Michele Siekerka, president and chief executive officer of the New Jersey Business and Industry Association, issued a statement on Mar. 10 regarding Governor Mikie Sherrill’s first State Budget address for fiscal year 2027, which includes a $60.7 billion spending plan.
Siekerka said the proposed budget reflects an effort to find efficiencies and begin necessary spending reductions after what she described as years of unsustainable budgets by the previous administration. She said, “Today the Sherrill administration proposed an attentive budget through a transparent process, as promised. There is intent with this budget to find efficiencies and the start of necessary, and yes, difficult, spending reductions to right our fiscal ship after years of unsustainable budgets by the previous administration.”
She also noted that business tax changes are more balanced in this proposal compared to prior years. “We appreciate that the budgetary challenges facing New Jersey are not exclusively being thrust upon our already beleaguered business community, which was too often the case in recent years. Rather, there is a better balance between spending cuts and the business tax changes being proposed,” Siekerka said.
Among positive elements cited were $2 billion in spending cuts, reduction in structural deficit, restructured property tax relief measures, and continued full pension payments. Siekerka added appreciation for job growth commitments within the state Department of Environmental Protection aimed at expediting permitting processes.
However, concerns remain about new employer Medicaid assessments and technical changes to business tax policy. Christopher Emigholz, chief government affairs officer at NJBIA, commented on these issues: “This is perhaps the most troubling part of the budget proposal for the business community.” He explained that employers could be penalized even if they offer health coverage because many do not know how many employees use Medicaid or have high turnover rates. Emigholz said this assessment could challenge businesses in retail, hospitality, childcare, and home health industries where affordability is already an issue.
Emigholz also addressed temporary limits on Net Operating Loss benefits: “NJBIA is disappointed that one of the successes of the CBT reforms that NJBIA recently negotiated with Treasury is being temporarily limited.” On limiting Alternative Business Calculation Deduction eligibility he said: “While it may be well intentioned to better focus this tax program on smaller businesses, NJBIA is worried that the proposed threshold is too low because it excludes businesses with $1 million in gross revenue and could discourage entrepreneurial investment.”
The New Jersey Business and Industry Association serves as the nation’s largest statewide employer association, representing private-sector employers throughout New Jersey across various sectors. The organization advances competitive excellence among its members while delivering essential information and services according to its official website. It facilitates partnerships among businesses, government entities, and academic institutions according to its official website, offering advocacy resources as well as cost-saving benefits designed to support business prosperity according to its official website.
Siekerka concluded her remarks by encouraging discipline from both administration and legislature against last-minute legislative earmarks: “We encourage the Sherrill administration and Legislature to unequivocally apply discipline to avoid clandestine, add-on spending for local expenditures… Finally… now is the time to finally embrace real reforms in New Jersey.” She added that NJBIA looks forward to working with state leaders “to make this a fair budget and one that positively impacts affordability and regional competitiveness.”
