The $56.6 billion budget that Governor Phil Murphy signed Friday night includes $220 million for StayNJ, a senior citizen tax break designed to help older residents stay in New Jersey.

Although the new budget did not meet the targets set in the law last year, StayNJ will still receive the money because the budget language allows for a workaround. The bill that authorized StayNJ specified that the program could only go ahead if the state could fund the program and meet its school funding and pension payment obligations, maintain property tax deduction programs and run a budget surplus of at least 12%.

Although the budget does not meet the surplus requirements, the budget language eliminated the benchmarks so that the program would still have an additional $220 million in funding.

The plan is expected to cost about $1.3 billion annually and would benefit residents over the age of 65 with incomes of no more than $500,000. About 90 percent of those eligible would earn less than $200,000. Under the initiative, property taxes for seniors would be cut in half, with the benefit capped at $6,500.

How does StayNJ work?

A task force issued recommendations in May on how to implement the plan, including the application process and the timing of payments.

The task force’s recommendations included:

• A one-year residency requirement, a minimum age of 65 as of December 31 of the benefit year and that the laws implementing these changes come into force by November 3 of this year at the latest and the application is available from February 1, 2025.

• They recommend that payments be made by check or bank transfer in the first year and that the Ministry of Public Affairs and the Ministry of Finance develop a standard application package to be sent out with the tax bill in November at the latest. The report then recommends that authorities “work towards the effective implementation of a credit process for the coming years.”

What is the goal of StayNJ?

According to a report released in March by Monmouth University's polling institute, nearly half of New Jersey residents said they would like to move out of the state at some point, with many citing the high cost of living as the main reason.

But the survey found that 45 percent of state residents would be more likely to stay if the StayNJ program were implemented; 53 percent said the StayNJ program would not change their decision, suggesting the initiative is partially having the desired effect.

This article originally appeared on NorthJersey.com: Seniors Tax Refund StayNJ Gets $220 Million in New Jersey State Budget for 2025