Gothamist
A non-profit newsroom, powered by WNYC.
Gothamist
Listen Live
News
NJ Gov. Murphy: We can get seniors a big tax break and plug NJ Transit's $1B hole
By
Mike Hayes
Published May 9, 2024
Share
FacebookTwitterRedditEmail
Never miss a story
Email address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .
Dave Kotinsky/Getty Images
By
Mike Hayes
Published May 9, 2024
Share
FacebookTwitterRedditEmail
We rely on your support to make local news available to all
Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
Gov. Phil Murphy says he’s confident that he and lawmakers can work out their issues in budget talks — advancing a “landmark” tax relief program for seniors and putting in place the corporate tax he envisions closing NJ Transit’s looming budget hole.
NJ Advance Media reported late last month that a battle is brewing over competing budget spending priorities. Murphy and legislators need to reach a deal on their budget by June 30 to avoid a government shutdown this summer.
Murphy initially opposed the Stay NJ program championed by Assembly Speaker Craig Coughlin before reaching a compromise with legislators last year, ultimately touting the program as important tax relief. Under a bill the governor signed, seniors would be refunded half of their property taxes starting in 2026, with a maximum rebate of $6,500. Individuals or couples who earn more than $500,000 a year are not eligible.
Separately, Murphy has proposed reviving a 2.5% corporate tax surcharge on wealthy corporations as a continuous funding source for NJ Transit, which otherwise projects a billion-dollar deficit starting with the 2025-26 fiscal year.
On WNC’s “Ask Governor Murphy” call-in show Wednesday, host Nancy Solomon asked Murphy about the reported “unhappiness” over the talks — and legislators' apparent concerns that the effort to fund NJ Transit could “take money away from Stay NJ.”
But Murphy said New Jersey can handle both initiatives. He described Stay NJ’s funding as “under discussion” during the current budget negotiations.
“I'm not buying it,” Murphy said. “Having been chair of the National Governors Association of the Democratic Congress, I've seen how budgets are done around the country. We do a really good job.”
The NJ Advance Media report said Coughlin could make his support for the corporate tax contingent on more funding for Stay NJ — which only goes into effect if the state meets several financial benchmarks, including committing 12% of its annual spending as surplus. Some reports have also suggested Coughlin could seek funds from the corporate tax to bolster Stay NJ.
Murphy noted his budget proposal adds $200 million to the $100 million the state set aside in 2023-24 to fund Stay NJ.
“So we're sort of building up, we climb these mountains over several years, so that'll get us to $300 million,” Murphy said.
Murphy has previously said the state would set aside $300 million in the 2025-26 budget, bringing the total costs saved up for the Stay NJ rollout to $600 million.
Murphy also brushed aside a question about whether he’s worried legislators might not ultimately agree to the corporate tax break — potentially setting NJ Transit up for service cuts.
“I won’t get into the specifics, but I feel really good about the relationship that we have with the Senate president and the speaker of the General Assembly in their respective caucuses, and none of this is easy,” Murphy said.
Tagged
new jersey
Politics
Mike Hayes
Mike Hayes covers equity and access to opportunity in New Jersey. He joined WNYC and Gothamist in 2023. Before that, he worked as a freelance journalist writing about policing and criminal justice. He has written for ProPublica, CNN, HuffPost, BuzzFeed News and The Appeal. He is also the author of the book, “The Secret Files: Bill De Blasio, The NYPD, and the Broken Promises of Police Reform.” In 2019, he was a finalist for the Livingston Award for Young Journalists.
Read more
Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
MORE news
Brad Lander says he's released after Israeli forces detained him during olive harvest
IDF attacks during harvest season have drawn international condemnation.
By
Ryan Kost
Published Oct 21, 2026 at 8:24 a.m. ET
Modified Oct 21, 2026 at 9:54 a.m. ET
George Washington Bridge reopens after fatal shooting; no arrests made
A 46-year-old man was shot to death on the bridge Tuesday evening.
By
Ryan Kost
News
George Washington Bridge reopens after fatal shooting; no arrests made
A 46-year-old man was shot to death on the bridge Tuesday evening.
By
Ryan Kost
NYC’s horse carriage drivers feel betrayed as lawmakers set to abolish industry
By
Liam Quigley
Parents grumble as NYC schools chancellor dodges calls for NYC schools integration plan
By
Jessica Gould
Driver found with apparent gunshot wound on George Washington Bridge, officials say
By
Charles Lane
Never miss a story
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Sign upEmail address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .