New Jersey Strong news – Trenton, NJ: Office of the Governor reports 9.01.2020.

Governor Phil Murphy today signed Executive Order No. 183, which establishes rules for the resumption of indoor dining on Friday, September 4 at 6:00 a.m., provided businesses comply with the health and safety standards issued by the Department of Health. The Governor’s Executive Order also contains requirements for movie theaters and other indoor entertainment businesses, where the number of patrons for a performance will be limited to 25 percent capacity, up to a maximum of 150 people.  The Governor’s Order also increases the limits for indoor gatherings that are religious services or celebrations, political activities, wedding ceremonies, funerals, or memorial services to 25 percent capacity with a maximum of 150 people, an increase from the current limit of 25 percent capacity with a maximum of 100 people. Other indoor gatherings, including house parties, remain at the limit of 25 percent capacity with a maximum of 25 people.

“Given the progress we continue to see statewide, and with the proper precautions and limitations in place, I am proud that we can take this step today to allow our restaurants to once again welcome patrons back for indoor dining services,” said Governor Murphy. “Our job now is to ensure that this resumption only leads to future expansions of indoor capacity limits, and that we do not have to take a step backward.”

“Sitting at a table inside a favorite restaurant and enjoying a good meal with family and friends has been a shared missed experience for New Jerseyans,” said Health Commissioner Judith Persichilli. “The measures outlined in this directive will help ensure that restaurant-goers and staff alike remain healthy and protected from the spread of COVID-19.”

“We are excited to see the announcement allowing the start of indoor dining,” said Marilou Halvorsen, President of the New Jersey Restaurant & Hospitality Association. “This has been a long road and I appreciate the Governor and his team communicating with the association and members of the industry.  The industry is ready for a safe reopening and getting New Jerseyans back to work. We look forward to the next phase.”  

Under the Department of Health’s Health and Safety Standards, food or beverage establishments offering in-person service must adhere to the following protocols, among others:

  1. Limit the number of patrons in indoor areas to 25 percent of the food or beverage establishment’s indoor capacity, excluding the food or beverage establishment’s employees;
  2. Limit seating to a maximum of eight (8) customers per table (unless they are from a family from the same household) and arrange seating to achieve a minimum distance of six feet (6 ft) between parties;
  3. Require customers to only consume food or beverages while seated;
  4. Require patrons to wear face coverings while inside the indoor premises of the food or beverage establishment, except when eating or drinking at their table;
  5. Food or beverage establishments with table service must require that customers be seated in order to place orders;
  6. Food or beverage establishments with table service must require that wait staff bring food or beverages to seated customers; and
  7. Keep doors and windows open where possible and utilize fans to improve ventilation.  

The Governor’s Executive Order includes requirements for theaters and indoor performance venues to reopen to the public on Friday, September 4, which include: 

  1. Any particular showing is limited to 25 percent capacity with a maximum of 150 people;
  2. Groups that buy tickets together can sit together, but must be at least 6 feet apart from all other groups; and
  3. Individuals must wear masks, unless they are removing them to eat or drink concessions.

For a copy of Executive Order No. 183, please click here.

For a copy of the Department of Health Executive Directive, please click here.

For a copy of the Department of Health’s Health and Safety Standards for Indoor Dining in Restaurants, please click here.



Governor Murphy Unveils Revised Fiscal Year 2021 Budget Proposal: “Stronger, Fairer, and More Resilient: Building New Jersey’s Post-COVID Future”

Governor delivers his revised Fiscal Year 2021 Budget Address at SHI stadium in Rutgers University on Tuesday, August 25, 2020 (Edwin J. Torres/Governor’s Office).

08/25/2020. Governor’s Budget Proposes that the Wealthiest Among Us – Millionaires and Large Corporations – Pay Their Fair Share in Taxes.

TRENTON – Governor Phil Murphy today released his revised budget proposal for Fiscal Year 2021 (FY 2021), including targeted cuts across State government, fair and equitable revenue raisers, an emergency borrowing proposal, and additional plans to invest federal funding received to date to help close what would have been a nearly $6 billion budget hole as a result of the COVID-19 pandemic.
 
“Besides setting off an unprecedented public health crisis, the COVID-19 pandemic also unleashed an economic crisis that can only be rivaled by two other times in our state’s entire 244-year history – the Great Depression and the Civil War,” said Governor Murphy. “Over the past few months, we have learned hard lessons, but also important lessons: that the old answers won’t fix the new problems and that the old status quo didn’t work for too many New Jerseyans.  We must now have the unavoidable conversation about what it means to not only see our state through this emergency, but what we will look like when we emerge from it.”
 
“This budget proposal is not simply about getting New Jersey back to where it used to be, but moving forward to where we need to be by building a new economy that grows our middle class and works for every single family, while asking the wealthiest among us to pay their fair share in taxes,” said Governor Murphy.
 
