NJ Budget: Key details about where the money comes from, where it goes and what’s next

NJ Spotlight News | June 24, 2021 | Budget
The largest state budget in New Jersey history is set to get final votes Thursday, two days after lawmakers made $46.4 billion plan public
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Here are key details of the 2022 state budget:

How much: Total spending is roughly $46.4 billion.

Where does it come from: Nearly all of the money comes from taxes and fees. The three biggest taxes are the sales tax, which is planned to bring in $11.3 billion, the corporate business tax with $3.7 billion and the income tax, the largest source of revenue at $17.1 billion.

Where does it go: Some of the money goes to pay for state government operations, like the Department of Corrections, which sees about $1.1 billion in this budget, and the Department of Transportation, booked for $1.8 billion. Much goes out in services to residents. And significant sums of money get sent back to towns and school districts in the form of state aid. The Department of Education budget, for example, is about $18 billion, but a significant majority of that money goes to local districts. One of the largest line items is the $6.9 billion payment into the pension fund for public employees. Another $2.5 billion would go to paying down state debt.

What’s new this year: A projected windfall in taxes. That’s now expected to be about $5.2 billion for the budget year that ends this month and the one being voted on this week.

What’s next: Final votes are scheduled for Thursday. Gov. Phil Murphy needs to sign the budget into law before July 1. As governor he has the power to veto items as well.

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