Power & Politics: Gov. Murphy signs $58.8B budget – the final of his tenure

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House gives final approval to Trump's big tax bill and sends it to him to sign

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Gov. Murphy signs final New Jersey budget with record spending

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Welcome back to Ask Governor Murphy here on News 12 New Jersey. I'm Eric Llanz Garner, Governor, uh, we were talking about your budget address coming up next week. This is going to be your final budget address. Uh, before the break, you said that New Jersey is different than the federal government. You can't deficit spend, but that's definitely you could do it for a couple of years, which we deliberately did to, to jumpstart the economy, to come out of the pandemic, and we, we've come out faster. We, it worked. Top 10 state in America in terms of population moving in. Uh, more people employed right now than ever before in the state, more businesses, uh, operational than ever before in the state, strongest economy in the Northeast, but and the but is you can prime the pump for a couple of years, but you can't do it. Last time it it balanced in Washington, Newt Gingrich and Bill Clinton. That was a contract with America I believe out of that, out of that, yes, uh, given your comment though Wallethub, and I'm curious to know what you think about their recent study here. They ranked New Jersey as one of the worst states in the country for retirees, and you know they base that on, on, on a number, I think it was 46 different factors that were involved in their metrics there, uh, from tax rates, tax rates, cost of living, things like, um, quality medical care as well. Well, I haven't seen the study. They also rank us as the number one state in America to raise a family, by the way, this just not to get into other pesky facts. Uh, so when you're younger, it's great, but when you, I suspect that's affordability and you're gonna see a lot of focus on seniors, property tax. Relief tax relief more broadly affordability listen we we are kidding ourselves right now if you ignore the price of eggs, the price of your utility bill, your insurance bill, how expensive a housing market is, um, again, great news, all these people are moving in, which is is great news that says that whatever you're doing is working, but that puts a strain on a lot of things like housing like NJ Transit. Like school places, it's uh you know, seats in schools and you'll hear a lot about that, um, uh, in my, in my remarks and you'll see a lot of it in the budget. So again, this is a balance. You're trying to be fiscally responsible and I'm not gonna tear my rotator cuff patting myself on the back, but we used to be a AAA bond rated state. We inherited a holy mess that it was building for 25 years. Um, you're trying to stay true to that, but also invest in our kids in the future, in our innovation economy, in our values, and all of this. Hardly you could do that in a bubble these days with what's coming at us from Washington, and I'm going to address that as well in in my remarks. Will certain priorities have to be put on the back burner because of the current fiscal situation and because of the uncertainty, as Senator Scanlon alluded to, that there is some funding that could be in flux from Washington? I don't know whether Declan was kidding or he was serious. I think he was serious. The uncertainty in Washington is. To say it's palpable is, you know, it, it is overwhelming right now. You know, we had all states in America and our, our money's frozen a couple of weeks ago. Thankfully they were unfrozen at least for now, but we had a 1 billion.5 dollars Medicaid payment the next morning, uh, and thank God that that got out there. And yes, I'm gonna say this explicitly in my remarks there are some programs that were either freezing or cutting somewhat that in a perfect world would be growing, uh, but there's very little that is gonna go that's gonna go away. So this