Governor Phil Murphy signed a record-setting $56.6 billion annual state spending bill on June 28th after the Legislature approved it in votes divided largely along party lines. The budget, the largest in New Jersey's history, calls for the state to spend $2.1 billion more than it takes in. This new budget represents an increase of more than $20 billion over seven years.
Legislative bills deemed detrimental to small businesses were not sent to Governor Murphy in June due to advocacy efforts by the National Federation of Independent Business (NFIB). A Captive Audience bill that would deny employers the right to freely engage in open speech with their employees was held from floor votes. Additionally, a Heat Stress bill that would require every business to adopt a heat stress plan was also put on hold. Under this bill, the Department of Labor would have been able to levy steep fines, issue stop-work orders, and order business shutdowns.
As part of the budget deal, legislators and the governor agreed to enact a 2.5% surtax on corporations with more than $10 million in profits. This tax on roughly 600 businesses operating in New Jersey is expected to generate about $800 million annually and is forecasted to bring in more than $1 billion in the fiscal year that began July 1st. It will retroactively apply to the first six months of 2024.
