Inside New Jersey’s $58.8 Billion Spending Plan and What It Means for Our Community

 

By Isaac Shadpour

 

It’s the largest budget in New Jersey history—a staggering $58.8 billion—and while the headlines are focused on taxes on “mansions,” sports betting, and vaping, the real story is in the

quiet victories that will make a big difference in the daily lives of tens of thousands of families, particularly in the state’s frum communities.

 

                                                                                                                                                                                                                                               

                                                                                                                                                                                                                                                                                             Governor Phil Murphy

 

 

Behind those wins is the tireless advocacy of individuals like Shlomo Schorr, director of legislative affairs for Agudath Israel’s New Jersey office, who spoke with us about how this budget,despite its complexity and politics, brought meaningful support where it matters most: our schools, our children’s health, and many other areas.       

 

                                                

 

Governor Phil Murphy had originally proposed a $58 billion budget, but the legislature—with its own set of priorities and reelection concerns—tacked on nearly $800 million more. That’s par for the course in Trenton, where the governor proposes, but it’s the legislature that disposes.

                                                                                                                                                                                                                                                                                                             Assemblyman Avi Schnall

 

 

“In a year when many sectors—including some of the most powerful unions—faced painful cuts,” Schorr explains, “our community walked away with flat funding across the board and key increases in critical areas.” In fact, unions saw over $100 million slashed from their benefit programs. “We’re not coming in with tens of thousands of votes like the unions, yet thanks to focused, persistent advocacy and our coalition efforts, we were successful.”

 

The total budgetary benefit for non-public schools reached roughly $150 million, a $5.2 million increase over last year. That may not sound dramatic, but in government budgeting, avoiding cuts is a victory in itself—especially when inflation is eating away at purchasing power and student enrollment continues to grow.

 

Among the areas that saw meaningful gains for our community, school nursing services received a notable boost—increasing from $130 to $145 per student, a 12% jump

totaling $2.5 million statewide.                                                                                                                                                                                                                                                                     

Shlomo Schorr,

director of legislative affairs for Agudath Israel’s New Jersey office

 

 

“This isn’t theoretical money,” Schorr stresses. “These funds go directly to nurses, EpiPens, medical supplies—even basics like tissues and toilet paper.”

For Lakewood alone, which will educate nearly 60,000 non-public school students next year, that adds up fast.

 

The state’s Chapter 192 auxiliary services program, which funds English as a second language, kriah, and other support services, was also increased. Per-student allocations will rise from approximately $1,070 to $1,146, with ESL funding going from $1,090 to $1,168—a $2.6 million total gain.

 

On top of this, $10 million was again allocated for nonprofit security grants—vital in an era where Jewish institutions continue to face real threats.

 

Securing these funds wasn’t just a matter of asking nicely. It took coordination across multiple fronts—first with the governor’s office to avoid cuts during the early drafting phase, and then with legislative leaders to push for increases.

                                                                                                                                                                                                                                                                                                                      Meilech Esterzohn, CEO of Hatzolah of Central New Jersey

 

 

“Governor Murphy, who’s term limited and not facing reelection, had the luxury of thinking long-term,” Schorr said. “But Assembly members—all of whom are on the ballot this fall—were laser focused on delivering results to their districts. That divergence gave us room to work both sides.”

 

Assemblyman Avi Schnall played a key role in the process, bringing back significant funding to local organizations and helping to elevate the broader needs of the Orthodox community within the budget process.

 

Schnall secured a $400,000 grant for a new ambulance for Hatzolah of Central Jersey and an $8 million Medicaid expansion to cover certain costs for people undergoing infertility treatments, like blood tests, X-rays, and doctor’s visits (though not IVF).

 

Hatzolah of Central Jersey CEO Meilech Esterzohn told The Voice that the grant secured by Schnall will be used for an ambulance in Howell, “as we are recognizing and addressing the growth of that community in Howell. We are very grateful for Avi’s tireless efforts, and this grant will quite simply help us save lives.”

 

While school funding remained the top concern for many in the community, the 2026 budget includes several notable tax shifts.

 

The so-called “mansion tax” didn’t create a new fee—it expanded the existing one. The tax still applies at 1% for homes sold between $1 million and $2 million, but it now increases incrementally for more expensive properties, rising to 2% for homes between $2 million and $2.5 million, then adding another 0.5% for every additional $500,000 in sale price, up to a maximum of 3.5% for properties worth over $3.5 million. One of the more impactful changes is a shift in who pays the tax—whereas it was previously the buyer’s responsibility, the burden now falls on the seller. This adjustment may offer modest relief for families trying to purchase homes in a high-cost market.

 

Other tax hikes target less sympathetic products: cigarettes and vaping cartridges. The cigarette tax will rise from $2.70 to $3.00 per pack, and vaping liquid will see a tripled tax from 10 to 30 cents per cartridge—moves expected to bring in $50 million in additional revenue, according to state estimates.

 

Online gambling and sports betting—booming industries in New Jersey—will also see increased taxation.

 

While the budget totals $58.8 billion, expected revenues come in at only $57 billion, leaving a $1.8 billion hole. How is it being filled? With surplus funds—not from newfound wealth, but leftover federal covid relief and previous year surpluses.

 

“It’s not a surplus in the classic sense,” Schorr explains. “It’s like saying you got a one-time bonus three years ago and you’re still living off of it. That’s not sustainable.”

 

The state currently holds about $6 billion in surplus—largely leftover federal covid-relief funds—but with expenses outpacing revenues by $1.5 billion this year, that cushion is quickly being used up. If spending trends continue, Schorr warns, the surplus will shrink fast, leaving future administrations with tough decisions.

 

When former Governor Chris Christie left office, New Jersey’s budget was around $35.5 billion. In just eight years, it has ballooned by more than 65%. Why? Schorr points to three major factors: fully funding the state’s education formula, paying down pension obligations, and aggressively repaying debt. Inflation hasn’t helped either.

 

With a gubernatorial election looming in 2025, Schorr reminds us: “Even if the next governor comes in with plans to cut waste, the legislature still holds the purse strings. That’s the reality of New Jersey politics.”