is, listen, it's a simple construct for me. Families in our state are dealing with affordability issues and they have to tighten their belt. The state can be no different. We can't make our residents. Go on a diet if you will, and as a state, uh, keep whistling like there's no problems in the world. Budget time comes around and and one of the first questions is, first two questions is what am I going to see in terms of property tax relief? Are there going to be any new taxes added? I'm not again, no, no news to make, but I just mentioned a minute ago, so I will repeat that we're we're gonna have record, uh, tax relief and including property tax relief and there's a new program that's supposed to make it easier for people to, to apply for property tax in particular. So can you talk about what this new website, this new program very simply taking all the various programs we have and putting them in one location. Making it easier for seniors to basically know what's out there and to apply for it, we had committed from day one to make processes more transparent to make government more general generally more transparent, and that's a step in that direction. Uh, you were talking about the cost of living in general and, and, uh, um, for the folks in the booth, uh, we've been getting a lot of questions and calls about, um, electric and utility rates and I mean really. We, we, we, we just saw the, some of those calls myself, yes, so, uh, Linda actually posted on our Facebook page saying this our electric and gas bills are out of control. What are you going to do to get them lower? Rick says, please stop the rate hike for PSENG. We're already getting kicked in the teeth with the insurance and taxes, and he goes on to say we voted for you, we trust you, and it's not getting better. It's another dig our wages are the same. Where do you expect us to get extra money from? And then finally from Lindy. What are you going to do to stop this ridiculous rate hike from PSENG? People will die if they can't afford to use their AC this summer. So very different than Linda. Yes, those are three different. OK. So, uh, and I believe we have a graphic here that just shows what the projected rate hikes are going to be for each utility, and we're talking really up to a 20% rate hike in electric rates coming up this summer. There you go, PSENG about 17.24%, just you know 20%. Atlantic City Electric 17.2% and then Rockland 18%. So I, I mean the question and what else can be done and I mean I, I realize a lot of this has to do with the energy market and auctions, but what else can be done on your end? Yeah, so I'm not any happier than the three folks who who sent their posts. Natalie Hamilton's with me. Let's get Dennis, uh, to follow up with Linda, Rick, and Lindy, I believe, right? Um, and we'll do that within the next 24 hours. There's a big abstract remote, I'm not sure I'd use the word villain, but there's a one big reason for this is this thing called PJM, which is a regional power assemblage of about 12 states dates back to the 1920s, by the way. We were one of the founders and it, it makes the notion makes a lot of sense. We can, you know, you're hot, I'm cold, you've got excess power. I don't have as much power as you do. We can find ways to get. Uh, to the point of attack, um, and they for reasons that are really frustrating, have held back on building new power capacity and we've got a big demand supply issue here and it's a little bit again, not entirely but kind of related to we're popular right now we have more people coming in and with more needs that are there. It makes the decision by the Trump administration which I hope we could still find. A compromise and common ground on offshore wind. It spends a ton of jobs, union jobs. It's clean, it's supply of energy, which is why these rates are going up. The only reason, but a big reason, uh, that one to me is one I'd like to get back. We're gonna talk more about that after the break. We'll take another quick break here on Ask Governor Murphy, and we'll be right back.

