>>> FUNDING FOR NJ SPOTLIGHT NEWS PROVIDED BY THE MEMBERS OF THE NEW JERSEY EDUCATION ASSOCIATION, MAKING PUBLIC SCHOOLS GREAT FOR EVERY CHILD.

RWJ BARNABAS HEALTH , LET'S BE HEALTHY TOGETHER.

AND ORSTED, COMMITTED TO THE CREATION OF A NEW, LONG-TERM , SUSTAINABLE CLEAN ENERGY FUTURE FOR NEW JERSEY.

♪ >>> THIS IS NJ SPOTLIGHT NEWS WITH BREANA VANNOZZI .

>>> GOOD EVENING AND THANK YOU FOR JOINING US.

I'M BREANA VANNOZZI.

GOVERNOR MURPHY UNVEILS ANNUALLY $45 BILLION BUDGET, PLAYING OUT HIS ELECTION-YEAR PRIORITIES AS WE CALL OUR WAY OUT OF THIS PANDEMIC, DELIVERING THE FOURTH AND FINAL BUDGET ADDRESS OF HIS FIRST TERM.

PAINTED BRIGHTER THINGS TO BETTER-THAN-EXPECTED REVENUES AND BIG PROMISES FOR THE YEAR AHEAD.

A HISTORIC PENSION PAYMENT MADE WITH NO NEW TAXES, AND MONEY FOR MOST OF THE GROUPS COMPETING FOR CASH.

BUT WHAT IS BEHIND THE FINE PRINT?

OUR SENIOR CORRESPONDENT BRENDA FLANAGAN REPORTS.

>> THIS IS THE TIME TO MOVE NEW JERSEY FORWARD, AND THAT IS WHAT THIS BUDGET DOES.

BACK STANDING IN AN EMPTY THEATER BECAUSE OF COVERED, GOVERNOR MURPHY UNVEILED A $44.8 BILLION SPENDING PLAN THAT AIMS TO HELP HEAL THE ECONOMIC PAIN BUT BY THE PANDEMIC, AND BOOST HIS POLITICAL JUICE AS HE AND STATE HOUSE DEMOCRATS SEEK REELECTION IN NOVEMBER.

MURPHY'S PROPOSED BUDGET FOR 2022 DOES NOT RAISE ANY TAXES, FEES, OR TRANSIT FARES FOR RESIDENCES WILL REELING FROM THE ONGOING PANDEMIC, BUT APPROPRIATES 10% MORE FROM THE LAST PHYSICAL GOVERNMENT, OFFERING TAX BREAKS FOR SENIORS AND VETERANS.

>> THIS LIVES UP TO OUR STRONGER AND FAIR MISSION, JOGGER TO COME OUT OF THE PANDEMIC IN AN ECONOMY THAT WORKS FOR EVERY NEW JERSEY FAMILY, AND PHARAOH TO HELP FAMILIES AND SMALL BUSINESSES HIT HARD AND LEFT BEHIND IN THE PANDEMIC'S BRUTAL WAKE.

>> Reporter: THEY GOT MONEY TO SPEND WITH BETTER-THAN-EXPECTED TARIFF REVENUES IN HAND, +4 BILLION FOLLOWED LAST YEAR TO OFFSET PROJECTED PANDEMIC RELATED OFF LOSSES.

$2 BILLION IN FEDERAL COVID EIGHT, AND MORE INCOMING FROM A NEW CONGRESSIONAL RELIEF PACKAGE.

HE IS LOOKING TO SOOTHE FINANCIALS OR POINTS LIKE ESCALATING PROPERTY TAXES, WHICH CHOPPER 9 THOUSAND DOLLARS ON AVERAGE FOR THE FIRST TIME EVER LAST YEAR TO HELP EASE THAT BURDEN.

HE OFFERED THE USUAL PROPERTY TAX REBATES.

HE DOES NOT INCREASE MUNICIPAL AID, BUT PROPOSES SPENDING NEARLY 600 MILLION MORE DOLLARS IN SCHOOL FORMULA 8, $9.26 BILLION AFTER HOLDING THAT FUNDING FLAT LAST YEAR.

>> EVERY DOLLAR A NEW STATE FUNDING IS A DOLLAR THAT DOESN'T HAS TO BE PASTE ON THE SHOULDERS OF LOCAL PROPERTY TAX PAYERS.

>> Reporter: BIG-TICKET PRAIRIES INCLUDE THE FIRST FROM HIM AND INTO THE STATES PUBLIC PENSION SYSTEM SINCE 1996, CERTAIN TO PLEASE UNION PARAMETERS.

PAYMENTS HAVE BEEN STEADILY WRAPPING UP, BUT THIS COMES A YEAR AHEAD OF SCHEDULE, A RESULT OF THOSE BETTER-THAN- EXPECTED REVENUES.

>> MAKING THE PAYMENT IS KEEPING OUR WORD, THE HUNDREDS OF THOUSANDS OF RETIREES WHO DEPEND ON THEIR PENSIONS.

>> Reporter: THE GOVERNOR OFFERED A BROAD MENU OF OTHER TAX RELIEF ITEMS FOR OTHER CONSTITUENTS.

