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New Jersey Democratic Gov. Phil Murphy on Tuesday unveiled a $53.1 billion budget for fiscal year 2024, about 5% more than the spending plan he signed for the current year, proposing more school aid, a renewed property tax rebate program and billions more for public pensions, transportation and other projects.

Murphy, who won a second term as governor in 2021, cast the budget as a helping hand to residents facing risings costs and fallout from COVID-19.

‘First it was the pandemic, and now it is inflation. You’ve been paying more for everything from gas to groceries, and your paycheck hasn’t kept up,’ he said. ‘This entire budget is purpose-built to help you find your place in the next New Jersey by securing your place in the New Jersey of right now.’

The governor announced his plan during a speech in the Democrat-led Legislature’s Assembly chamber, an annual tradition that halted during the height of the COVID-19 outbreak. New Jersey’s constitutional deadline to enact a balanced budget is June 30.

Murphy is seeking to carry out campaign promises he made in his first gubernatorial run: For a third straight year, he has proposed making a full payment to the state’s public pension fund. That would be about $7 billion, up $250 million from last year. The pIan would finance K-12 education according to a formula approved by the state Supreme Court, increasing funding about 8% to $10.75 billion. The governor also wants to hold New Jersey Transit fares flat and set aside about $1 billion for universal pre-K, up $110 million over the current year.

The proposal includes no tax increases.

Murphy campaigned for office in part on raising income tax rates on people making more than $1 million, a promise he and lawmakers fulfilled in 2020. That year’s budget also increased business taxes by 1 percentage point, a raise designed to expire after four years. That time’s is up, and Murphy isn’t seeking to renew the higher tax rate.

The governor also aims to renew a property tax rebate program for a second year, part of his push to cast the state as more affordable. The program carries a $2 billion price tag and promises families making up to $150,000 a rebate check of $1,500. Those earning from $150,000 to $250,000 get $1,000 in rebates. Continuing last year’s assistance for renters, those making up to $150,000 would get $450. The program would help an estimated 1.5 million households.

New Jersey has among the highest property taxes in the nation, averaging about $9,500 a year.

Republicans — in the minority in the Legislature but emboldened after picking up seven seats in 2021 — panned the proposal, calling on the governor to cut taxes.

‘When the state is flush with money, there’s no excuse for Governor Murphy to continue ignoring tax relief that would make a big difference to families and businesses struggling with inflation,’ Senate Republican Steve Oroho said.

Murphy’s proposal must first progress through the Legislature, which can alter it before the governor signs it into law. All 120 state lawmakers are on the ballot this November.

This post appeared first on FOX NEWS

Leaders of the Republican minority at the Minnesota Legislature rolled out a $13 billion ‘Give It Back’ plan Tuesday to tap most of the state’s $17.5 billion budget surplus for one-time and permanent tax cuts, including rebate checks and fully eliminating taxes on Social Security.

The GOP plan would use one-time money for rebate checks of $1,250 for individuals and $2,500 for joint filers, plus tax credits of $1,800 per child for the next two years. For permanent relief, it would end the state’s partial taxation of Social Security income, cut income tax rates and raise exclusions for property taxes.

Republicans announced their plan a day after state budget officials released an updated forecast showing that the surplus has remained stable, with higher-than expected revenues neatly offsetting a new law requiring that inflation be factored into spending projections.

Senate Minority Leader Mark Johnson, of East Grand Forks, said at a news conference that the surplus provides a historic opportunity to return the money to taxpayers.

‘With over $17.5 billion, if we don’t give tax relief to Minnesotans now, when would we?’ asked House Minority Leader Lisa Demuth, of Cold Spring.

Republicans want deeper cuts than Democratic Gov. Tim Walz and Democratic legislative leaders have proposed and would return more of the surplus to taxpayers instead of spending it on education and other programs as many Democrats want.

While Republicans don’t have the votes to pass their plan as is, they still have leverage they could use to try to get some of what they want. That is because lawmakers on both sides want to pass a public infrastructure borrowing package known as a bonding bill. But raising the state’s debt load requires 60% supermajorities in both the House and Senate. And that would require several Republican GOP votes in each chamber.

Johnson said Senate Republicans want a bonding bill, but they also want assurances of tax relief before they commit themselves to details of that package. Demuth said bonding and tax relief are ‘part of the same conversation.’ Neither leader, however, would get specific about potential trade-offs.

