Testa: Demonstrating Fiscal Discipline in State Spending Would Send Important Signal to Washington

Senator Michael Testa (R-1) said it is imperative that the Murphy Administration demonstrate that New Jersey is taking responsible budgetary measures to account for plunging revenues as it looks to Washington for additional financial relief.

“The economic shutdown due to COVID-19 has caused unimaginable harm to New Jersey workers, families, and small businesses,” said Testa, a member of the Senate Budget & Appropriations Committee. “I’m concerned, however, that Governor Murphy’s pleas for extra federal aid will fall on deaf ears in Washington if he isn’t able to demonstrate concrete steps taken in Trenton to adjust State spending in response to steep revenue declines.”

While New Jersey has been awarded assistance through prior federal relief measures, including a $3.4 billion block grant, the funding has been assigned to specific purposes or limited to COVID-19 response efforts.

None of the funds approved to date can be used to support spending in prior budgets or future spending unrelated to the current crisis.

“It’s shocking that Governor Murphy hasn’t proposed cutting a single cent from the massive spending increases he proposed in February before the coronavirus crisis decimated State revenues,” added Testa. “New Jersey must able to show that our request for federal aid is a last resort after everything possible was done at the state level. The governor simply hasn’t done that yet.”