Murphy’s Budget-Plan Balancing Act: Continued Growth or Coming Slowdown?

February 27, 2023 | njspotlightnews.org

Gov. Phil Murphy is set to unveil his latest fiscal plan for New Jersey during an in-person public address before a Legislature gearing up for an election later this year.

In addition to the political backdrop, the latest gubernatorial budget message is coming when tax collections have generally been outperforming year-end growth targets, but also as many economists foresee more difficult days ahead.

Among the key challenges Murphy faces is forecasting just how much of the state’s revenue stream would be impacted if the economy begins to slow down over the next 12 months.

NJ SEED: Under the current budget the state is spending $51 billion. A turndown in the economy, as many predict, could cause a serious drain on reserves and impact future budgets. The Murphy Administration’s spending plan that will begin on July 1st will likely be a solid election- year budget.