As the deadline for processing the New Jersey state government’s new budget approaches at the end of this month, Governor Mikey Sherrill’s proposed reduction of “Stay New Jersey,” a property tax relief program for seniors, is emerging as the biggest point of contention. On the 3rd, State Assembly Speaker Greg Coughlin, a key figure holding the key to the budget’s passage, clearly stated his public opposition to Governor Sherrill’s plan to reduce Stay New Jersey.
Launched for the first time this year, Stay New Jersey is designed to provide property tax relief of up to $6,500 to homeowners aged 65 and older residing in New Jersey. However, facing the state budget deficit, Governor Cheryl proposed a scaled-down plan last March while drafting the new state budget.
This plan drastically lowered the income threshold for eligibility from the current “annual income of $500,000 or less” to “$250,000 or less,” and reduced the maximum refund to $4,000. Although the budget bill must pass the state legislature by the end of June, when the state fiscal year concludes, negotiations between the governor and the legislature are expected to face difficulties due to Chair Coughlin’s strong opposition.
Chair Coughlin, who spearheaded the introduction of the Stay New Jersey program in 2023, emphasized, “Given the severe property tax burden faced by homeowners aged 65 and older, lowering the maximum refund to $4,000 is insufficient,” adding that “this is a critical issue directly related to the lives of residents.” The Governor’s office has not issued an official comment regarding Chair Coughlin’s opposition.
However, the State Treasury Department maintains its stance in data previously submitted to the state legislature, stating that “to keep the maximum refund at the current $6,500 without burdening the state budget, the income ceiling for beneficiaries would actually have to be lowered further to $125,000,” arguing that maintaining the Stay New Jersey program as is would inevitably lead to significant cuts in other sectors of the state budget. Meanwhile, according to state government data, an average of $1,263 was paid to 467,676 residents through the Stay New Jersey program during the first half of this year.
The Stay New Jersey program distributes refunds to eligible beneficiaries on a quarterly basis.