While providing more money to New Jersey.

Transit was among several areas where Governor Murphy on Tuesday said he plans to spend state funds, all as he unveiled a $58 billion state budget proposal that calls for property tax relief fully funding the pension and New Jersey's public schools.

But the plan is also counting on more than $1 billion in new taxes and fees, all presented amid massive uncertainty from the federal government and whether billions in aid the state typically relies on will be there.

Senior political correspondent David Cruz has more on what made it in and what didn't into this year's annual budget.

The most certain part of Governor Phil Murphy's final budget is the uncertainty of it all.

On the one hand, the record $58 billion spending plan acts like everything's fine.

Funding speaker conference stay NJ a tax relief plan aimed at seniors.

$800 million for NJ transit schools fully funded.

And lots of progressive priorities.

But on the other hand, this guy who could turn a polite election year state spending plan into a nightmare scenario for Congress is today talking about a budget resolution that could potentially have huge cuts to Medicaid, to nutrition assistance, snap, and those that hit directly in new Jersey homes, but they also hit the new Jersey budget.

We get almost $13 billion in Medicaid funding from the feds every year.

So even a small decrease in how much money we get would have a huge impact on the state budget.

Add to that a possibly more modest tax collection season in April.

Inflation still driving the cost of everything up.

A structural deficit between 1 and $4 billion, depending on your side of the aisle.

And you could potentially be looking at the dreaded fiscal cliff.

Republicans have been warning about eventually this state was going to hit the fiscal cliff.

And quite frankly, if it wasn't for Covid, we would have been here sooner.

But this governor has been able to use those funds over the last few years to spend more and more and more.

Unfortunately, spending the money the way it has been spent is a missed opportunity.

And with an additional billion dollars in taxes and trims to Main Street business incentive programs and zero real estate tax breaks are anchor.

The state's business community was also displeased with what they heard from Murphy, including Tom Bracken of the state's Chamber of Commerce, who said the state is ill prepared for the federal cuts that most everyone here expects are coming.

If that does happen for the federal government, we're going to be saddled with all that and an economy that's very weak.

You don't want to go into a mess like that from a position of weakness.

And I'm telling you, there's a lot there's a there's a big price to pay.

If that were to happen and you at the same time have to try to rebuild our economy.

I don't know how you do that simultaneously.

Folks probably bear a little better if it's targeted for transformation, right?

If it's going to elevate individuals and or communities from where they are to where they could potentially be, the state is not short of ideas, economic ideas, but who benefits from them?

That's where the disconnect is.

To those of you out there who I know are going to criticize the size of our budget proposal, which, by the way, is $58.05 billion.

I ask you this what would you cut?

Because I, for one, refused to sell off our children's future just to score a cheap headline.

Cheap headlines or not.

Critics say storm clouds are gathering while the administration chooses the headline that says the sun is still shining.

And that's the context in which the governor's final budget will be debated through the end of this fiscal year.

June 30th.

I'm David Cruz, NJ Spotlight News.