Public Administration
State Hiring and Spending Freezes to Address Budget Deficit – Earlier in October and again last week, Governor Phil Murphy issued notices to all state departments, calling for a pause on discretionary pay raises, limits on new hiring, and spending cuts to address New Jersey’s structural budget deficit. These measures come after years of increased state spending on public education, property tax relief, and employee pensions, with the annual budget rising from $34.7 billion in fiscal year 2018 to $56.6 billion this year. The Office of Management and Budget has directed departments to identify 5% in budget savings for the upcoming fiscal year. While some legislators have supported these cost-cutting efforts, others raised concerns about how staffing freezes could further strain certain government services. The governor’s final budget proposal is expected to be released in February 2025.
Pay Transparency Bill Signed into Law – Governor Phil Murphy signed into law Bill S2310, which requires all New Jersey employers with more than 10 workers to disclose both a compensation range and benefits in any job postings as well as requiring employers to disclose promotional opportunities to existing employees. Employers who are found in violation will receive a $300 fine for first-time offenders and $600 for subsequent offenses. The law will go effect on June 1, 2025.
Economics
Outdoor Dining Made Permanent in New Jersey – On November 25th, Governor Phil Murphy signed Bill S3608 (P.L.2024, c.95), making outdoor dining a permanent option for restaurants and certain alcohol retailers in the state. Under the new law, businesses can indefinitely expand operations to sidewalks, patios, and other outdoor spaces, which were first introduced temporarily during the COVID-19 pandemic. Restaurant owners, business advocates, and organizations such as the Economic Development Authority and Downtown New Jersey praised the measure. They claimed that it would boost economic activity and small business sales, as well as revitalize downtowns and local communities.
Transportation
Federal Government Approves New York City Congestion Pricing Plan – On November 22nd, the Federal Highway Administration granted final approval for New York City’s congestion pricing plan, which is set to take effect on January 5th. The plan will charge most drivers a $9 toll to enter Manhattan south of 60th Street. The city will then use the revenues to fund upgrades to the public transit system as well as reduce traffic congestion and greenhouse gas emissions. Governor Phil Murphy and other New Jersey legislators expressed continued opposition to the measure, arguing the toll unfairly burdens New Jersey commuters. New Jersey sued the federal government to block New York’s congestion pricing plan back in June 2023.