Budget negotiations between the governor and the Legislature broke down Friday afternoon, making it unlikely that the state budget impasse will be resolved before the July 1 deadline.

Despite a full day of negotiations, Gov. Phil Murphy, Senate President Stephen Sweeney and Assembly Speaker Craig Coughlin were unable to come to an agreement over which taxes to raise. The two sides largely agree on the spending plan, just not how to pay for it.

NJBIA President and CEO Michele N. Siekerka said it was disappointing that the two sides are only considering tax increases.

“NJBIA is extremely disappointed to learn that the budget negotiations that broke down today between the governor and the legislative leaders apparently centered on what taxes to increase, instead of what spending to cut. We need to fix the State’s structural budget deficits, such as our public pension, health benefits and education costs, rather than attempt to tax out way of our challenges.

“Proposals such as a millionaires tax and CBT surcharge try to balance the budget on the backs of job-creators. Corporations have 50 states to choose from. We need to make New Jersey more attractive to retain our businesses and capture the investment of new ones so we can gain in our regional competitiveness. Having the highest corporate business tax in the nation, in addition to the already high costs of doing business in New Jersey, will not put us on that path.”

At this point, Governor Murphy essentially has four options.

  • He can conditionally veto the bills and send them back to the Legislature with the changes he wants.
  • He can issue an absolute veto, rejecting them entirely.
  • He can do nothing and continue to negotiate as the government shutdown approaches.
  • He can line-item veto the budget so that it is balanced without tax increases and then sign it, avoiding a government shutdown but giving up some spending priorities in the process.

If you have any questions, please contact Chrissy Buteas at cbuteas@njbia.org

4 responses to “No Budget Deal as Compromise Talks Break Down”

  1. Jessica Williams says:

    Cut. Cut. Cut. That’s the only option NJBIA endorses. How about making those who earn, pay their share without escaping taxation through loopholes. I own 2 small businesses and I support increases.

    • John says:

      I also own to small business and a lot of real estate if you don’t think you or paying enough taxes I feel sorry for you there must be something wrong with you I would not want to be doing business with you we pay so many hidden taxes I am just stating to check out Pennsylvania

    • Robert says:

      Remember when NJ income tax was 3%? When is enough enough? Usually, business owners who don’t mind tax increases and vote democrat are getting contract business from the state.

  2. Harold says:

    I truly don’t believe the person who says they support increases. How could that possibly be when this is going to be the highest taxed state in the nation. Possibly, those businesses are not profitable and they do not need to reinvest in them, therefore, they do not pay significant taxes or invest capital. Maybe that individual should consider giving more charity. Also- more regulations which invite needless and costly litigation are now growing at an alarming rate. Not healthy for businesses/employers but certainly good for the ambulance chasers.