The revised budget was proposed six months to the day after the Governor originally laid out his FY 2021 budget proposal.  Since then, COVID-19 has ravaged New Jersey from both a public health and an economic standpoint, prompting the State to move important April tax filing deadlines to July and extend the fiscal year from the traditional June 30th ending to September 30th.   As a result, the revised budget unveiled today addresses spending for only the nine-month period from October 1, 2020 through June 30, 2021.
 
For the traditional 12-month fiscal year, decreased revenue collections left the state facing a $5.7 billion shortfall over what was projected during the Governor’s Budget Message (GBM) in February.  The Governor’s proposed budget relies on a series of solutions to help close this gap and protect many shared priorities.
 
As a result, the Governor’s revised budget overwhelmingly preserves many core state programs:

  • It does not cut K-12 aid, post-secondary tuition assistance, or operating aid for senior public colleges and universities;
  • It restores funding for the Homestead Benefit and Senior Freeze property tax relief programs and does not decrease core municipal aid; and
  • It does not impose new burdens on Medicaid recipients or curb the Child and Dependent Care Tax Credit (CDCTC). 

The Covid-19 pandemic has disproportionately impacted low income communities and communities of color.  The Governor’s budget recognizes those impacts and protects core programs to aid those communities in their recovery.  The revised budget proposal also includes targeted growth to address long-standing disparities and ensure that the recovery includes all New Jerseyans.  
 
Notably, the budget includes a new proposal – advanced at the federal level by Senator Cory Booker and prominent economists – to launch a statewide Baby Bonds initiative, which will provide a $1,000 deposit for the approximately 72,000 babies born in 2021 into families whose income is less than 500 percent of the Federal Poverty Level, or $131,000 for a family of four. When these residents turn 18, they can withdraw these funds to help them pursue higher education, buy a home, start a business, or pursue other wealth-generating activities. This will assist three of four children born in New Jersey. 
 
In addition, the budget invests $60 million into the Clean Water and Drinking Water programs to ensure safe and modern water infrastructure statewide, and increases the Earned Income Tax Credit (EITC) to 40 percent while proposing to expand EITC eligibility to assist tens of thousands more young adults.
The budget also includes a nearly $4.9 billion contribution to bolster the state pension system, which equals 80 percent of the Actuarially Determined Contribution (ADC) and represents the largest percentage of the ADC contributed in 25 years.  Additionally, it includes a robust $2.2 billion surplus, which represents 5.59 percent of appropriations over the 12-month period.  The Governor is committed to maintaining this surplus to address the very real possibility of another shutdown due to a resurgence of the novel coronavirus. 
 
The Administration was able to protect these priorities, in part, by tightening state spending while making sure budget cuts were targeted, and not draconian in nature, in order to avoid the same pitfalls that stymied recovery during the Great Recession.  Governor Murphy’s revised budget proposal includes $1.25 billion in spending reductions and solutions across all executive state departments, including: Medicaid solutions proposed by DHS totaling $336 million; DOC’s inmate population management initiative and other reductions totaling $59 million; and $66 million in solutions proposed by DCF, which will help fund the increased investment in the Children’s System of Care. 
 
In order to curtail painful budget cuts, and limit the size of emergency borrowing, the Governor is also proposing a selection of progressive tax policy changes that are estimated to yield just over a billion dollars for the nine-month FY 2021 period, including:

  • Imposing the millionaire’s tax on all income above $1 million;
  • Permanently incorporating the 2.5 percent corporation surcharge;
  • Restoring the sales tax on limousines; 
  • Removing the tax cap on boats; and
  • Applying a 5 percent surcharge to high-income individuals with federally Qualified Business Income (QBI) who have benefited from a regressive new deduction for pass-through entities created under the 2017 federal Tax Cuts and Jobs Act. 

The Governor remains committed to tax fairness, and ensuring that most fortunate among us—millionaires and large corporations—pay their fair share.
 
The Governor’s revised budget also proposes to borrow $4 billion to help address the massive economic fallout created by COVID-19 and better position the State to weather any future public health and economic uncertainties.  The proposed borrowing amount must first be approved by the legislative Select Commission on Emergency COVID-19 Borrowing.
 
Additionally, the Governor’s revised budget proposal details the major recovery efforts the Administration has launched using a combination of federal and State funds. 

Additional details on spending plans for the full $2.39 billion in CRF funding, as well as the other components of the Governor’s revised FY 2021 budget proposal, may be found online here.
 