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All right, let's continue our conversation right now with Governor Murphy. We, before the break we started discussing skyrocketing utility rates, uh, starting this June, uh, electric rates in particular. Congressman Jeff Van Drew is among those calling on BPU board members to resign over this. I just want to get your take on that and, and, and where what role they are playing in relation to the actual rates that we're paying. That's incredibly irresponsible statement by Jeff, um, and he should know better. And he's the guy who convinced President Trump that offshore wind is woke, which is ridiculous. I'd like to ask Congressman Van Drew, what's your plan B for the South Jersey economy? What's your plan B for those three people who posted, uh, who do we have here? We had Linda, Rick, and Lindy, um, offshore wind, we had the largest program, and I still do. I'm not gonna talk about in the past tense. We've sort of put it on pause for now. But I'm hoping we could find a compromise. I'm looking forward to speaking to Trump administration folks in Washington later this week, um, but that's a huge source of energy that would go directly toward rebalancing those electric bills. It would create thousands of building trades jobs. It's clean. Um, I, I'm prepared to explore, um, options that put these much farther out in the ocean so that the line of sight issues, uh, either go away completely or they become de minimis. But that's an incredibly irresponsible statement and and the action that he has taken to convince President Trump that it's woke is unforgivable, particularly for South Jersey, which is where he represents talk more about offshore wind. Uh, Shell pulled out of the Atlantic Shores Project bidding for the 4th offshore wind project, uh, was canceled. Uh, the 4th round of bidding, pause pause. OK. The president put a moratorium, as you know, on, on new and, uh, leases and renewals. I know you said that you're hopeful that you'll get things back on track. Uh, how confident are you that that will happen again, given the president's past comments, uh, given the fact that you have companies like Shell now pulling out? Well, they, I, I, I don't wanna speak for Shell, but. You have uncertainty. This is going to go to a lot of other industries pretty quickly if the volatility in Washington stays this high in terms of tariffs, uh, etc. You're gonna have car companies. This will go, um, I fear, beyond offshore wind, but within the lane of offshore wind, companies want certainty. They want reliability. They want to be able to see a path that they can navigate and measure before they make massive investments. So these are not disconnected, uh, again, I can't speak for Shell, um, and again, I think I know the president well now for many years, uh, he is susceptible to good logic and, and he knows the building trades. He's a real estate guy. When he was running the first time, he said, I'm the only candidate in the history of the, of the country for president that knows what rebar is. I'll never forget that. A lot of those jobs that would have gone to building trades were people who voted for him. So the logic is overwhelming and again it gets back to folks. It's not the only salvation this PGM monster has to get moving faster, stronger, bigger sooner, but offshore wind is a no-brainer element to the solution here. All right, Governor, I have actually a couple more questions about offshore wind. We'll get to those later in the show. Keep it right here on Ask Governor Murphy. We'll be right back.

