The proposal to lower income cap for Stay NJ eligibility and reduce maximum benefits has sparked controversy in New Jersey as property taxes continue to rise. According to NJ.com, the average property tax bill in the state has surpassed $10,000 for the second year in a row.
If approved in the final spending plan due on July 1, the income cap for Stay NJ eligibility would be lowered to $250,000 from the current $500,000 limit. Additionally, the maximum combined benefit from Stay NJ and other property tax relief programs would shrink from $6,500 to $4,000.
Congresswoman Sherrill defended the proposal, highlighting a focus on providing more relief to low- and middle-income senior renters. She stated, “Stay NJ is a great program, but (the adjustments) will target more relief to low- and middle-income senior renters. That’s a fairer, more efficient use of taxpayer money.”
However, advocates for seniors have raised concerns about the potential consequences of these reductions. Chris Widelo, the state director of AARP New Jersey, warned that the proposed cuts could force seniors out of their homes, emphasizing the importance of maintaining meaningful relief for those who rely on these programs.
The proposed changes would impact homeowners across the state, with some facing noticeable losses in savings. For example, a senior homeowner with a $15,000 property tax bill could lose $2,500 in savings under the new rules. Even those earning over $250,000 annually would lose the benefit entirely if they had been receiving the maximum amount.
Despite the reductions, the state Treasury Department estimates that about 90% of the current 438,000 homeowners eligible for Stay NJ would still qualify for some level of benefit.
In addition to changes to Stay NJ, adjustments are also proposed for the state’s ANCHOR program. While base payments would remain the same, senior homeowners would no longer receive the $250 bonus payment, while senior renters would retain this additional benefit.
The $350 million Senior Freeze program, which provides property tax reimbursement for eligible seniors and people with disabilities, is expected to continue unchanged.
Overall, the three programs together are projected to cost the state a record $4.2 billion, despite the reductions to Stay NJ benefits.