THEY INCLUDE TAX REBATES OF UP TO $500 FOR NEW JERSEY SINGLE- PARENT FAMILIES EARNING $75,000 OR LESS, OR TWO-PARENT HOUSEHOLDS MAKING $150,000 OR LESS, PART OF A DEAL BROKERED DURING THE MILLIONAIRES TAX NEGOTIATIONS LAST SUMMER.

>> BECAUSE OF THIS, NOT ONLY HAVE WE SECURED THE RESOURCES TO INVEST MORE DEEPLY INTO OUR COMMUNITIES, WE ARE ABLE IN THIS BUDGET TO PROVIDE CHECKS TOTALING NEARLY $320 MILLION INDIRECT TAX REBATES TO HUNDREDS OF THOUSANDS OF WORKING AND MIDDLE-CLASS NEW JERSEY FAMILIES.

>> Reporter: AND THERE IS MORE, A BROADER AND INCOME TAX CREDIT ELIGIBILITY FOR SENIORS WITHOUT DEPENDENTS, AND EXPANDED PROPERTY TAX DEDUCTION FOR VETS WHO SERVED DURING PEACETIME, AND AN ENHANCED CHILD AND DEPENDENT CARE CREDIT THAT HELPS PAY CHILDCARE COSTS BY MAKING IT REFUNDABLE, AND EXPANDING INCOME ELIGIBILITY FROM $60-$150,000.

>> FOR MANY FAMILIES, AND MOST ESPECIALLY FOR NEW JERSEY WOMEN, THIS EXPANSION WILL MAKE YOUR TAX CREDIT BIGGER TO ALLOW YOU TO RECOUP MORE OF THE COST OF CHILDCARE.

>> Reporter: NJ TRANSIT WOULD NOT RAISE FARES, BUT THE AGENCY WOULD KEEP ON CANNIBALIZING ITS OWN CAPITAL BUDGET AND RELYING ON TRANSFERS FROM THE CLEAN ENERGY FUNDING TO PAY DAY-TO- DAY EXPENSES.

THERE IS MORE MONEY TO UPDATE OLD COMPUTERS AIMED AT IMPROVING UNEMPLOYMENT CLAIM PROCESSING AT THE DEPARTMENT OF LABOR, AND TRANSACTION AT THE MOTOR VEHICLE COMMISSION.

>> TWO AREAS IN PARTICULAR WHERE THE PANDEMIC EXPOSED SHORTCOMINGS.

TOO MANY PEOPLE ACROSS NEW JERSEY PAID THE PRICE FOR THAT LONG-STANDING NEGLECT.

SO, THIS IS MY SIMPLE, CLEAR MESSAGE.

NEW JERSEY IS DONE KICKING PROBLEMS DOWN THE ROAD.

WE ARE SOLVING THEM.

>> Reporter: REPUBLICANS PREDICTABLY FUMED OVER THE GOVERNOR'S PRIORITIES.

>> GOVERNOR MURPHY BELIEVES THAT THE SOLUTIONS FOR NEW JERSEY IS MORE PROGRAMS, MORE GOVERNMENT SPENDING.

HE BELIEVES THAT GOVERNMENT IS THE SOLUTION.

>> THE WHOLE BUDGET IS KIND OF A SCAM.

THE MOST OFFENSIVE PART WAS SMOKE AND MIRRORS, BECAUSE THIS IS A SMOKE AND MIRRORS BUDGET, TO HAVE THAT KIND OF BORROWING.

WE COULD HAVE PAID THE BILLS WITHOUT THAT ADDITIONAL BORROWIG.

>> SURPRISE, SURPRISE.

IT'S AN ELECTION YEAR AND THE GOVERNOR IS RUNNING FOR REELECTION.

THIS BUDGET IS 29% HIGHER THAN WHEN THE GOVERNOR TOOK OVER FROM GOVERNOR CHRISTIE.

>> Reporter: BUT REPUBLICANS FACE A DEMOCRATIC TRIFECTA IN TRENTON.

NOW BEGINS THE MONTHS LONG SERIES OF PUBLIC HEARINGS BEFORE LAWMAKERS MET WITH A JUNE 30th BUDGET DEADLINE.

BRENDA FLANAGAN, NJ SPOTLIGHT NEWS .

>>> IN FACT, SOME REPUBLICAN LAWMAKERS ARE PROPOSING A SPECIAL SESSION TO GET THIS MASSIVE BUDGET APPROVED EARLIER, AND MANY OUT TO STRUGGLING BUSINESSES AND FAMILIES SOONER.

THE PROPOSED SPENDING IS ABOUT 10% MORE THAN LAST YEAR'S BUDGET.

OF COURSE, THE PANDEMIC IS NOT IN OUR SIGHTS THEN.

EVEN WITH ALL OF THIS EXTRA CASH, THERE IS NO PLAN TO ROLL BACK THE NEW TAXES THAT PREVIOUS BUDGET CREATED TO GET US HERE.

OUR BUDGET AND FINANCE BRIGHTER IN BUSINESS CORRESPONDENT AUGUST THROUGH THE DETAILS.

>> Reporter: LET'S TALK ABOUT THE SURPLUS.

