Supporting Families, Saving Funds: A Fiscal Analysis of New Jersey’s Domestic Partnership Act

By M.V. Lee Badgett, Brad Sears
November 2003

This study estimates the impact of domestic partnership in New Jersey. Using data from Census 2000 and from other states with similar policies, as well as data on state revenues and expenditures, we conclude that offering domestic partnerships in New Jersey would have a positive impact on the state budget of over $55 million each year.  The only significant fiscal effects of the FEA will be on expenditures for state public benefits programs, expenditures for state employee benefits, and revenues from transfer inheritance tax.  We find that the savings from means-tested benefit programs will far outweigh any increased expenditures for state employee benefits and any loss inheritance tax revenues.

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