One-page summary of the Governor’s budget proposal:

Total Appropriations: $40.070 billion | Projected Surplus: $2.239 billion | Total Revenues: $36.4 billion Reductions and State Savings: $1.25 billion Moving New Jersey Forward Besides setting off an unprecedented public health crisis, COVID-19 unleashed an economic crisis that can only be rivaled by two other times in our state’s entire 244-year history – the Great Depression and the Civil War. Governor Murphy’s budget is not simply about getting New Jersey back to where it used to be, but moving forward to where we need to be by building a new economy that grows our middle class and works for every single family, while asking the wealthiest among us to pay their fair share in taxes. Unprecedented Challenges The revised budget was proposed six months to the day after the Governor originally laid out his FY 2021 budget proposal. Since then, COVID-19 has ravaged New Jersey from both a public health and an economic standpoint, prompting the State to move important April tax filing deadlines to July and extend the fiscal year from the traditional June 30th ending to September 30th. As a result, the revised budget unveiled today addresses spending for only the nine-month period from October 1, 2020 through June 30, 2021. • New Jersey’s unemployment rate surged to a high of 16.8% in June, well above the Great Recession peak of 9.8%. • Revenue collections took a massive hit as well, leaving the State facing a $5.7 billion shortfall over what was projected during the Governor’s Budget Message (GBM) in February. Solutions to Close the Budget Gap The Governor’s proposed budget relies on a series of solutions to help close this gap and protect many shared priorities. Governor Murphy’s revised budget proposal includes $1.25 billion in spending reductions and solutions across all executive State departments, including: Medicaid solutions proposed by DHS totaling $336 million; DOC’s inmate population management initiative and other reductions totaling $59 million; and $66 million in solutions proposed by DCF, which will help fund the increased investment in the Children’s System of Care. In order to curtail painful budget cuts, and limit the size of emergency borrowing, the Governor is also proposing a selection of progressive tax policy changes that are estimated to yield just over a billion dollars for the nine-month FY 2021 period, including: • Imposing the millionaires tax on all income above $1 million; • Permanently incorporating the 2.5 percent corporation surcharge; • Restoring the sales tax on limousines; • Removing the tax cap on boats; and • Applying a 5 percent surcharge to high-income individuals with federally Qualified Business Income (QBI) who have benefited from a regressive new deduction for pass-through entities created under the 2017 federal Tax Cuts and Jobs Act. Core Programs Preserved The Governor’s revised budget overwhelmingly preserves many core State programs. • It does not cut K-12 aid, post-secondary tuition assistance, or operating aid for senior public colleges and universities. • It restores funding for the Homestead Benefit and Senior Freeze property tax relief programs and does not decrease core municipal aid. • It does not impose new burdens on Medicaid recipients or curb the Child and Dependent Care Tax Credit (CDCTC). Governor Murphy’s Revised FY 2021 Budget-at-a-Glance “Stronger, Fairer, and More Resilient: Building New Jersey’s Post-COVID Future” Governor Murphy’s Revised FY 2021 Budget-at-a-Glance “Stronger, Fairer, and More Resilient: Building New Jersey’s Post-COVID Future” Fair and Equitable Recovery The Covid-19 pandemic has disproportionately impacted low income communities and communities of color. The Governor’s budget recognizes those impacts and protects core programs to aid those communities in their recovery. The revised budget proposal also includes targeted growth to address long-standing disparities and ensure that the recovery includes all New Jerseyans. The budget: • Launches a statewide Baby Bonds initiative, which will provide a $1,000 deposit for the approximately 72,000 babies born in 2021 into families whose income is less than 500 percent of the Federal Poverty Level, or $131,000 for a family of four. When these residents turn 18, they can withdraw these funds to help them pursue higher education, buy a home, start a business, or pursue other wealth-generating activities, which will assist three of four children born in New Jersey; • Invests $60 million into the Clean Water and Drinking Water programs to ensure safe and modern water infrastructure statewide; • Increases the Earned Income Tax Credit (EITC) to 40 percent and proposes increasing EITC eligibility to assist tens of thousands more young adults. Fiscal Responsibility • The budget includes a nearly $4.9 billion contribution to bolster the state pension system, which equals 80 percent of the Actuarially Determined Contribution (ADC) and represents the largest percentage of the ADC contributed in 25 years. • The Budget includes a robust $2.2 billion surplus, which represents 5.6 percent of appropriations over the 12-month period. The Governor is committed to maintaining this surplus to address the very real possibility of another shutdown due to a resurgence of the novel coronavirus. Necessary Borrowing The Governor’s revised budget also proposes to borrow $4 billion to help address the massive economic fallout created by COVID-19 and better position the state to weather any future health and economic uncertainties. The proposed borrowing amount must first be approved by the legislative Select Commission on Emergency COVID-19 Borrowing. Major Recovery Efforts The revised budget proposal details the major recovery efforts the administration has launched using a combination of federal and state funds, which impacts numerous areas, including K-12 education, higher education, health care, social services, local government, economic development, and housing. The proposal includes additional details on spending plans for the full $2.39 billion in CRF funding.