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I also have to raise a question. They look at the pretext for this rejection, and we have a lot of legal reasons why we know we're going to be victorious. But they actually cited. The will of New Jersey. New Jersey didn't want this. Ignoring the will, the people live here, they're elected leaders in Albany and all of a sudden the Trump administration is citing, well, New Jersey wasn't happy. All right, welcome back to Ask Governor Murphy, and that was your first time hearing Governor Hokel's comments that you told me that just happened, just happened. So let's get your reaction. Well, uh, again, I, I don't wanna cover ground we've already covered, and I have a lot of regard for Governor Hokle and, and by the way, she gets elected by people in New York, not New Jersey so I can understand, uh, in, in, in many respects her, her, uh, passion right now and this is obviously a program that's dear to her. The, the, the mistakes that were made were made way back when on the on the New York side of the Hudson and they were never corrected. If the MTA, by the way, again, this is a financial grab. On our back as opposed to some high minded only environmental uh program it is that, but they admitted themselves and in their rationale, the first paragraph of their rationale is they've got a financial hole that they have to fill and they, they figured this is the only way they could fill it. We took a more painful personal inside of New Jersey route with this corporate transit fee, and by the way, it's working. So if again, theoretically, way back when. Uh Let's sit down. Let's sit at a table, figure out maybe even God forbid a regional approach. We have been reasonable in my humble opinion from day one. And we continue to be We're not conceptually against this, but the deal, I'll use a diplomatic term as a former ambassador, sucked for New Jersey, and we, we, we weren't gonna stand for that. Our commuters were paying through the nose. The pollution was coming to us, not going away, and we weren't getting money, sufficient amount of money to deal with the pollution. So that's not a deal we can sign on to as opposed to we're opposed to. Reducing pollution or doing nothing about climate change or the environment. And, and I'll, one last thing, I, I mentioned this earlier. In so many respects as New York City goes, we go, particularly in the central and northern part of Jersey. We want this region to be a booming success, a model for the country. I didn't write the letter, by the way. I, I did not ask that New Jersey be added to the letter that Governor Hole was reading from that's, that's. That that's for someone else to answer. All right, Governor, let's uh move on to a caller. We have Victoria from Jackson on the line right now. Victoria, sorry to keep you waiting. It's been a very busy show. What's your question? Hey, Victoria. Good afternoon, Governor. Thank you for taking my question today. As you are aware, the Jackson School District has been significantly impacted by the S2 formula, and tonight the Board of Ed will be making a decision to merge their high schools as well as other revisions to the middle school. Jackson's request for a $13 million loan was previously denied, and last week Lakewood was approved for a $65 million loan marking its ninth loan for their education system. Given both districts are facing financial challenges, I'm left wondering how one district educational needs are prioritized over others. I appreciate the question, Victoria and, uh, first of all I'm, I'm gonna ask our great commissioner of the Department of Education, Kevin Dahmer, who by the way is a new dad, uh, to follow up Victoria, he will call you, uh, tomorrow, um, and we're also about to announce in the budget what goes with that is the, uh, school funding, uh, results for all districts and we heard a lot of districts loud and clear over the past couple of years. And we put a note out actually I think yesterday or the day before that said um for the state's piece of their budget again the state's piece that we would hold everybody to no less than 3% down from last year and we hope that that eases some of the pain. I know Jackson has been, uh, has gone through a lot of pain. You made a very tough decision to sell off, uh, uh, an elementary school, um, not easy. Um, you've also got other towns that are not making those tough decisions, which I'll leave nameless at the moment like the one you're debating tonight. Um, I can't give you right off the top of my head the dynamics in terms of enrollment, local wealth, capacity, etc. in Jackson as compared to Lakewood. I do know this every kid in Jackson deserves a great education just like they do in any other community. In the state with your blessing Victoria, I'm gonna ask Kevin, who was the guy who knows all these details and again is a terrific commissioner to give you a shout and go through Jacksonific as well as comparative questions you may have. Governor, let's, uh, play a quick question for you. Uh, of course, as you know that we send our crews around and we ask our viewers for questions out in the street, and this one is from Jacob at Rutgers. My question for Governor Murphy is, you know, in states like New York and the SUNY schools they've offered, uh, free, uh, public education and higher education. What steps are you taking to lower the cost of education, especially higher education in New Jersey? I missed his name, sorry, Jacob, Jacob, uh, we're gonna keep Dennis very busy, Natalie, if you get Dennis to follow up with, with Jacob, we've taken a ton of steps. Um, the community college opportunity grant was. A landmark new program in not just New Jersey in America, uh, the, the Rutgers sort of the Garden State guarantee that follows on from that, uh, for eligible folks we means test a lot of our programs, property tax relief, uh, higher ed tuition assistance, um, if you meet certain tests, uh, you're going for free. Those programs are wildly successful. I don't have a. Uh, walking around knowledge of how substantial the SUNY programs are or how they compare to our programs, but affordability and accessibility to higher ed to health care, to affordable housing to jobs, you name it, up and down those have been central hallmarks of our administration and look for us to continue on those, uh, on those paths going forward. Governor, we are gonna take another quick break, but we'll be right back with more. As Governor Murphy right here on News 12 New Jersey.

