The NJ budget is on Murphy's desk. Here's what it looks like and what's next

A day after the Legislature passed a $38.7 billion budget, Gov. Phil Murphy suggested he will avoid a government shutdown but may take New Jersey to the brink of one. 

Murphy has until July 1 to sign the Legislature's budget, strike language in it, or send it back to Statehouse for lawmakers and come up with a new deal. It passed with nearly veto-proof majorities: 31-6 in the Senate and 53-24 in the Assembly. If no deal is reached, state government could shut down. 

"Within the next nine days, I will meet my constitutional responsibility to enact a balanced budget for New Jersey," Murphy said at a news conference.

But Murphy later injected uncertainty over whether that meant he would sign a budget into law to avoid a shutdown.

"I don't think I ever said that I would sign it, necessarily, in the next nine days," Murphy said. "I'm just saying you should assume everything is on the table and we'll use the whole clock." 

Here's what made it through and what was left on the cutting-room floor:

What's in

More money for NJ Transit: Lawmakers inserted an additional $50 million for the public transportation system, on top of Murphy's proposed extra $25 million. 

A record pension payment: New Jersey will pay an unprecedented $3.8 billion into the vastly underfunded public pension fund. That's only 70 percent of the recommended amount that would keep costs from getting more out of control. 

Property tax relief: The budget bill includes $175 million in property tax relief, including fully funding the Senior Freeze program and expanding the veterans' income tax deduction. The budget also includes $50 million to fund extraordinary special education costs to assist local school districts.

HMO tax increase: Murphy proposed bumping up a tax paid by health maintenance organizations from 2 to 3 percent. 

Minimum wage increases: Legislators added $65 million to help fund wage increases for professionals that include those who help the elderly or people with disabilities. 

Lots of grants and projects: Lawmakers added $100 million for local or regional legislative projects such as $5 million for Cooper Hospital grants, $1.5 million for a special needs facility in Woodbridge Township and $500,000 for industrial hemp farming, among others.

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What's out

The governor's signature millionaires tax: Murphy was pushing an increase on the top marginal tax rate from 8.97 to 10.75 percent on income over $1 million, which would bring in more than half a billion in new revenue. Lawmakers said they didn't want to raise taxes, especially after new federal tax rules capped what residents could write off in state and local taxes.

"Corporate responsibility fee": Murphy wanted to require private companies with more than 50 employees to pay $150 per worker enrolled in Medicaid. 

Fees on guns and ammunition: Murphy proposed to increase fees to buy a firearm from $2 to $50, while bumping up a concealed carry permit application fee from $20 to $400. Legislators left these fee hikes out.  

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A rainy-day fund: The governor proposed putting $317 million into a restricted "rainy-day fund," which can be touched only during a recession or emergency. Lawmakers moved that money into the surplus, which doesn't have such restrictions. 

A $125 tax credit: Murphy wanted to use $250 million of revenue coming from the millionaires tax to give close to half of New Jersey taxpayers a one-time $125 income tax credit to use on 2019 tax returns. 

Expanded free community college tuition: Murphy sought to expand the Community College Opportunity Grant program, which provides free tuition to students who have high grades, have a household income below $45,000 and could not receive other funding help. The Legislature slashed $30 million from the program.