Sherrill’s $60B budget ignites GOP fury over cuts to senior property tax relief

🔴 Gov. Mikie Sherrill proposes a $60.7B budget — nearly $2B more than last year

🔴 Cuts to the Stay NJ property tax relief program would tighten eligibility rules.

🔴 A new Medicaid-related fee on large employers is raising alarms from business leaders across New Jersey.

TRENTON — New Jersey Republicans are slamming Gov. Mikie Sherrill's proposed budget that breaks spending records and makes massive cuts to a popular property tax relief program.

With $1.9 billion more in spending than last year's budget, the new Democratic governor's proposal swells to $60.7 billion. As Sherrill promised, it has no new taxes on individual New Jerseyans. It also offers $4.2 billion in property tax relief.

Yet, Assembly Republican Conference Leader Christopher DePhillips, R-Bergen, said Sherrill's budget does not improve affordability in New Jersey.

“Spending continues to move in the wrong direction — up and up, just like the last eight years. This is more of the same, and nothing, apparently, has changed,” DePhillips said.

Stay NJ property tax relief program faces major funding cut

Sherrill's budget also includes nearly $2 billion in spending cuts. The biggest slash is to the Stay NJ property tax relief program for seniors. State Republicans say it will lose around half a billion dollars in funding.

"The last thing that should be cut is property tax relief, and that's what that is. Instead, it's one of the first things cut by about half a billion dollars. It kills me," said Declan O'Scanlon, R-Monmouth, who serves as the senate minortiy's budget officer.

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Since Stay NJ was announced in June 2023, former Gov. Phil Murphy endlessly touted it as the way to make New Jersey more affordable for seniors. The "historic" program was especially important for people on a fixed income, Murphy said.

The cuts mean that only senior households with incomes up to $250,000 will be eligible for Stay NJ checks. Previously, it was offered for seniors with incomes of up to $500,000 a year. Sherrill says the program will be safeguarded for middle-class seniors.

READ MORE: Sherrill proposes $60.7B NJ budget with property tax relief

AARP New Jersey State Director Chris Widelo urged lawmakers not to cut Stay NJ and other property tax programs.

“The Stay NJ program was created to address New Jersey’s affordability crisis and deliver on a commitment to older residents who want to age in place. As policymakers consider adjustments, it is critical that the program does not reduce the annual benefit and continues to provide meaningful relief while keeping the promise made to the people counting on it," Widelo said.

Businesses warn new Medicaid fee could hit employers

Sherrill's budget also includes a per-employee fee on businesses with more than 50 employees on Medicaid. New Jersey Business & Industry Association Chief Government Affairs Officer Christopher Emigholz said the new Medicaid fee was the most troubling proposal for businesses.

“This establishes a situation where employers can be penalized even if they offer health coverage for their workers, which is already one of the largest expenses they absorb every year.

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