Gov. Mikie Sherrill’s proposed $60 billion budget is the most expensive in New Jersey’s history.

It includes a record $12 billion in school funding as districts across the state await their funding allotment, with school closures and local tax hikes on the table.

“It continues to fund the school formula with a record investment in K-12 education,” Sherill said. “But, everyone in this room knows we’re not getting the bang for the buck that we need.”

New Jersey Transit received over $1 billion, earmarked for creating a more “user-friendly app,” new vehicles and maintaining service.

Pensions are still fully funded at a cost of over $7 billion.

The governor explained the state’s budget gap by criticizing her predecessors and the federal government, which Republicans hit back on.

“I think it’s a little bit too early to be deflecting blame to the extent that Gov. Sherrill is deflecting,” said Assembly minority budget officer Brian Rumpf.

Seniors are among those who could see the biggest changes. Sherrill’s plan would reduce the maximum STAY NJ property tax reimbursements 38% from $6,500 to $4,000. She says it will save the budget $500 million, but it would increase some seniors’ taxes. The income limits to qualify for the STAY NJ program would also be cut in half from $500,000 to $250,000.

“With tax bills exceeding $10,000, $13,000, and even higher, it’s really hard for people to remain in their homes and not have to move out of the state,” said NJ AARP Director Chris Widelo.

Sherrill also promoted new charges for employers reliant on Medicaid and cuts in corporate tax breaks, frustrating the business community and Republican leadership.

“I think they’re cutting too close,” said NJBIA CEO Michele Siekerka. “We’re going to wind up hurting small businesses that are just starting to grow and not give them the opportunity of having the benefit of that.”

“Businesses don’t pay taxes,” said state Senate minority budget officer Declan O’Scanlon. “They pass all these taxes down onto everybody that buys their products and their services. So, this is not an affordability budget yet.”

Legislators will spend the coming months negotiating the final budget that is due by the end of June.