New Jersey committees advance budget with $4.5B in borrowing

A revised $34.7 billion state budget was approved by the New Jersey Assembly Budget Committee and the Senate Budget and Appropriations Committee over the objection of business groups and Republicans who questioned a borrowing plan from the federal government and an expected surplus.

The revised budget was released late Monday evening and includes borrowing $500 million more from the federal government than the $4 billion proposed by Gov. Phil Murphy. The committees approved a millionaire’s tax that increases the tax rate for any income amount over $1 million from 8.97% to 10.75%. Corporations that make more than $1 million will pay an additional 2.5% surcharge until Dec. 31, 2023.