March 3, 2025 - New Jersey State Policy Updates
New Jersey State Policy Lab
Assisting the state of New Jersey in the design, implementation, and evaluation of state policies and programs.
Public Administration
Governor Murphy Reveals Fiscal Year 2026 Budget Proposal - On February 25th, Governor Phil Murphy presented his final annual budget to the Legislature, proposing a $58.1 billion fiscal year 2026 budget. The spending plan proposes maintaining full funding for pension payments?and increasing allocations for K-12 school aid and property tax relief, including the Stay NJ program. The plan calls for extending the state sales tax to previously exempt items, raising online gambling and property sales taxes for homes valued over $1 million, increasing excise taxes on cannabis, alcohol, and tobacco, and introducing a 40-cent monthly phone bill fee to fund a mental health service hotline. The plan also reduces higher education funding by around 5.5% and withdraws $250 million from the state’s debt reduction fund to support anticipated spending. The proposal projects a $6.3 billion surplus for fiscal year 2026. Governor Murphy expressed some concern over potential shifts in federal aid, with the state expected to receive $27.9 billion in federal dollars for the upcoming fiscal year.
Lawmakers Approve Bill Requiring Ballot Redesign - On February 27th, the Assembly approved Bill A5116 by a 66-6 vote, which would require primary election ballots to use an office-block design instead of the county line format, which a federal judge ruled unconstitutional in March 2024. This follows a 35-2 Senate vote on February 25th, with the bill now heading to the governor’s desk for signature. Supporters of the measure contended that it ensures compliance with the court ruling and eliminates the county-line advantage. However, critics, including the Good Government Coalition of New Jersey, expressed concerns that recent amendments, particularly labeling candidates based on their ballot position, could create unfair advantages.
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Economics
Assembly Approves Bill Banning Sports Wagering Partnerships with Public Colleges and Universities - On February 27th, the Assembly unanimously approved Bill A4113, which would bar sports gambling companies from advertising or partnering with public colleges and universities, with limited exceptions. Proponents of the measure, including The Better You Institute , argued that limiting gambling exposure is necessary to curb addiction and mental health risks among students and young adults. Some advocates called for expanding the ban to private colleges and universities for greater impact. 10% of men aged 18-30 exhibited signs of problem gambling behaviors, and since the state legalized sports betting in 2018, the number of calls to the state’s gambling helpline has increased by 277%.