The GOP tax plan, which would cost $13 billion over two years compared with the $5.4 billion that Walz proposed last month, has similarities that could be starting points for negotiations.

Walz called for rebate checks of $2,000 for families with incomes below $150,000, and $1,000 for single filers making less than $75,000. Parents could also get an extra $200 for each dependent — up to three. Those making more than the income caps would get nothing, He would lower taxes on Social Security for more than 350,000 households so that 43% of households receiving it would save an average of $278. And he called for up to $10,500 in expanded tax credits for families with kids.

The governor said Monday that his proposal would represent ‘the largest tax cut in Minnesota’s history.’ As for the GOP’s ‘Give It Back’ slogan, he said, ‘Join the crowd.’ But he said it ‘makes no sense’ to eliminate Social Security taxes for the wealthy.

Minnesota is one of 11 states that tax Social Security to varying degrees. Demuth noted that even some Democrats campaigned last year in favor of full repeal. GOP Rep. Kristin Robbins, of Maple Grove, said their proposal would give 472,000 Minnesotans an average of $1,277.

For the permanent tax cuts, full elimination of income taxes on Social Security would cost about $1.26 billion per two-year budget period going forward, said GOP Sen. Bill Weber, of Luverne, while the 1% income tax rate reductions for the bottom two brackets would cost about $3 billion. The property tax breaks — from raising the state’s homestead value exclusions — would cost about $70 million every two years.

For the one-time relief, the rebate checks would cost about $5 billion, Weber said, while the child tax credits would cost about $4 million.

This post appeared first on FOX NEWS

The state of Oregon is weighing a bill to give homeless and low-income people $1,000 a month in universal basic income.

The Oregon state legislature is considering a bill to establish a People’s Housing Assistance Fund Demonstration Program through the state’s Department of Human Services.

Oregon’s bill is the latest in blue states looking to give handouts to people in universal basic income programs.

According to Bill Track 50, the legislation would ‘provide 12 monthly payments of $1,000 to individuals who are experiencing homelessness, are at risk of homelessness, are severely rent burdened or earn at or below 60 percent of area median income.’

The bill would require a study on who is receiving the money broken down among a few demographics, including race, veteran status, and risk of domestic violence.

Additionally, the bill sunsets in January 2026.

The $1,000 payments can be used at recipients’ discretion, but supporters say it will be used toward rent and other living expenses.

However, that discretion could backfire as some recipients to use the money for other costs like alcohol or drugs.

Oregon is not the first place to consider universal basic income payments.

A California city is planning to give universal basic income (UBI) to transgender and nonbinary residents.

Transgender residents in Palm Springs, California are eligible to receive a UBI of up to $900 per month solely for identifying as transgender or nonbinary — no strings attached.

The new pilot program will have $200,000 set aside for allocation after a unanimous vote by the Palm Springs City Council last week.

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Sens. Marco Rubio, R-Fla., and Mark Warner, D-Va., expressed displeasure following a ‘Gang of Eight’ briefing by the intelligence community on the alleged mishandling of classified documents by the executive branch, saying in a joint statement following the briefing that it ‘left much to be desired.’

The Gang of Eight received a classified briefing from the administration Tuesday on the classified documents found at the respective homes of President Biden and former President Donald Trump. Director of National Intelligence Avril Haines briefed the lawmakers along with representatives from the Department of Justice.

‘In accordance with our responsibility to oversee the Intelligence Community and protect our national security, today we met with leaders from the IC and the Justice Department to discuss the exposure of classified documents,’ read a joint statement after the briefing by Senate Intelligence Chairman Warner and Ranking Member Rubio.

‘While today’s meeting helped shed some light on these issues, it left much to be desired, and we will continue to press for full answers to our questions in accordance with our constitutional oversight obligations,’ they added.

The Gang of Eight includes the chairmen and ranking members of the Senate and House Intelligence Committees and the top leaders in Congress – Senate Majority Leader Chuck Schumer, D-N.Y.; Senate Minority Leader Mitch McConnell, R-Ky.; House Speaker Kevin McCarthy, R-Calif.; and House Minority Leader Hakeem Jeffries, D-N.Y.