LET'S TALK ABOUT EXACTLY WHERE THIS IS GOING WITH $45 BILLION ON THE TABLE.

>> SO, THAT IS ABOUT 10% HIGHER THAN THE APPROPRIATIONS THAT WERE APPROVED FOR, WELL, WHAT IS THE CURRENT FISCAL YEAR.

THE CURRENT FISCAL YEAR RUNS THROUGH THE END OF JUNE.

WHAT WE ARE TALKING ABOUT IN THE NEW BUDGET WILL BE IN PLACE FROM THE BEGINNING OF JULY, ALL THE WAY UNTIL THE END OF JUNE, 2022.

YEAR OVER HERE, WE TALK ABOUT 12 MONTHS SPENDING MY WHAT LAWMAKERS APPROVED VERSUS WHAT THEY WOULD BE ASKED APPROVED IN THIS BUDGET, IS UP ABOUT 10%, A LITTLE MORE THAN THAT, A BIG AMOUNT.

WE ARE GOING TO AND THE CURRENT FISCAL YEAR WITH A LOT OF BUDGET RESERVES.

NEW JERSEY IS NEVER IN THAT POSITION.

NEW JERSEY IS ALWAYS PATCHING IT AND MAKING IT GO WITH VERY MEAGER RESERVES.

BETWEEN THE BORROWED MONEY, THE UNEXPECTED TAX COLLECTIONS, AND AS RHONDA MENTIONED, WE STILL HAVE THE POTENTIAL TO RECEIVE SOME FEDERAL DOLLARS THAT WOULD FREE UP EVEN MORE STATE RESOURCES.

THERE IS A GOOD PORTION OF SURPLUS THAT WILL BE SPENT DOWN IN FY 22 UNDER WHAT THE GOVERNOR HAS PROPOSED.

THAT WILL LEAVE ABOUT 5% IN RESERVES, ABOUT THE AMOUNT THAT MURPHY'S ADMINISTRATION HAS MAINTAINED, BUT NEW JERSEY IS ALWAYS KNOX FOR HAVING VERY SLIM RESERVES.

IF YOU REMEMBER, IN THIS DOWNTURN CAUSED BY CORONAVIRUS BEGAN, FUNDING FOR THINGS LIKE THE HOMESTEAD PROPERTY TAX RELIEF BENEFIT WAS PULLED BACK ALTOGETHER, BECAUSE WE DIDN'T HAVE ENOUGH MONEY IN RESERVES TO ABSORB THE LOSSES.

THAT IS A KEY ISSUE TO KEEP AN EYE ON GOING FORWARD.

>> Reporter: LET'S HIT ON THOSE PENSION COMPETITIONS.

THIS WOULD BE THE FIRST TIME IN 25 YEARS THAT THIS WILL PAYMENTS WOULD BE MADE SINCE 1996?

HOW IS THIS GOING TO WORK?

>> Reporter: FIRST OF ALL, IT IS SIGNIFICANT.

AT $6.4 BILLION PAYMENT MAKES A BIG DIFFERENCE.

WE CAN DEBATE WHAT HAPPENS IN FUTURE BUDGETS, WHERE WILL THE MONEY COME FROM.

THAT'S FOR ANOTHER DAY.

IT IS SIGNIFICANT TO TRY TO GET THE PENSION SYSTEM ON FIRMER GROUND.

KEEP IN MIND, THE NEW JERSEY IS NOT BY THE CREDIT AGENCIES, THEY ALWAYS BRING UP THIS UNDERFUNDED PENSION ISSUE.

IT IS SIGNIFICANT, BUT AS JOHN POINTED OUT, WE HAVE THE RESOURCES IN THIS BUDGET THANKS TO THOSE REVENUES COMING IN BETTER-THAN-EXPECTED, AND THE BORROWING.

THERE WAS A PATHWAY TO MAKE THIS HAPPEN, BUT IT IS SIGNIFICANT.

I'M GOING TO BE CURIOUS TO SEE IF IT IS NOTED ON WALL STREET FROM THE CREDIT RATING AGENCIES.

>> Reporter: JOHN, NO MENTION OF PAYING DOWN OUR BONDED DEBT.

BUT THERE IS SOME RELIEF IN STORE, IT LOOKS LIKE, FOR SOME PROPERTY TAX PAYERS, YES?

>> YES.

UNDERSCORING WHAT RHONDA SAID ON PENSIONS, IT WOULD BE AMAZING IF THEY DID NOT COME UP WITH THE RESOURCES TO MAKE THAT CONTRIBUTION, GIVEN WHAT THEY HAVE IN TREASURY RIGHT NOW.

AND DIRECT PROPERTY TAX RELIEF, THERE IS OVER $1 BILLION IN THIS BUDGET, AND PROPERTY TAXES WAS SAID ABOUT 10 DIFFERENT TIMES DURING THE SPEECH, WHICH IS NOT SURPRISING GIVEN THIS IS A REELECTION YEAR.

ONE THING WORTH NOTING, SOME OF THE LINE ITEMS ARE HELD FLAT, OR EVEN GOING DOWN WHEN IT COMES TO PROPERTY TAX RELIEF.

