Governor Phil Murphy today delivered his second annual Budget Address to the New Jersey State Legislature. In his address, Governor Murphy proposed a $38.6 billion State budget for State fiscal year 2020. The budget, which now heads to the legislature for consideration, includes over $1.1 billion in savings including expected reductions in State healthcare spending and $200 million in savings from government efficiencies.

 

His budget also includes a proposal to increase personal taxes on individuals earning more than $1 million annually. The proposal would account for $447 million in additional revenue if enacted by the Legislature. The increase follows last year's budget agreement that raised individual income taxes on persons earning more than $5 million annually and State corporate business taxes (CBT). The 2020 budget does not, however, propose further CBT increases.

 

Governor Murphy proposed several other items with impact on the State's life sciences sector. The budget proposed a budget-neutral increase in the State's Angel Investor Tax Credit program -- a longtime BioNJ priority. 

" This program has been proven to work in numerous states across the country in a very dramatic way with increases in the number of high paying jobs and attraction and creation of start-ups," said BioNJ President and CEO Debbie Hart. "The program in New Jersey has been successful and has attracted new investors and startups and we are confident that with this increase in the percentage, additional innovation will ensue. BioNJ commends the Governor and we hope that the Legislature will support this important proposal."

The reactivated Commission on Science, Innovation and Technology is also supported in the proposed 2020 budget.

The budget also supports the proposed New Jersey Evergreen Fund, a public-private co-investment fund to encourage early investment in innovative New Jersey companies. The proposal looks to cap all "incentive" programs at $400 million per year, with the proposed NJ Forward Program -- a planned successor to the current Grow NJ program -- capped at $200 million.

 

The proposed budget also allows for $2 million for the State's Chief Innovation Officer to modernize key government services and work with the private sector to improve access to information and services. 

 

"BioNJ supports measures aimed at ensuring our State's life sciences ecosystem continues to be a global leader in developing the next generation of therapies and cures. Proposals that support the industry writ large and encourage early investment in emerging companies merit support," said Hart. "We look forward to working with Governor Murphy, Senate President Sweeney and General Assembly Speaker Coughlin to maintain and grow our State's life sciences sector." Because Patients Can't Wait ® .

 

Click here for a copy of the "Budget in Brief".

Please contact John Slotman, BioNJ Vice President, Government Affairs, at [email protected] or 609.890.3185 should you have any questions.