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Welcome back to Ask Governor Murphy. Governor, I wanna get back to something that we touched on a few minutes ago. I promise it's not congestion pricing again. Is it offshore? It's offshore, OK, we were talking about the current state of the projects that are, yeah, working through right now some we, we're not sure where they're going to be if they'll ever see fruition. How much taxpayer money, and this is a question that I've been seeing a lot, how much taxpayer money has actually gone into getting these projects underway from studies to, you know, wooing companies to to build these offshore wind farms. Um, I don't have a, a, a dollar amount off the top of my head. We got a $12525 million back from Ostead, um, for their walking out. Um, the big exposure financially is the wind port in South Jersey. The good news there is, and again, I'm not giving up on, on offshore wind, and I'll give you another angle that I think is important to at least for folks to realize, um. That's where our big economic exposure is. I can't give you a specific number, but it's substantial, but we also think that there are very compelling potential alternative uses for that port. So stay tuned on that again. Our first priority is offshore wind. Is there a plan B to to potentially replace these offshore wind farms if they don't come to fruition to be determined? I mean, we're we're back to your. Friends who put the Facebook posts up here with utility bills up 20%, you would think the last thing we would be doing right now would be to shorting more short more supply. It's a no brainer and it's a, it's a tragedy. Here's where I, I think there are two reasons to have some amount of optimism on a compromise. One is to explore, as I mentioned earlier, much farther out in the ocean, and I think with the technology that exists, that's, that's a possibility. The other is this, and Doug Burgum is the new secretary of the Interior, and he's a guy I know well he's a former governor of North Dakota. Uh, I don't agree with him on a lot of stuff, but he's a good guy and he's a smart guy. His big focus. Is on permitting And review processes and how much long, how long it takes and I've talked with him about this for a long time. He has been, I don't wanna put words in his mouth, historically agnostic as to the source of the power. It's the process of getting the power up and running through the reviews and permitting process. I, I, I think we could be a partner in that. So that's why I've got another reason I got some optimism. Richard from Belleville is on the line. Richard, thanks for calling in. What's your question? Yes, Governor, I, I would like to know, everyone talks about thousands of trade jobs being created with these wind farms, but I never see that come to fruition and there seems to be only temporary jobs created, not permanent jobs. And if there are thousands, of jobs being created, will they be in New Jersey and are the wind farm components coming from the US or are they coming from out of the US? Yeah, but I'll tell you, there's a lot of offshore wind tonight, Richard, thank you for that. I'm gonna have Tim Sullivan, who's the CEO of our economic development corporation, give you a shout, and if he wants to pull in Robert Sara Angelo, our commissioner of labor, uh, be my guest. The reason you haven't seen the jobs is the things haven't been built. That's the problem. They haven't been built. So these are what would have been thousands, and I mean literally, I think 8 to 10,000 building trades jobs. Number 1, so if this program gets back up on its feet, I guarantee you union jobs to the tune of many thousands. Secondly, Are where are they being built? We're the only state in America that has the port that I just described a few minutes ago. This is to manufacture an overwhelming amount of the components in not just America, New Jersey so this is a double. Challenge for us it's it's power that we would like and need to keep bills down that we don't have at the moment and it is manufacturing jobs. Union jobs in New Jersey that we desperately want. Governor, some reaction rolling in today after word that construction can now begin on a new gas-fired power plant in Newark. The purpose of this plant is to keep the Passaic Valley Sewage Commission sewage treatment plant in Newark running during power outages. We have a question from a viewer about this. Governor Murphy, you passed the environmental justice law to reduce pollution in the most overburdened communities, yet the first permit allowed under this law is adding another fossil fuel power plant in one of the most impacted areas. What are you going to do to ensure that this EJ law delivers real results and not just empty promises? Thank you, Chloe. I hope you're watching. I'm gonna ask, uh, Natalie Shawn LaTourette please, our commissioner of the Department of Environmental Protection. Uh, you said some Chloe said something which I don't think is technically true. This is not, I believe, the first plant under the new environmental justice laws, but it is adherent, the first one that is adherent to its parameters. Uh, this is one we've debated on this show, in fact, uh, this was a this came down to a question of what's one man's or one person's view of an environmental disaster versus another. This is a backup plant. That would only run, uh, I think monthly or quarterly for a couple of days to make sure like any generator that it was still active and it, it is born out of the catastrophe that befell the East ward of Newark after Superstorm Sandy where you had power outages, sewer backup sludge everywhere. This is to avoid that at the end of the day, the Department of Environmental Protection made the decision that this was not just adherent. Uh, within the parameters of the new environmental justice law, but that it was needed and, and I'm gonna ask its commissioner Sean LaTourette Chloe to follow up with you. Governor, gonna take another quick break. We still have some more questions to get to here on Ask Governor Murphy. We'll be right back.