SENIOR FREEZE HAS HELD FLAT, SO THAT MEANS NO GROWTH, AT HOMESTEAD IS ACTUALLY TAKING DOWN A LITTLE BIT BECAUSE THE TREASURY IS KEEPING, WITH THE MURPHY ADMINISTRATION, INCOME LIMITS FOR THAT PROGRAM STATIC.

THEY ALSO CONTINUE TO USE BILLS THAT WERE ASSESSED IN 2006 TO CALCULATE THE BENEFITS THAT HOMESTEAD RECIPIENTS GET.

THAT'S SENIORS, DISABLED RESIDENTS, AND HOMEOWNERS WITH INCOMES UNDER $75,000.

SO, WE WILL HAVE TO SEE ABOUT THAT GOING FORWARD.

LAWMAKERS ARE UP FOR REELECTION THIS YEAR AS WELL.

PROPERTY TAX JUST GREW TO AN ALL-TIME HIGH LAST YEAR, YET THIS HOMESTEAD BENEFIT REMAINS STATIC.

THAT MEANS WHAT PEOPLE ARE RECEIVING IS NOT KEEPING PACE WITH THE BILLS THEY ARE GETTING, WHICH TO SOME PEOPLE WOULD AMOUNT TO A TAX HIKE.

>> Reporter: $9000 WAS THE PROPERTY TAX BILL.

JOHN MENTIONED THAT IT IS AN ELECTION YEAR.

THESE ARE ELECTION-YEAR PRIORITIES.

SOME OF THESE OTHER FACTORS, SOME OF THESE OTHER ITEMS FACTOR INTO THAT, THESE OTHER GROUPS GETTING MONEY?

>> Reporter: IT'S INTERESTING.

NOW IS WHEN THE DEBATE BEGINS IN TERMS OF WHERE SHOULD MONEY BE INVESTED.

JUST TO PULL OUT A FEW THINGS, AND YOU HEARD SO MANY DURING THAT SPEECH.

THERE IS THE MONEY FOR SMALL BUSINESSES, MONEY TO HELP MAIN STREET.

WE COULD GET MORE MONEY FROM THE FEDERAL GOVERNMENT THAT MIGHT HELP SURE THAT UP.

YOU HEARD ALL THIS YEAR GOVERNOR MURPHY TALKING ABOUT THE GREEN ECONOMY.

HE IS PUTTING SOME MONEY INTO THAT WITH THE OFFSHORE WIND PRODUCT THAT WAS ANNOUNCED RECENTLY IN SOUTH JERSEY.

THAT'S A DIRECT ALLOCATION.

I WOULD BE REMISS IF WE DID NOT TALK ABOUT ALL OF THESE UNEMPLOYED WORKERS IN NEW JERSEY .

THERE IS SOME MONEY COMMITTED TO JOB AND WORKPLACE TRAINING.

IS IT GOING TO BE ENOUGH?

THAT MIGHT BE A POINT OF ARGUMENT AMONG LAWMAKERS IN AN ELECTION YEAR, TO GET THESE RESIDENTS OFF OF THE UNEMPLOYMENT ROLLS, GET THEM TRAINED, GET THEM INTO NEW JOBS, ESPECIALLY IF OUR ECONOMY STARTS TO PICK UP.

>> Reporter: IT LOOKS LARGELY LIKE GOVERNOR MURPHY HAS AVOIDED SOME OF THE PAINFUL SPENDING CUTS THAT WE WERE ALL TALKING ABOUT BACK IN AUGUST, WHEN HE PRESENTED THE REVISED BUDGET.

I WANT TO MENTION SOME OF THE OTHER NEW ITEMS AT THE GOVERNOR BROUGHT UP, GARDEN STATE GUARANTEE.

THIS IS LOOKING TO FUND THE FIRST TWO YEARS OF COLLEGE FOR STUDENTS ELIGIBLE AT 4 YEAR COLLEGES AND UNIVERSITY, AND TAKE IT'S HEALTHCARE, MATERNAL HEALTH, ALL PRIORITIES THAT WE HAVE HEARD THE GOVERNOR TALK ABOUT THROUGHOUT THE LAST SEVERAL YEARS.

>> YES, ABSOLUTELY.

I DON'T THINK MURPHY HAS DONE ANYTHING THAT PEOPLE WOULD ACCUSE HIM OF, SENDING MIXED SIGNALS.

I THINK THIS BUDGET REPRESENTS TO A T THE TYPES OF THINGS THAT HE HAS ALWAYS ADVOCATED FOR.

HE SAID IN A SPEECH, I COUNTED, LET'S SEE, ALMOST 20 TIMES HE SAID THE WORD "INVESTMENT," WHICH IS ANOTHER MURPHY CATCHPHRASE.

TAXES HAVE BEEN INCREASED THROUGHOUT HIS TENURE, BUT HE HAS ALWAYS COUCHED THAT AS TO SUPPORT INVESTMENTS.

I THINK THAT IS HOW WE SHOULD LOOK AT WHAT THIS PROPOSAL IS.

CERTAINLY NONE OF THE TAX HIKES THAT CAME AMID THE EMERGENCY CIRCUMSTANCES OF A FEW MONTHS AGO ARE BEING ROLLED BACK.

