New Jersey Gov.. Phil Murphy on Thursday signed a record $ 50.6 billion budget for the Garden State that included provisions to help alleviate the country’s highest property taxes, assist people purchasing school supplies, and provide a child tax credit.
Here’s how the massive budget will affect New Jersey residents.
»READ MORE: Murphy signs $ 50.6 billion NJ budget with property tax relief
The budget includes $ 12.8 billion in direct aid for New Jersey public schools. That includes nearly $ 2 billion for the construction of new schools through the Schools Development Authority, along with other needs and capital maintenance.
Most of the money is set aside for Schools Development Authority districts. The authority is the state agency responsible for managing and funding construction and renovation projects at 31 public school districts throughout the state, with nine in South Jersey.
The budget includes a sales tax holiday on school supplies in late August and early September. From Aug. 27 to Sept. 5 at brick-and-mortar and online stores, people buying school supplies will get a break from the 6.625% sales tax, in an effort to alleviate back-to-school costs.
There is $ 3 billion allotted in the budget for capital spending, including building schools, new roads and for other mass-transit projects in New Jersey.
NJ Transit, the state owned public transportation system, will get an additional $ 40 million through the American Rescue Plan funds.
Some of the major mass transit projects that are funded include more than $ 72 million to improve the Northeast Corridor train line and $ 250 million to improve the Walter Rand Transportation Center in Camden.
New Jersey — with an annual average property tax burden of $ 9,300 — has the highest property taxes in the country, and residents have long requested relief.
To help defray the costs, this year’s budget includes a property tax credit for homeowners with a rebate for renters.
Some 870,000 families that make up to $ 150,000 annually would get “direct relief” of $ 1,500; those earning from $ 150,000 to $ 250,000 will get $ 1,000 in credits, and for the first time ever renters will also get assistance.
Renters The program has a $ 2 billion price tag and will help an estimated 2 million households.
The budget includes a $ 500-per-child tax credit for lower-income residents that phases down to $ 100 when income reaches $ 80,000 a year.
Households with income of $ 80,000 or less would get the credit for each child under age 6. Households with income of $ 30,000 or less would get a $ 500 credit for each child
The credit gets reduced by $ 10 for every $ 1,000 of income above $ 30,000.
The state’s department of law and public safety, which includes the New Jersey State Police, will be receiving more than $ 70.4 million in this year’s budget.
The state’s $ 28 marriage license fee and a number of motor vehicle fees will be suspended, per the budget.
The spending plan also sets aside $ 6.3 billion in surplus, which Senate budget committee chair Paul Sarlo said was the biggest in state history.
The Associated Press contributed to this article.