The New Jersey Legislature held a joint session on February 25, 2025, where Governor Phil Murphy presented the budget proposal for the upcoming fiscal year. The meeting focused on the administration's commitment to fiscal responsibility while addressing the needs of New Jersey residents.

Governor Murphy emphasized the importance of making prudent financial decisions to ensure economic security for taxpayers. He highlighted that the proposed budget aims to provide record-high property tax relief and fully fund the public education system. The administration plans to cap new discretionary spending, reflecting a commitment to fiscal restraint in light of the financial challenges faced by working families.

The governor reported a projected surplus of over $6.3 billion, a significant increase from the $400 million surplus inherited when he took office. This surplus is intended to safeguard against unforeseen challenges, particularly in light of uncertainties at the federal level. Murphy noted that this surplus would leave the next governor with a financial cushion more than 15 times greater than what he started with.

Additionally, the governor addressed the need to narrow New Jersey's structural deficit, which represents the gap between state spending and revenue. He acknowledged the economic impact of the pandemic but expressed confidence in the state's recovery, stating that New Jersey's economy is now thriving compared to its regional counterparts. The administration is committed to reducing the structural deficit as part of its long-term financial strategy.

In conclusion, the joint session underscored the administration's focus on balancing fiscal responsibility with essential services for residents, setting the stage for a budget that aims to support New Jersey's economic growth while maintaining financial stability.