ALL OF THAT FUNDING IS COMING INTO THE TREASURY, AND MURPHY IS ABSOLUTELY SAYING HE WANTS TO MAKE INVESTMENTS IN THINGS LIKE COLLEGE EDUCATION, COMMUNITY COLLEGE EDUCATION, MATERNAL HEALTH, A LOT OF THE AREAS THAT HE HAS MADE NO SECRET ABOUT EMPHASIZING IN THE PAST.

'S WORK >> Reporter: SCHOOL FUNDING GETS A BOOST AS WELL?

>> Reporter: YOU DO SEE AN INCREASE.

I WOULD SAY IT IS QUINTESSENTIAL GOVERNOR MURPHY, STRONGER AND FAIRER ECONOMY.

THERE IS NO REAL SURPRISES IN TERMS OF SOME OF THESE IDEAS, AND WHERE HIS COMMITMENT IS.

WHAT WILL BE INTERESTING IS TO SEE WHERE THE PUSHBACK COMES FROM.

THE GOVERNOR DOES NOT JUST PRESENT A BUDGET AND EVERYONE SAYS, GREAT.

WE ARE OKAY WITH EVERYTHING IN HERE.

WE KNOW THERE WILL BE A BIT OF PUSHBACK.

GOVERNOR MURPHY IS SAYING THAT PROPERTY TAX INCREASES HAVE RISEN AT THE SMALLEST PERCENTAGE COMPARED TO PRIOR GOVERNORS.

PEOPLE DON'T REALLY WANT THAT.

THEY WANT MORE PROPERTY TAX RELIEF, AND THE BUSINESS COMMUNITY, THERE WAS A CORPORATE BUSINESS TAX SURCHARGE THAT DID NOT GET REVERSED.

THERE MIGHT BE SOME PUSHBACK THERE.

BUT IN TERMS OF SPENDING PRIORITIES, I THINK WE GOT WHAT WE WOULD EXPECT FROM THE GOVERNOR.

>> Reporter: RHONDA SCHAFFLER AND JOHN REITMEYER, WE WILL TALK TO YOU LATER.

>>> WITH THE NOVEMBER ELECTION JUST AHEAD, MURPHY DOES STAND TO BENEFIT IF THE LEGISLATURE AGREES TO HIS SPENDING, FROM ORGANIZED LABOR TO PROGRESSIVE GROUPS.

THERE IS A LITTLE SOMETHING FOR EVERYONE.

THESE PROPOSALS WILL LIKELY BECOME BOTH HIS BEST AND WORST ENEMY GOING INTO CAMPAIGN SEASON.

COLLEEN O'DEA TAKES A LOOK AT THE POLITICS BEHIND THE NUMBERS.

>> Reporter: DOES THIS MAKE SENSE DURING AN ELECTION YEAR, TO HAMMER ON SOME OF THESE KEYWORDS THAT JOHN REITMEYER COUNTED FOR US DURING THAT SPEECH?

>> Reporter: YES.

I WILL JUST ECHO WHAT EVERYONE ELSE HAS SAID, WHICH IS CLEARLY , THIS IS AN ELECTION YEAR BUDGET.

THERE IS AN AWFUL LOT OF POLITICS AND WHAT WE HEARD.

YOU KNOW, TALKING ABOUT PROPERTY TAX RELIEF IS ALWAYS SOMETHING THAT GOVERNORS ARE GOING TO STRESS IN NEW JERSEY, BECAUSE OUR TAXES ARE SO HIGH HERE.

BUT THERE ARE A NUMBER OF THINGS IN THIS ADDRESS THAT WERE QUITE SURPRISING, THAT ARE NOT THE TYPICAL PHIL MURPHY STRONGER AND FAIRER KIND OF LIBERAL AGGRESSIVE DISCUSSION THAT WE HEAR FROM HIM.

THEY HAVE ALWAYS LOOKS FOR SAVINGS, THEY LOOK FOR EFFICIENCIES.

AS MENTIONED, THE GOVERNMENT IS SMALLER THEN WHEN HE TOOK OFFICE, AND THE MOST SHOCKING WAS THAT THEY ARE CHANGING ARE SOMEHOW DOING AWAY WITH SOME RULES REGARDING DEP AND OTHER PERMITS THAT WILL MAKE THE PROCESS SMOOTHER AND FASTER.

THOSE KINDS OF THINGS ARE ALWAYS THINGS WE HAVE HEARD FROM A REPUBLICAN GOVERNOR.

IT CERTAINLY SEEMED TO ME THAT THIS SPEECH WAS MEANT TO ATTRACT PEOPLE BEYOND THE TYPICAL DEMOCRATIC BASE THAT THE GOVERNOR HAS CERTAINLY GOTTEN A LOT OF SUPPORT FROM.

>> Reporter: LET'S BE CLEAR HERE .

IN THIS DEMOCRATIC-CONTROLLED LEGISLATURE, SENATOR SWEENEY AND THE ASSEMBLYMAN SPEECH OR CRAIG COUGHLAN HAVE MADE IT CLEAR THAT THEY ARE NOT GOING TO GO FOR NEW TAXES.

