Governor of New Jersey. Phil Murphy signed a record $50.6 billion budget for the Garden State on Thursday that included provisions to help alleviate the nation’s highest property taxes, help people buy school supplies and provide a school credit. child tax.
Here’s how the massive budget will affect New Jersey residents.
READ MORE: Murphy signs $50.6 billion budget in New Jersey with property tax relief
The budget includes $12.8 billion in direct aid to New Jersey public schools. This includes nearly $2 billion for new school construction through the Schools Development Authority, as well as other capital needs and maintenance.
Most of the money is earmarked for Schools Development Authority districts. The authority is the state agency responsible for managing and funding construction and renovation projects in 31 public school districts across the state, including nine in South Jersey.
The budget provides a sales tax holiday on school supplies in late August and early September. From August 27 to September 5 in physical stores and online, people who buy school supplies will benefit from a sales tax reduction of 6.625%, in an effort to reduce back-to-school costs.
There is $3 billion allocated in the budget for capital spending, including building schools, new roads and other transit projects in New Jersey.
NJ Transit, the state-owned public transportation system, will receive an additional $40 million from US bailout funds.
Some of the major transit projects funded include over $72 million to improve the Northeast Corridor train line and $250 million to improve the Walter Rand Transportation Center in Camden.
New Jersey — with an average annual tax burden of $9,300 — has the highest property taxes in the country, and residents have long been asking for relief.
To help defray costs, this year’s budget includes a property tax credit for homeowners and a rebate for renters.
Some 870,000 families earning up to $150,000 a year would get “direct assistance” of $1,500; those earning between $150,000 and $250,000 will receive $1,000 in credits and, for the first time ever, tenants will also receive assistance.
Tenants winning up to $150,000 will receive $450 in assistance. The program has a price tag of $2 billion and will help about 2 million households.
The budget includes a tax credit of $500 per child for low-income residents, which gradually increases to $100 when income reaches $80,000 a year.
Households with an income of $80,000 or less would get the credit for each child under age 6. Households with an income of $30,000 or less would get a credit of $500 for each child.
The credit is reduced by $10 for every $1,000 of income over $30,000.
The state Department of Law and Public Safety, which includes the New Jersey State Police, will receive more than $70.4 million in this year’s budget.
The state’s $28 marriage license fee and a number of motor vehicle fees will be suspended, on budget.
The spending plan also projects a $6.3 billion surplus, which Senate Budget Committee Chairman Paul Sarlo said was the largest in state history.
The Associated Press contributed to this article.