TRENTON, N.J. – Assembly Republican Leader John DiMaio and Conference Leader Christopher DePhillips have voiced strong opposition to the proposed tax and fare increases ahead of Governor Phil Murphy’s seventh budget message. With New Jersey facing a budget deficit that may rise from $1.5 billion to $2 billion this year, alongside shrinking tax revenue, inflation, and a decrease in federal aid, the state’s Democrats are considering hikes on taxes and fares affecting taxpayers, businesses, and commuters.
DiMaio criticized the substantial spending increases over the past six budget cycles, amounting to $20 billion, which he believes will significantly impact the state budget. In an effort to address budget gaps, NJ Transit has announced a 15% fare increase starting July 1, and there are discussions within the Murphy administration and among Democrats about raising sales, corporate business, and gas taxes.
DePhillips condemned the state’s fiscal management, emphasizing a need for spending cuts rather than tax increases, which he described as “completely unconscionable.” He stressed that New Jersey residents are seeking relief from high costs, not additional financial burdens.
The state budget has swelled from $34.6 billion in 2018 to $54.3 billion today, with Democrats adding $1.5 billion to the last spending plan for special projects. The GOP leaders argue that excessive spending is making New Jersey unaffordable for many families and pledge to advocate for more affordable policies for state residents.