THEY WANT OVER SOME OF THOSE PROPOSALS THAT MAY BE MURPHY WOULD HAVE TRIED FOR PREVIOUSLY.

IN THAT SENSE, IT IS A BIT MOOT.

>> Reporter: RIGHT.

THIS NEW TAX PROGRAM THAT WE HEARD ABOUT TO FAMILIES WITH CHILDREN ONLY CAME ABOUT AS PART OF A BARGAINING CHIP OVER THE MILLIONAIRES TAX, THAT ACTUALLY WE DID GET PAST LAST YEAR.

THEY WOULDN'T STAND FOR IT WITHOUT THE KIND OF SUPPORT.

THE GOVERNOR WANTED THAT.

REMEMBER, HE HAD PROPOSED THIS BB BOND PROGRAM LAST YEAR THAT DID NOT GO THROUGH, BUT THIS WAS KIND OF AN ALTERNATIVE TO THAT.

>> Reporter: LET ME ASK YOU QUICKLY ABOUT THE REBATES THAT ARE SAID TO GO OUT THIS SUMMER, ABOUT $320 MILLION TOTAL, A SLIDING SCALE.

WHAT CAN YOU TELL US ABOUT THAT QUICKLY?

>> Reporter: THOSE ARE GOING TO GO TO FAMILIES WITH CHILDREN, YOU KNOW, THE LOWER INCOME, THE HIGHER YOUR BENEFIT WOULD BE.

YOU KNOW, THE REPUBLICANS HAVE KIND OF TERMED IT, YOU KNOW, A KIND OF PAYMENT, RIGHT, TO MAYBE GET MORE PEOPLE TO VOTE FOR THE GOVERNOR.

YOU KNOW, THAT IS A CYNICAL WAY TO LOOK AT IT.

YOU KNOW, THAT WAS THE SAME KIND OF LANGUAGE THAT WAS USED WHEN WE TALKED ABOUT THE STIMULUS PAYMENTS FROM THE FEDERAL GOVERNMENT, ALTHOUGH THAT DIDN'T HELP DONALD TRUMP LAST YEAR.

WHO KNOWS HOW THAT WILL LAND POLITICALLY, BUT IT IS DEFINITELY TARGETED, AND IT IS MEANT TO GO TO THE FOLKS WHO NEED HELP THE MOST.

>> Reporter: THAT HAS NOT BEEN FUNDED JUST YET.

COLLEEN O'DEA , THANK YOU FOR YOUR INSIGHT.

>>> NO DETAILS TODAY, BUT TAX REVENUE FROM LEGAL MARIJUANA COULD CHANGE THE STATES NEAR FUTURE FINANCES.

WITH MINUTES TO SPARE MONDAY, GOVERNOR MURPHY ENDED THE 3 YOUR STALEMATE OVER THE PROPOSAL, SIGNING KEY BILLS MAKING RECREATIONAL MARIJUANA OFFICIAL IN NEW JERSEY.

THAT DOES NOT MEAN YOU CAN GO OUT TODAY AND LEGALLY PURCHASE THE DRUG.

IT WILL TAKE MONTHS, MAYBE LONGER, TO GET LICENSED DISPENSARIES UP AND RUNNING.

WHAT SHOULD YOU EXPECT NEXT?

JOANNA GAGIS REPORTS.

>>> IT CLEARLY REDEFINES MARIJUANA IS NO LONGER A CRIMINAL SUBSTANCE IN NEW JERSEY.

>> Reporter: AFTER YEARS OF FASHIONING OUT AND A DEADLINE DATE DEAL, LAWMAKERS HAVE FINALLY FOUND A WAY TO LEGALIZE MARIJUANA, MAKING NEW JERSEY THE 13th STATE IN THE NATION TO DO SO.

GOVERNOR MURPHY SAYS THE PASSAGE IS A HUGE STEP FORWARD FOR SOCIAL JUSTICE.

>> NEW JERSEY IS BROKEN AND INDEFENSIBLE MARIJUANA LAWS, WHICH PERMANENTLY STAIN THE RECORDS OF MANY RESIDENTS AND SHORT-CIRCUITED THEIR FUTURES, AND WHICH DISPROPORTIONATELY HURT COMMUNITIES OF COLOR, AND FAILED THE MEANING OF JUSTICE AT EVERY LEVEL, SOCIAL OR OTHERWISE, ARE NO MORE.

>> Reporter: THE PACKAGE OF BILLS THE GOVERNOR SIGNED YESTERDAY ACCOMPLISHES THREE THINGS.

IT LEGALIZES USE FOR ADULTS 21 AND OLDER, DECRIMINALIZE IS UP TO MAC OUNCES OF MARIJUANA, AND A STICKING POINT THE NEWLY IMPLODED NEGOTIATIONS COME A A CREATES A SERIES OF PENALTIES WERE UNDER AGE USE.

>> IT WOULD BE TREATED MORE LIKE CIGARETTES THAN ANYTHING ELSE, BUT I ANTICIPATE THAT IN THE TIME TO COME IT WILL BECOME MORE MAINSTREAM, AND A LOT LESS PEOPLE IN THE CRIMINAL JUSTICE SYSTEM, WHICH IS WHAT WE WANT FOR THINGS THAT DON'T BELONG THERE.

