Murphy Signs New Jersey Budget With $4.5 Billion in Borrowing

New Jersey Governor Phil Murphy signed a budget that closes the revenue gap caused by the pandemic with $4.5 billion of borrowing, enough to cover about 14% of the state’s spending.

The plan for a truncated nine-month fiscal year raises the income-tax rate to 10.75% from 8.97% for those earning at least $1 million a year. It also extends what was to be a temporary 2.5% surtax on corporations with income of $1 million or more.

Phil Murphy

Photographer: David Dee Delgado/Bloomberg

The state will make a $4.7 billion pension payment, or $200 million less than Murphy had pitched. It plans on a $2.5 billion ...