Governor Phil Murphy signed New Jersey’s $56.6 billion annual state budget on June 28, following legislative approval largely along party lines. The budget is the largest in the state’s history and plans to spend $2.1 billion more than it takes in, marking an increase of over $20 billion in seven years.
Some legislative bills considered harmful to small businesses were not sent to Governor Murphy, thanks to efforts by NFIB (National Federation of Independent Business). A “Captive Audience” bill that would restrict employers from freely communicating with employees was withheld from floor votes. Additionally, a “Heat Stress” bill requiring all businesses to implement a heat stress plan was also delayed. Under this bill, the Department of Labor could impose fines, stop work orders, and mandate business closures.
As part of the budget agreement, legislators and the governor approved a 2.5% surtax on corporations with profits exceeding $10 million. This tax will affect approximately 600 businesses operating in New Jersey and is projected to generate about $800 million annually. It is expected to bring in more than $1 billion for the fiscal year starting July 1 and will be applied retroactively to the first half of 2024.
