 609-695-3481, x120.

•    Jon Moran, Senior Legislative Analyst, jmoran@njlm.org, 609-695-3481, x121.


Facebook Twitter Email