A critical bill to keep state government fully functioning over the next three months amid tanking revenues and double-digit unemployment as a result of the pandemic-induced shutdown passed the Senate Budget and Appropriations Committee on Friday.

On Monday, both the Senate and Assembly approved S-20 and its Assembly version, A-3. The measure now goes before Gov. Phil Murphy.

On Friday S-20 cleared the 12-member Senate budget committee by an 8-4 vote along party lines. It essentially buys the state three months to keep operating, in keeping with the agreement announced April 1 between the governor and Legislature to extend the budget cycle during this most unusual of years.

Residents and businesses were also bought time to file income and corporate taxes, as that deadline moved to July 15 in the same announcement.

A month later, on May 4, the governor announced he was rescinding an executive order to commit $1.28 billion toward the state's surplus fund as the fiscal picture worsened. The Governor's Office has said it expects revenue projections to be down by about $10 billion, including $2.8 billion less than expected in this fiscal year, and $7.2 billion less in the next fiscal year.

Senate Budget Committee Chairman Paul Sarlo, D-Bergen, described S-20 as "a three-month budget plan under crisis conditions." A-3, sponsored by Assembly Budget Chair Eliana Pintor Marin, D-Essex, and Assemblyman John Burzichelli, D-Gloucester, passed the Assembly Budget Committee the previous day by an 8-4 vote with one abstention.

Instead of the traditional June 30 deadline to come up with a balanced state budget for the new fiscal year, it is Sept. 30 this year.

Gov. Phil Murphy in June has gradually relaxed lockdown restrictions that were put in place in mid-March that virtually shut down all businesses and workplaces. The closures drained state coffers of much-needed income, sales and corporate business tax revenue to fund government services.

The purpose of S-20, as stated in the bill: "Amends and supplements FY20 Appropriations Act to effectuate extension of fiscal year through September 30, 2020; reduces authorized appropriations; makes FY20 supplemental appropriations of $7,745,997,000 in State funds and $4,586,243,000 in federal funds."

"We're passing this measure to continue to operate state government," said Sarlo, who sponsored S-20 with committee Vice Chair Sandra Cunningham, D-Hudson, during a rare Friday hearing that was convened due to the looming June 30 deadline. "It's a state budget with $7.7 billion in appropriations from what was formerly a $40 billion budget.

"It will be funding government through Sept. 30, 2020," said Sarlo. "In retrospect I wish we never had to pass a three-month budget, but we have no choice."

Sarlo said the measure "provides support for public colleges and universities that are experiencing severe financial challenges, a boost for the unemployment system, preserves funding for affordable housing and produces an increased surplus."

The six others voting for the bill were Linda Greenstein, D-Mercer; Teresa Ruiz, D-Essex; Nilsa Cruz- Perez, D-Camden; Patrick Diegnan, D-Middlesex; Troy Singleton, D-Burlington; and Senate President Stephen Sweeney, D-Gloucester.

All four Republicans on the committee—Michael Testa, R-Cape May; Declan O'Scanlon, R-Monmouth; Steven Oroho, R-Sussex; and Samuel Thompson, R-Burlington—stayed true to their word from earlier in the week that they would oppose the bill on grounds that Murphy, they contend, hasn't been fiscally prudent enough during the public health crisis.

"Our suggestions on cost savings from furloughs [for state workers] and health care benefit reforms were ignored," Oroho said when given time to opine on the bill before casting his 'no' vote. "The revenue projections are not as deep in the hole, but this temporary budget just pushes New Jersey's problems three months down the road and relies heavily on a huge bailout from the federal government."

Oroho said there was another problem with S-20: the proposal came from the governor.

"There's been only one official making all the decisions, and the Legislature is a co-equal branch of government," said Oroho. "Many of our suggestions have been ignored, and we're forced to go along to get along."

Though some gave testimony via Zoom expressing their reservations over the bill. Christopher Emigholz, vice president of government affairs for New Jersey Business and Industry Association, wondered aloud whether S-20 relies too much on deferring payments to the new fiscal year, while Valerie Sellers, CEO of New Jersey Association of Community Providers Inc., pleaded with lawmakers to reconsider cuts in funding for her group, which provides services and support to individuals with disabilities.

Sellers said NJACP has been battered by increased costs to contain COVID-19 in its facilities.

"Please keep enhanced residential funding for us," said Sellers. "Our day care programs absolutely need it."

After the committee voted, Sarlo released a statement that was far from a victory lap.

"There are no winners here," said Sarlo. "We have never faced such sudden and severe financial circumstances, but we have a plan to make the best of limited resources and to address the critical needs of New Jersey as we contend with the fiscal consequences of the pandemic.

"Our work is far from done. We next have to focus on a fiscal plan for the following nine months and be prepared for the economic challenges we will continue to face over the next few years," added Sarlo. "The decisions will be even more difficult."

As expected,  the Senate and Assembly approved S-20/A-3 on Monday, during what were both chambers' first in-person voting sessions since social distancing guidelines were put in place in mid-March, which barred the public and lawmakers from the Statehouse.

The Senate vote was 21–17. The Assembly vote was 46-27.

The voting sessions started at 1 p.m. Other bills that passed both houses with ease were the designation of June 19, Juneteenth, as a state and public holiday and a requirement for law enforcement agencies to provide the personnel files of law enforcement officers to other agencies during the hiring process. The Assembly passed the latter bill, A-744, recently as part of a criminal justice reform package amid the national outcry over George Floyd, a Black man who died in the custody of white police officers in Minneapolis on Memorial Day. The Senate passed S-1418, the identical measure that was substituted by A-744, by a 38-0 vote.

Like the past three months, the general public was prohibited from accessing the Statehouse on Monday, but the voting sessions were again livestreamed.