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Welcome back to Ask Governor Murphy. Governor, uh, we've been keeping an eye on a couple of major stories, as you know this week, uh, the freight derailment in Union Township, 20 cars derailed about. What are you hearing about clean up and repairs for the folks in that area and, and at this point. The cause of the derailment, not sure on the cause. I'm gonna try to go fast here because I know where our clock is running. It's Conrail, so we talk a lot about we're beholden to Amtrak and Amtrak infrastructure. Conrail runs a ton of freight through New Jersey, uh, so it's a, we're, we have an inexorable, uh, relationship with our federal partners. This is it. Uh, just spoke to, uh, just was on with Chris Calori, the CEO of NJ Transit. They've been running a bus bridge quite successfully. He's cautiously optimistic this will be open tomorrow morning, so keep your fingers crossed. No hazardous materials, thank God. Let's talk about I-80 W. Two sinkholes in recent weeks, one eastbound, one westbound. Concerns about what's causing them. Could more of these happen? There's been a lot of testing and uh being done. What have you been told and and what can be done to ensure safety given this is such a vital artery? I want to give Fran O'Connor, our terrific commissioner of the Department of Transportation, a shout out. This appears to be Eric, the vestiges of a vacant long ago abandoned underground mine and mine shaft. Uh, and we've been doing Fran and his people and experts have been doing seismic testing. They've been putting, they're grouting in, uh, weakness weak areas. He said people literally working around the clock, including in some really crappy weather. Uh, state police have now been activated to. Work on the traffic flows. I was on with one of the mayors who's a buddy of mine up there and he was begging me for more help on the traffic relief. This one's gonna take longer. Conrail tomorrow, God willing, this is another 2 to 3 weeks is my guess, but we gotta make sure we get this right. It's bigger than we thought, um, uh, and we just got, we can't, we can't reopen for business and go through this again. Governor, uh, you just hosted a roundtable with students on, uh, phone free schools. This is at Woodbury Junior Senior High School. Uh, I, I, I got a chance to watch some of this and, and the questions and the comments from the students were very insightful. Uh, what did they tell you and what was your reaction? Eric? I was so darn impressed. I was just blown away. So I, I was impressed by the superintendent's plan and his courage. Uh, I first read about this in the Philadelphia Inquirer last September. I was impressed by watching a classroom algebra one. I got the shakes going in the class, by the way, uh, watching real learning and interactions. Really good discussion with teachers and then the Piesta resistance, which I think you saw a little of is the superintendent, two great legislators, Cody Miller and Rosie Baggoli and I with 8 rocking students and you don't walk into something like that expecting that they're gonna say, you know what, we love it, but they basically said that. Uh, they said this has allowed us to socialize better and more. It's allowed us to focus on our academics. I asked them, does it spill into your evening habits? So you, you've got this, it's this, this is a bell to bell school which I think is the best model. You put it in a pouch and you get it back when you leave at the end of the day. And, and there's gonna be some money in this budget, so that's the other thing we're putting several million dollars in basically chum to convince other districts because there's a little bit of investment here. These pouches, if you go the pouch route, they cost $30 a pop and you gotta put in these magnetic things where you undo them. You gotta get everyone on cue, landline phones. I was very comforted by the, you know, what happens if there's an emergency, lots of really good answers to that. And by the way, Woodbury is a great town. The mayor was with us, uh, Kyle Miller, great guy, but their model is not necessarily a one size fits all model. I do know this if we keep preferably bell to bell, that would be my preference, cell phones out of schools, it will be a game changer for our young people. Again, we're gonna put several million bucks to work to get districts to say, you know what, we want to try this as well, a really special, uh, visit for me. Governor, uh, we're pretty much just about out of time, so I want to give you a chance to, to give some final thoughts a lot going on. I mean, the budget, you'll see that on Tuesday, and I do. Make this comment in the budget we're we're, we're meeting at an unprecedented time in terms of the volatility in Washington. I'm not even saying that as a partisan matter, just a fact. So let's all band together. Let's stay close. I think Jersey will continue to be a beacon and it's great to be back. Good to have you in studio as always, Governor Phil Murphy, thank you so much for being here. This has been New Jersey Power and Politics special edition of Ask Governor Murphy. As always, we thank you so much for watching and we'll see you again next time.

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Gov. Phil Murphy answered viewers' questions on News 12 New Jersey's “Ask Gov. Murphy” program.

Gov. Murphy answers viewers questions on ‘Ask Gov. Murphy’ program - Feb. 19, 2025

Gov. Phil Murphy answered viewers' questions on News 12 New Jersey's “Ask Gov. Murphy” program.

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