In a deal announced late on June 30, the governor of New Jersey and the leaders of the legislature said that they had reached agreement on the state's budget, avoiding a shutdown of nonessential services which might have begun at midnight. The legislature was scheduled to vote on the plan at 8 am on Sunday, July 1. The governor had haggled with the legislators over how to fund budget increases that the governor said are vital to moving the state forward, including increased funding for NJ Transit. The immediate effect on NJT funding was not clear, but the governor appeared to have won a number of his proposals for increased revenue and so may be in a position to deliver on at least some of his promises to increase NJT funding

The agreement as reported by nj.com includes increased tax rates on personal income over $5 million, and on corporate income over $1 million. The affected corporations will pay a 2.5% tax surcharge this year and next year. Governor Murphy had asked for the personal tax hike to kick in at just $1 million, the so-called "millionaires' tax," so he did not get all of what he asked for, and the business tax surcharge will apparently phase out after four years. A proposed increase in the state sales tax rate was not included in the compromise package.

The Lackawanna Coalition believes that a dedicated funding source for transit is essential to continued operation and growth of a healthy transit system. Some of the agreed funding sources appear to be temporary in nature, so it's not clear that Governor Murphy has been able to secure a dedicated transit funding source.