President Biden is currently under federal investigation for his handling of classified documents after they were found at Biden’s residence in Delaware as well as his private office at a think tank in Washington, D.C.

The FBI searched two of Biden’s Delaware residences, which found classified documents dating back to the Obama administration and Biden’s time in the Senate in several unsecured areas. The Justice Department has appointed a special counsel to investigate the documents.

The Justice Department has also appointed a special counsel to investigate Trump after hundreds of documents marked as classified were found at his Mar-a-Lago estate in Palm Beach, Florida.

Former Vice President Mike Pence also disclosed that classified documents were found in his Indiana home.

This post appeared first on FOX NEWS

West Virginia’s Republican state auditor announced Tuesday that he will run for governor next year.

JB McCuskey is in his second term as auditor. The Harrison County native also spent four years in the House of Delegates.

Candidates can officially file to run for office next January. Republican Gov. Jim Justice is barred by state law from seeking a third consecutive term.

Six other Republicans have filed papers with the secretary of state’s office to raise money for a gubernatorial campaign. No Democrats have announced plans to seek the office.

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President Biden said that ‘MAGA Republicans’ are a ‘different breed of cat’ during a speech on Tuesday.

Biden made the comments during a speech discussing affordable health care in Virginia Beach.

‘My plan that’s in stark contrast is to, not, by the way, there’s an awful lot of really good Republicans, but the MAGA Republicans are a different breed of cat. Now, they’re not bad or good or just very they’re very different. There’s kind of like, in my view, sort of two Republican parties. And I’ve served a long time,’ Biden said.

Biden used the speech to accuse Republicans of putting health care programs ‘on the chopping block’ ahead of the White House rolling out his budget proposal.

Previously, Biden has claimed that ‘MAGA Republicans’ threaten the country.

‘Donald Trump and the MAGA Republicans represent an extremism that threatens the very foundations of our Republic,’ Biden said during a speech on Sept. 1, 2022. ‘MAGA Republicans do not respect the Constitution. They do not believe in the rule of the law. They do not recognize the will of the people. They refuse to accept the results of a free election.’

His comments come as Republicans and Democrats are trying to negotiate spending priorities before a deadline to raise the debt ceiling.

When pressed on Sept. 2, 2022 by Fox News’ Peter Doocy, Biden said that Trump supporters aren’t a ‘threat’ to the U.S.

‘Donald Trump and the MAGA Republicans represent an extremism that threatens the very foundations of our Republic,’ Biden said. ‘MAGA Republicans do not respect the Constitution. They do not believe in the rule of the law. They do not recognize the will of the people. They refuse to accept the results of a free election.’

During the speech, Biden also said he was ‘pleased’ to see ‘so many’ Republicans stand up when he said ‘Some Republicans want Social Security and Medicare to sunset’ during the State of the Union.

‘Maybe they found religion on Social Security, Medicare. I sure hope so. All kidding aside. But I believe when I see it,’ Biiden said of Republicans.

On Tuesday, the White House released a fact-sheet claiming ‘virtually every Republican budget or fiscal plan over the last decade has included repeal of the Affordable Care Act (ACA) and deep cuts to Medicaid.’

Fox News’ Caitlin McFall, Tyler Olson, and Chris Pandolofo contributed to this report.

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FBI Director Christopher Wray said the COVID-19 pandemic was likely caused by a lab leak in Wuhan, China.

‘The FBI has for quite some time now assessed that the origins of the pandemic are most likely a potential lab incident in Wuhan,’ Wray told Fox News in an interview that aired Tuesday. ‘Here you are talking about a potential leak from a Chinese government-controlled lab.’ 

‘I will just make the observation that the Chinese government, it seems to me, has been doing its best to try to thwart and obfuscate the work here, the work that we’re doing, the work that our U.S. government and close foreign partners are doing. And that’s unfortunate for everybody,’ he added.

Wray said the FBI has specialists who focus on ‘the dangers of biological threats, which include things like novel viruses like COVID, and the concerns that they [are] in the wrong hands [of] some bad guys, a hostile nation state, a terrorist, a criminal.’

He also said that the Chinese government has been trying to block investigative work into the origins of the coronavirus.

Wray’s comments come after the Department of Energy has also recently assessed that the COVID-19 pandemic was likely caused by an accidental lab leak in China.

