Should new senior citizen tax cut plan stay or go? Governor candidates are split

Yahoo

17-04-2025

Senior citizens are expected to begin getting Stay NJ tax credits next year — but the 11 people hoping to be our next governor are split on whether the program will work. (Illustration by Alex Cochran for New Jersey Monitor)
New Jersey's next governor may inherit a new property tax cut program aimed at seniors, but the candidates don't all embrace it as is.
Some of the 11 candidates hoping to become our next chief executive say income limits for the program — called Stay NJ — are too generous. Others worry the state's uncertain fiscal outlook makes the program unfeasible unless it's revamped. One candidate, Republican Bill Spadea, called Stay NJ a 'gimmick' that should be eliminated outright.
'We cannot continue with smoke and mirrors that shift the tax burden from one group to another while calling it a tax cut,' Spadea said in a statement from his campaign.
Democratic lawmakers have been promising Stay NJ for years, saying it will be essential to keep senior citizens from fleeing to states with lower taxes. But budget experts have issued private and public warnings about the program's price tag, which is expected to top $1 billion annually.
'The state just can't afford to pay for it,' Richard Keevey, a former state budget director and comptroller, told the New Jersey Monitor.
StayNJ was signed into law by Gov. Phil Murphy in 2023, but it is not scheduled to begin delivering payments to eligible taxpayers until 2026. The program will offer homeowners 65 and over tax credits to make up for half of their property tax bills, capped at $6,500. Homeowners must make less than $500,000 annually to qualify.
Stay NJ payments could go out just as a new governor takes office in January. Murphy, a Democrat, cannot seek a third term this November, and six Democrats and five Republicans are running to succeed him.
Newark Mayor Ras Baraka, a Democrat, has called Stay NJ 'inherently flawed and regressive.' In a statement from his campaign, Baraka said it 'must be overhauled or dismissed,' and took aim at the program's half-a-million-dollar income limit.
'We need to direct government resources toward lifting all boats, not just those already floating comfortably. That means capping rents, building more housing, and investing in real solutions for affordability across the board. Our state budget should reflect our values: working people, not the wealthy, should be first in line for help,' he said.
Two of Baraka's Democratic rivals — Jersey City Mayor Steve Fulop and Rep. Mikie Sherrill — noted that statutory language bars the state from issuing Stay NJ payments if certain fiscal goals are not met, like maintaining a surplus that is at least 12% of annual spending (lawmakers could override that provision, and did last year).
Speaking at a press conference in Edison this week, Fulop said 'of course we're not going to stand in the way of a 50% tax reduction for residents' if the state finds a way to fund Stay NJ while keeping its surplus above 12%. But the more likely outcome, he said, is that the program won't work.
Fulop has proposed either restructuring Stay NJ by lowering the income threshold to $150,000 and making the award a flat amount based on income rather than a percentage of property taxes paid, or implementing a new program to provide all homeowners with a single tax credit that limits a homeowner's property taxes 'to an affordable percentage of their income.'
'We're going to clean that up to make sure there's real property tax reform for residents here throughout New Jersey,' he said.
Sherrill told reporters in Bloomfield last month that she thinks StayNJ is a 'great program' for seniors. But in a statement from her campaign on Wednesday, she noted the state's budget issues.
'We have no way to know what state revenues will look like in 12 to 15 months or how much needed federal funding will be ripped away by Trump. However, there are things we must do like fully fund the pension system and protecting direct property tax relief is of equal importance. It is the most direct way our state government can create affordability for New Jerseyans,' Sherrill said.
Rep. Josh Gottheimer (D-05) has pledged to cut all New Jerseyans' property tax bills by a dramatic 15%. Gottheimer in a statement from his campaign said he supports Stay NJ, but wants to add additional tax relief, including a $1,000 'senior bonus' for seniors who have lived in New Jersey for at least a decade before turning 70 and an annual tax rebate for renters.
'I'm the only candidate with a tax cut plan that meets our pension obligations, tackles our structural deficit, and is fully paid for without cutting the important programs and services Jersey families and seniors rely on,' he said.
Democrat Sean Spiller, president of the statewide teachers union, said he supports StayNJ. Spiller said in a statement from his campaign that he wants to streamline the state's multiple tax credit programs and make sure benefits get to people who need them most 'without the challenging layers of bureaucracy and redundancies.' Stay NJ benefits would be paid out only if homeowners do not already see their tax bill cut in half by the existing Anchor and senior freeze tax relief programs.
Former state Sen. Steve Sweeney, a Democrat, announced Wednesday he wants to slash the income limit for Stay NJ to $250,000 and eliminate income tax for seniors 65 and up with annual incomes of $250,000 or less. He calls his plan 'Stay NJ Plus.'
'Our seniors deserve the peace of mind that comes with financial stability,' Sweeney said in a statement from his campaign. 'By capping the Stay NJ program at $250,000, we can ensure a fair distribution of resources while continuing to support the goal of keeping our cherished residents in their homes.'
Republican Mario Kranjac, a former mayor of Englewood Cliffs, is open to keeping Stay NJ on a transitional basis,' but if elected governor, he would aim to cut spending and slash taxes, 'making the State more affordable for everyone without special programs primarily designed to buy votes,' said his campaign manager, Michael Byrne.
Republican state Sen. Jon Bramnick said he supports Stay NJ and believes senior citizens deserve tax relief.
'I still support the program but if the Democrats were truly serious about reducing the property tax burden they would have started the program immediately, not three years after passage,' Bramnick said.
Former Assemblyman Jack Ciattarelli, a Republican, did not respond to a request for comment.
Dana DiFilippo contributed.
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