>> Reporter: THE ATTORNEY GENERAL ISSUED NEW GUIDANCE YESTERDAY TO DISMISS ALL PENDING CHARGES FOR THOSE WHO HAVE BEEN ARRESTED BUT WHOSE CASES HAVE NOT YET BEEN HEARD BY THE COURTS.

AND NEW GUIDANCE FOR POLICE WHO CAN NO LONGER MAKE A STOP JUST FOR THE SMELL OF WEED.

REVEREND CHARLES BOYER SAYS ISSUES LIKE EXPUNGEMENT NEED TO BE HANDLED QUICKLY AND RETROACTIVELY, GOING BACK AT LEAST 10 YEARS.

>> THERE SHOULD BE SOME TYPE OF EXECUTIVE ORDER, AND SOME DIRECTIVE ON THE ATTORNEY GENERAL, WHICH REALLY PUTS OUT GUIDANCE AND RESTRICTS HOW ANY OF THIS INFORMATION CAN BE USED FROM A CIVIL RIGHTS STANDPOINT, EMPLOYMENT, THINGS LIKE HOUSING.

>> Reporter: THE STATE STILL HAS TO FORM A CANNABIS REGULATORY COMMISSION, WHICH HAS 6 MONTHS TO ORGANIZE BEFORE I CAN START ACCEPTING LICENSE APPLICATIONS.

A WOMAN OF COLOR WILL CHAIR THE COMMISSION.

>> THE NEXT CHAPTER IS OPENING UP THIS MARKET, WHERE WE START TO SEE THE DEVELOPMENT OF A MICRO GROW PROGRAM.

WE WILL SEE THE DEVELOPMENT OF SMALLER LICENSE OPPORTUNITIES, AND THE ABILITIES FOR SMALLER FOLKS TO GET CAPITAL.

>> Reporter: THE PROGRAM IS INTENDED TO BRING PEOPLE INTO THE INDUSTRY FROM, QUOTE, IMPACT ZONES, URBAN COMMUNITIES MOST IMPACTED BY THE WAR ON DRUGS, AND TO AVOID WHAT IS HAPPENED TO THE MEDICAL MARIJUANA ROLLOUT, WHERE LARGE, AS THE WHITE OUT-OF-STATE COUNTRIES COMPANIES ARE DOMINATING THE MARKET.

THE DEVIL IS IN THE DETAILS PEER >> EVEN AMONG THE MICRO LICENSES, THE FINANCIAL BARRIERS ARE STILL VERY HIGH FOR THE PERSON WHO WAS SELLING ON THE STREETS, IN THE UNDERGROUND MARKET.

LET'S BE VERY CLEAR, PEOPLE DON'T GROW UP AND SAY, I WANT TO BE A DRUG DEALER AND I JUST WANT TO DO THIS JUST BECAUSE.

IT IS AN ISSUE OF POVERTY.

SO WHEN YOU HAVE POTENTIAL BARRIERS TO COME INTO THE MARKET, ALL YOU ARE DOING IS EXACERBATING THAT.

>> Reporter: THE STATE WILL TAX AT 7% WITH MORE THAN HALF GOING TO THE IMPACT ZONES.

BOYER LIKE TO SEE MUNICIPALITIES USE THIS THEIR PORTIONS OF THE TAX TO INVEST IN SMALL TRAINING PROGRAMS TO PULL PEOPLE OFF OF THE CORNER AND ONTO MAIN STREET.

>> GIVE THEM THE DOLLARS NECESSARY TO BRING THEM INTO THE MARKET.

THEY ARE THE BEST ONES TO BE IN THE MARKET.

THEY ALREADY HAVE A CLIENTELE.

THEY KNOW HOW TO RUN A BUSINESS.

GIVE THEM THE STRUCTURES AND SUPPORTS TO BRING THEM INTO THE LEGALIZED, REGULATED MARKET.

>> Reporter: A MARKET THAT STILL NEEDS TO BE STACKED AND STRUCTURED.

WHILE IT MIGHT BE LEGAL, DO NOT EXPECT TO PURCHASE YOUR WEED LEGALLY ANYTIME SOON.

FOR NJ SPOTLIGHT NEWS, I'M JOANNA GAGIS.

>>> WE WILL SPEAK ONE-ON-ONE WITH THE MAIN SPONSOR OF THE LEGAL MARIJUANA BILL, SENATOR NIX COULD TERRY LIVE THURSDAY NIGHT AT 6:30 P.M. ON "CHATBOX".

I WILL BE FILLING IN FOR SENIOR CORRESPONDENT DAVID CRUZ.

THEN WE WILL TAKE A DEEPER LOOK AT THE GUIDELINES AND CLASHES AROUND SCHOOL REOPENING .

SEND YOUR QUESTIONS AHEAD OF TIME TO CHATBOX@NJSPOTLIGHTNEWS.ORG , AND WATCH IT ON THE NJ SPOTLIGHT NEWS YOUTUBE CHANNEL.