The development was included in an update to a 2021 document made by Director of National Intelligence Avril Haines’s office.

The National Intelligence Council as well as four other government agencies assess at ‘low confidence’ that COVID-19 originated as a result of natural transmission from an infected animal, but the CIA and other government agencies remain undecided.

According to the report, there’s a consensus between intelligence agencies that the pandemic wasn’t the result of a bioweapons program by China.

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The first hearing held by the House China Select Committee on Tuesday night was disrupted by protestors holding signs reading ‘China is not our enemy,’ and ‘Stop Asian hate.’ 

Two protesters appearing to be affiliated with the anti-war group ‘Code Pink’ interpreted one of the panelists of the hearing, former National Security Advisor H.R. McMaster, during his opening remarks. 

One woman stood up during McMaster’s remarks holding a sign reading ‘China is not our enemy’ was escorted out by Capitol police as she was yelling at committee members. 

Moments later, a man stood up in the audience holding a sign saying ‘Stop Asian hate,’ also yelled at committee members while being escorted out of the room by Capitol police officers. 

Committee Chairman Mike Gallagher, R-Wis., noted to the protester that his sign was ‘upside down,’ as he was ushered out.

Both signs were labeled by ‘Code Pink,’ a left-wing activist group focused on ending foreign wars.

McMaster continued by suggesting that the protesters may be a result of Chinese propaganda.

‘I think these eruptions are indicative of really the effect that the United Front Work Department has had,’ McMaster said. 

‘And maybe we can talk more about that during the course of the hearing. I think they have reinforced to some degree what you might call a bit of a curriculum of self-loathing that has taken hold in academia for many years. They, they reinforce, I think, the idea that America is the problem in the world and only if America disengages or in this case becomes more passive that things will get better,’ he added.

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In this episode of StockCharts TV’s Sector Spotlight, I assess the current state of sector rotation, highlighting the ongoing rotation out of defense in favor of more offensive and economically-sensitive sectors. As it is the last Tuesday of the month, seasonality make ups a big part of the show, including a look at the seasonal pattern for the S&P itself, then zooming in on a few sectors that historically have strong or weak seasonal tendencies. We will see whether we can align that with the current rotations.

This video was originally broadcast on February 28, 2023. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight page, or click this link to watch on YouTube. You can also check out the video on the StockCharts TV on-demand website StockChartsTV.com, or on the associated app on mobile platforms like iOS and Android, or TV platforms like Roku, Apple TV, Amazon Fire TV and Chromecast.

Sector Spotlight airs weekly on Tuesdays at 10:30-11:00am ET. Past episodes can be found here.

#StaySafe, -Julius

The ink has not yet been applied to Manny Machado’s 11-year, $350 million contract extension and yet the concerns abound.

What, exactly, are the Padres going to do in 2033 with a third baseman, Machado, and a shortstop, Xander Bogaerts, due to make $56.8 million, when both are 40 years old and possibly better suited for pickleball than Petco Park?

They are pragmatic, well-founded questions posed by fans and media alike as baseball propels into yet another unprecedented fiscal era. And they are about as relevant as the Padres’ 2023 concerns about Eric Hosmer, starting first baseman.

Who’s that, you ask?

Ah, yes, Hosmer. While many herald Machado’s 10-year, $300 million pact with the club in February 2019 as the turning point for the franchise, it’s easy to forget that Hosmer’s eight-year, $144 million deal signed before the 2018 season officially signaled that San Diego was open for business. Procuring the then-28-year-old was a credibility signing, a culture signing, never mind that he’d be 35 and likely a well-below-average offensive profile by the time his deal expired.

Well, Hosmer is 33 now, and already he’s an ex-Padre. He was traded to Boston last August, the Padres assuming all $44 million still owed him, his services no longer required as the Padres sought someone better. Way back when, you heard a lot of concerns about the likelihood of dead money and the concerns Hosmer’s deal would be an albatross.

Yes, the Padres are paying him not to play for them. Yet the Hosmer deal is far from an albatross, and there’s a very good chance public sentiment will shift that way when Bogaerts, Machado, Fernando Tatis Jr. (now in Year 3 of a 14-year, $340 million deal) and ace Yu Darvish (recipient of a $108 million extension this month) have aged out of their value.

Let’s explore.

