The $56.6 billion budget signed by Gov. Phil Murphy Friday evening includes $220 million for StayNJ, a tax break for seniors designed to help older residents remain in New Jersey.

Though the new budget didn’t meet the benchmarks spelled out in legislation last year, StayNJ is still receiving the money because budget language will allow for a workaround. The bill that approved StayNJ stipulated it could proceed only if the state could fund the program and meet school funding and pension payment obligations, maintain property tax deduction programs, and have a state budget surplus of at least 12%.

Although the budget does not meet the surplus requirement, budget language did away with the benchmarks so the program would still see another $220 million in funding.

The plan is expected to cost about $1.3 billion annually and benefit residents over the age of 65 with incomes of not more than $500,000. About 90% of eligible recipients are projected of having incomes less than $200,000. Under the initiative, seniors’ property taxes would be cut in half, with a cap on the benefit of $6,500.

How does StayNJ work?

A task force in May issued recommendations for the implementation of the plan, including the application process and timeline for payouts.

Among the task force recommendations were:

• A one-year residency requirement, a minimum age of 65 as of Dec. 31 of the benefit year and that legislation to implement these changes be signed into law no later than Nov. 3 of this year and for the application to be available Feb. 1, 2025.

• They recommend payments being made by check or direct deposit in the first year and for the Department of Community Affairs and the Department of the Treasury to develop a standard application packet to be sent out no later than the November tax bill. The report recommended the agencies then “work toward the effective implementation of a credit process for future years.”

What is the goal of StayNJ?

A report released in March by the Monmouth University Polling Institute found nearly half of New Jerseyans said they would like to move out of state at some point, with many giving the high cost of living as the primary reason.

But, according to the poll, 45% of state residents were more likely to stay given the StayNJ program; 53% said the StayNJ program would not change their decision, suggesting the initiative is having some of the desired effect.

This article originally appeared on NorthJersey.com: Senior tax rebate StayNJ gets $220 million in 2025 NJ state budget