STRAW MAN ELSEWHERE TONIGHT, THE STRUGGLE TO SECURE A VACCINE APPOINTMENT WAGES ON AS SHIPMENTS DELAYED BY THE WINTER WEATHER SLOWLY TRICKLE IN AT LOCAL COUNTY AND MEGA SITES ACROSS THE STATE.

THE CALL CENTER IS STILL WORKING OUT KINKS WITH TRAINING AND SOFTWARE GLITCHES, AND THE DEPARTMENT OF HEALTH SAYS THERE IS NO HARD DATE FOR AGENTS TO BEGIN SCHEDULING APPOINTMENTS FOR RESIDENTS.

AS OF THIS MORNING, MORE THAN 1.7 MILLION SHOTS HAD BEEN PUT IN ARMS.

MORE THAN HALF 1,000,002ND DOSE IS.

NEW JERSEY ZONEIS READY TO GIVE THE ROLLOUT A BOOST.

THE PHARMACEUTICAL COMPANY SAYS IT CAN DELIVER 20 MILLION DOSES OF ITS SINGLE SHOT CORONAVIRUS VACCINE TO THE U.S. GOVERNMENT AT THE END OF MARCH.

THAT IS ASSUMING J&J IS GRANTED EMERGENCY USE APPROVAL FROM THE FDA .

THE PANEL COULD GIVE THE GREEN LIGHT AS EARLY AS THIS WEEKEND.

THE ANNOUNCEMENT COMES TO US THAN A WEEK AFTER WHITE HOUSE OFFICIALS CAUTIONED J&J'S INITIAL SUPPLY WOULD BE LIMITED .

A SPOKESPERSON FOR J&J SAYS THE COMPANY IS CONFIDENT IT WILL MEET THE AGREEMENT OF DELIVERING 100 MILLION DOSES BY THE END OF JUNE.

THIS IS THE U.S. DEATH TOLL CLIMBS TO THE HIGHEST IN THE WORLD, MORE THAN 500,000 LIVES LOST.

PRESIDENT BIDEN MARKING THE GRAMS MILESTONE WITH A CANDLELIGHT CEREMONY MONDAY EVENING.

HERE AT HOME, THE RATE OF NEW INFECTIONS IS IMPROVING WITH 2500 NEW POSITIVE TEST REPORTED STATEWIDE TODAY, AND ANOTHER 104 LIVES LOST.

>>> THE CITY OF NEWARK IS A BIG PART OF THAT PROGRESS.

FOR THE FIRST TIME SINCE THE SUMMER, NEWARK'S COVID-19 POSITIVITY RATE IS LOWER THAN THE STATES.

NOW DOWN TO 9.95%, THAT IS BASED ON A 3 DAY ROLLING AVERAGE THAT ENDED FEBRUARY 15th.

THE STATEWIDE AVERAGE SITS AT 10.8%.

IT WAS A TOUGH ROAD TO GET THERE.

YOU WILL RECALL THE MAYOR PUTTING IN PLACE CURFEWS FOR CITY RESIDENTS AND HARSHER RESTRICTIONS ON BUSINESSES AND THE REST OF THE STATE.

THOSE DECISIONS FOLLOW A 21% POSITIVITY RATE IN NOVEMBER, WHICH WAS NEARLY TWICE THE STATES AT THE TIME.

AND THE EASTWARD OF NEWARK WAS HIGHER AT 41%.

SINCE THEN THE MAYOR SAYS THOSE RESTRICTIONS WHERE BUSINESSES HAVE BEEN ABLE TO INCREASE CAPACITY, AND THERE IS A BIGGER PUSH TO ROLLOUT VACCINES IN THE COMMUNITY.

♪ >>> BEFORE WE GO, A LOOK AT WALL STREET TODAY.

THE TECH SELLOFF CONTINUES WHILE THE DOW WIPES OUT A 360 POINT LOSS.

HERE IS A LOOK AT THE TRADING NUMBERS.

>>> THAT DOES IT FOR US TONIGHT, BUT HEAD OVER TO NJSPOTLIGHTNEWS.ORG HIM OR ANY OF OUR SOCIAL CHANNELS TO CONTINUE FOLLOWING OUR REPORTING.

I'M BREANA VANNOZZI.

FOR THE ENTIRE NEWS TEAM, THANK YOU FOR BEING WITH US.

WE WILL SEE YOU TOMORROW.

>>> NJM INSURANCE GROUP , SERVING THE INSURANCE NEEDS OF RESIDENTS AND BUSINESSES FOR MORE THAN 100 YEARS.

AND HORIZON BLUE CROSS BLUE SHIELD OF NEW JERSEY, AN INDEPENDENT LICENSEE OF THE BLUE CROSS AND BLUE SHIELD ASSOCIATION.

>>> LOOK AT THESE KIDS.

WHAT DO YOU SEE?

I SEE MYSELF.

I BECAME AN ESL TEACHER TO GIVE MY STUDENTS WHAT I WANTED WHEN I CAME TO THIS COUNTRY -- THE OPPORTUNITY TO LEARN, TO DREAM, TO ACHIEVE, A CHANCE TO BELONG, AND TO BE AN AMERICAN.

MY NAME IS JULIA, AND I AM PROUD TO BE A NJEA MEMBER.