Balancing the books

We get it: Baseball’s getting weird again. Runaway revenues paired with devil-may-care owners in places like Flushing, Philly and the Gaslamp Quarter makes it seem like financial Armageddon or at least a payroll hangover are imminent. In addition, industry obsession with the luxury tax payroll has forced clubs to offer contracts almost absurd in length, the better to lessen current and future penalties.

Yet we often lose sight of a club’s actual payroll, whether deals are front- or backloaded and a club’s ability to manage its budgets. Take Hosmer: His average annual value is $18 million, but in the first five years of the deal, the Padres paid him $20 million per season along with a $5 million signing bonus. This year, he will cost just $13 million – which suddenly doesn’t seem so bad, about the cost of an injured mid-rotation starter, say.

And so it will be with the Padres’ long-term quartet. Tatis is making just $7 million this season, while Darvish is due $24 million. That will just about flip in 2026, when Tatis receives $20 million and Darvish $15 million.

Let’s think about 2026 for a moment: Bogaerts and Machado will both be 33, still likely in their primes or close to it and probably still playing their intended positions. Tatis will be just 27 and while Darvish turns 40, his role – workhorse starting pitcher – will likely be even more a dying breed and an expensive buy on the market.

While we don’t yet know the yearly breakdown for Machado’s extension, the projected combined salary of that quartet in 2026: $91.8 million.

Now consider this: In 2023, the New York Mets will pay Max Scherzer, 38, and Justin Verlander, 40, $86.6 million. Four players for the price of two at 2023 prices suddenly doesn’t seem so bad, eh?

Especially when we consider the inevitability of inflation.

Big money only gets bigger

Oh, inflation looks a lot different for these guys than you and I when we queue for oat milk or hamburgers. Yet let’s not forget the reason Machado is receiving his colossal deal is due to a pending opt-out clause in the $300 million deal he signed in 2019.

A deal that already looks wildly outdated.

Machado has more often been an MVP-caliber player since landing in San Diego, and he certainly noticed when AL MVP Aaron Judge – two months his senior – received $360 million this winter even without Machado’s track record. Lest we forget, Shohei Ohtani will be on the market this winter and, barring injury, will reset what big, big money really looks like.

Even the Padres’ own Juan Soto – and owner Peter Seidler has not ruled out retaining him, too – will set a bar close to $400 million when he’s on the market in two seasons.

Strange as it may seem, while the Padres certainly added to their future obligations, they also ensured some measure of cost certainty in coming years.

New model, same big money?

And that brings us back to the endless pile of cash flowing into the league. Way back in 2018, when the Padres began writing checks requiring multiple commas and many zeros, Major League Baseball had just exceeded the $10 billion mark in annual revenue. It nearly reached $11 billion in 2022.

Now, you say there are warning signs with regard to regional sports networks, bankruptcies and billion-dollar deals in peril? Oh, the imminent implosion of Bally Sports and Warner Bros.’ desire to exit the space are concerning; it spurs hope (among fans) that the streaming future will arrive sooner than later, and fears (in the baseball industry) that the backbone of its revenue model is already creaking as more than half its clubs are tied up in deals with these entities.

Yet the short-term concerns probably don’t destroy the bigger-picture model just yet. Consider that the Dodgers ($8.35 billion, Spectrum), Phillies ($2.5 billion, Comcast) and the Mets and Yankees (whose broadcasts are on team- or former-owner operated networks) remain the aspirational model. Word on the street is those clubs did OK this winter.

There may be short-term pain, but the value of live sports and baseball’s massive and largely unchallenged inventory remain huge assets. MLB’s ability to keep some RSN model alive while facilitating a streaming future will require significant finesse, but the value of its national rights is a solid foundation upon which to build.

As for the Padres and 2033? Hey, who knows what a “large payroll” or a “big salary” or a “luxury tax threshold” or even the game itself will look like? For all we know, the Padres could be preparing for a season opener at Portland in “MLB Quad Four Left” instead of another year in the National League West. And they’d have some nice expansion fees to pocket from two new franchises.

Either way, there almost certainly will be more money flowing and salaries rising ever more. The Machado-Bogaerts-Tatis deals might look quaint by then.

And in the meantime, San Diego might have a World Series flag or two to hang at Petco Park.

This post appeared first on USA TODAY