Capitol Update: Budget Showdown, Tax Incentives & More
June 27th, 2019
Gov. Murphy plans to hold a press conference this Sunday June 30 at 2 p.m. in Trenton where he will most likely announce plans to line item veto the budget that the Legislature approved. This may prompt the Legislature to reconvene and possibly override Gov. Murphy’s veto. Murphy can remove expenditures with a line item veto but he cannot add any new revenue sources.
The Legislature’s budget adds nearly $142 million more in expenditures than the budget Gov. Murphy proposed. It also does not include the millionaires tax Murphy proposed nor a tax on opioid manufacturers or the social corporate responsibility tax that would have been levied on companies that don’t provide health insurance.
TAX INCENTIVE PROGRAM
Legislation which would extend the business incentive tax program beyond the June 30 expiration date has been passed by the Legislature. Gov. Murphy has sought an end to these programs in their current incarnation, but Senate President Steve Sweeney, Senator Teresa Ruiz and Assemblywoman Eliana Pintor Marin have been spearheading the effort to delay the sunset of this legislation. Murphy has promised to veto the legislation but both chambers delivered enough votes to override any veto by Gov. Murphy.
CIANJ has been asked to testify before the Senate Select Committee for Economic Growth regarding the impact and importance of these tax incentives.
This legislation, which prohibits employers from requesting an applicant’s previous salary and wages, was opposed by CIANJ. The legislation is now on Gov. Murphy’s desk.
BI-STATE GATEWAY COMMISSION
Now on Gov. Murphy’s desk, A5570/S3918 would create a seven-member commission to oversee the Gateway Project, require each state to pay 50 percent of the combined New Jersey-New York share of the project, provide for legislative oversight, set strict standards of transparency and accountability and provide gubernatorial veto powers over commission actions. These provisions mirror Port Authority legislation and by-laws. The proposed legislation establishes the Gateway Development Commission as a partnership among New Jersey, New York and Amtrak to oversee the planning, funding and construction of the new Hudson River rail tunnels, repair of the existing tunnels, construction of a New York Penn Station South for NJ Transit trains, the construction of the Portal North and Portal South rail bridges, replacement of the Sawtooth rail bridge, the addition of two more Northeast Corridor rail tracks between Newark and Secaucus, and construction of the Bergen Loop to enable one-seat rides on all NJ Transit trains to Manhattan.
Following approval from the Assembly, S-3682/A-5293 which makes various changes to laws governing site remediation and contaminated site cleanup, has been sent to the Gov. Murphy’s desk. CIANJ has monitored the progress of this legislation. You can view the legislation here.
PERSONAL INJURY PROTECTION
This legislation addresses the $15,000 cap that low-cost car insurance policies have on medical expenses that result from an accident. Standard policies cover up to $250,000 but the lower cost policies have a cap on reimbursable expenses in order to keep premiums lower and affordable. CIANJ and the Insurance Council of New Jersey oppose this legislation as it would lead to higher premiums for all policy holders and would negatively impact the ability of many to afford car insurance in New Jersey.