MURPHY’S $58.8B BUDGET: PROGRESS OR POLITICAL BACKFIRE?

Phil Murphy signed New Jersey’s largest-ever budget late Sunday, narrowly meeting the July 1 deadline. The $58.8 billion spending plan increases funding for schools, transit, and housing—but has sparked intense criticism from both progressive allies and fiscal watchdogs.

Record Spending, Shrinking Surplus

The budget draws down much of the state's once-massive surplus, reducing it from nearly $10 billion to $6.7 billion. While technically balanced, the plan includes a $1.5 billion structural deficit, meaning ongoing expenses outpace recurring revenues.

Controversial Use of Opioid Funds

One of the most criticized moves was the diversion of $45 million in opioid settlement funds—originally earmarked for addiction treatment—to hospital systems. Acting Comptroller Kevin Walsh and Attorney General Matt Platkin publicly condemned the decision, calling it a betrayal of the settlement’s purpose.

Cuts to Clean Energy, Friction with Unions

Environmental advocates were alarmed by the $190 million cut to the Clean Energy Fund, which supports solar and EV incentives. Meanwhile, public-sector unions blasted a budget mandate requiring $100 million in health insurance savings, a move seen as undercutting worker benefits without negotiation.

“This budget doesn’t reflect the values the governor claims to champion,” said NJEA President Sean Spiller.

What’s Funded

Despite the backlash, the budget includes several high-profile investments:

• $12 billion for K–12 public education

• $2 billion in property tax relief via ANCHOR and StayNJ

• $900 million for NJ Transit improvements

• $100 million for affordable housing and development

• Expanded funding for mental health care and social services

Governor Murphy defended the plan, calling it “fiscally responsible and people-focused,” while acknowledging difficult trade-offs. 💬 Do you think Governor Murphy made the right call signing this $58.8B budget? Why or why not?