Sussex County Freeholders Criticize Governor’s Budget Announcement

(Newton, NJ) Members of Sussex County’s Board of Chosen Freeholders expressed disapproval Thursday of Governor Phil Murphy’s $32.4 billion budget announcement on Tuesday, with a proposed budget that includes an additional $4 billion in borrowed funds, multiple tax increases and “baby bonds,” a program to provide $1,000 to each New Jersey baby born to lower income families beginning in 2021 – estimated at 72,000 births annually – which will be invested and then accessible when each child turns 18.

The controversial highlights in Murphy’s budget that adds in $1.1 billion in new fees and taxes, includes raising the millionaires tax rate on incomes over $1 million to 10.75 percent, from 8.97 percent on $5 million; to freezing the corporate business tax, which was expected to drop this year from 2.5 to 1.5 percent; to imposing an increase on the cigarette tax to $4.35 per pack; to escalating firearm and ammunition sales taxes and fees; to reversing the tax and cap for sales transactions on new and used boats and yachts; to reinstating the limousine services sales tax; and to raising the HMO assessment from 3 to 5 percent.

“I often sound like a broken record preaching about fiscal responsibility, but this budget is exactly why,” said Freeholder Joshua Hertzberg. “The numbers that he’s (Murphy) talking about are scary; and the devastating effects of this budget will be felt for decades to come.”
After New Jersey’s Supreme Court gave Murphy its blessing in early August to borrow $9.9 billion to plug what he perceived as budget shortfalls of claimed losses from the pandemic, Murphy’s proposed budget suggests borrowing another $4 billion in bonds, with those borrowing sources not yet announced.

“He’s (Murphy’s) borrowing $4 billion on top of the $9.9 billion, who’s going to pay for that?” Freeholder Herbert Yardley asked. “What’s his plan? There’s not a clear plan.”
Yardley had grave concerns with the luxury taxes slated for reimposition on boats and yachts, with the potential in Sussex County, known for its recreational boating on the many lakes including state-owned Lake Hopatcong, that it could deter residents from not only purchasing boats, but from patronizing marinas, visiting the region’s parks by boat and driving their boats to dine at Sussex County restaurants with boat access.

The proposed taxes for boat purchases, along with the increase in ammunitions taxes and combined with the Governor’s resistance to reopen indoor dining, has Yardley also troubled that New Jersey residents will instead patronize businesses in neighboring states.

“It’s forcing people to do business in other places,” Yardley said. “Industry in New Jersey needs help. If we don’t get businesses opening back up, New Jersey can’t survive. The more you tax, the less you get. The Governor is following what California has done and eventually, we will be unable to sustain the state. It’s really socialism to continue to tax everything.”

Hertzberg echoed Yardley’s comparisons of Murphy operating New Jersey similar to California and said, “In the race to the bottom, we may have just edged out California by a nose. Both states are experiencing record mass exoduses as the borrow and spend culture, all but assures our financial ruin. Our children’s futures have been sold for political gain. Everyone should be furious.”

As a society, Yardley said residents should have the ability to get back out to experience life as normally as they can, which includes allowing businesses to fully reopen. Sussex County has lowered the COVID rate to one of the state’s lowest. In return for the diligence in fighting the pandemic, Murphy has ignored correspondence pleading for CARES funding for Sussex County, with funding finally secured this month after the County has fronted more than $690,000 in expenses to fight COVID-19. Yardley suggests Murphy also sit down with Chamber of Commerce organizations statewide, to discuss a reopening plan.

The Governor additionally ignored such a plan, submitted jointly by Freeholders in Sussex, Warren and Hunterdon Counties.