“We’re looking to maintain a strong surplus that protects us in the future and invest in programs that reflect who we are,” he said.

Gov. Phil Murphy’s proposed $58.1 billion budget, currently being reviewed by the Legislature, includes a $6.3 billion surplus, nearly $12 billion for public education, $4.3 billion in tax relief, and $11 billion in business tax incentives.

Complicating matters is uncertainty around federal funding for programs like Medicaid, Medicare, and SNAP, Coughlin said. “If they cut $10 billion, how do we fill that without increasing taxes?” he asked.

There are already tax increases in the proposed budget on gaming, recreational activities, cell phone bills, real estate, and cannabis purchases, as well as the new $2-per-truck fee on warehouse deliveries.

There is, however, some good news: State revenues are currently exceeding expectations by $400 million. That extra income could allow lawmakers to eliminate some unpopular tax proposals. “One thing we will not do is the tax on recreational activities like golf and bowling,” Coughlin said.

He reaffirmed education as a priority, calling the nearly $12 billion in school funding “a smart investment that pays off,” and emphasized the value of property tax relief.

“I’m confident we’ll get it done by June 30,” he said.