Gov. Mikie Sherrill is set to present her first budget address for fiscal year 2027, with a focus on fiscal responsibility following several years of increased state spending.
Christopher Emigholz, Chief Government Affairs Officer at the New Jersey Business and Industry Association (NJBIA), said he was encouraged by early statements from the Sherrill administration regarding fiscal discipline. Emigholz highlighted that New Jersey continues to experience affordability challenges alongside ongoing structural deficits.
Among NJBIA’s recommendations for the FY27 budget are measures aimed at improving the state’s financial outlook and business environment. “NJBIA commends Governor Sherrill’s initial stance and remarks on fiscal responsibility, budget discipline, and spending reform,” Emigholz stated. “The previous eight years included billions in spending beyond what Gov. Phil Murphy proposed and ending that excess spending while seeking efficiencies is a welcome breath of fresh air for New Jersey taxpayers. Governor Sherrill’s focus on affordability is impossible without this disciplined approach to the state budget.”
Emigholz also welcomed plans to avoid new taxes in the upcoming budget: “Complementing this fiscal responsibility, Governor Sherrill’s and Treasurer Aaron Binder’s calls for no new taxes in the FY27 budget is welcome news in our already overtaxed state. We are the only state in the nation that is in the top third highest of the four major taxes. That includes the highest corporate tax rate, the highest property taxes, among top income tax rates, and the top third of state sales tax. We simply can’t be serious about affordability if it pursues further tax increases. Thankfully, Governor Sherrill does not seem to want to go in this direction in her first budget.”
On corporate taxation policy, Emigholz addressed NJBIA’s position regarding the scheduled end of New Jersey’s corporate transit fee: “NJBIA hopes this fiscally responsible budget can set New Jersey down the path of being able to allow the statutory sunset of the corporate transit fee (CTF) to take place as scheduled, without taking any money from NJ Transit because transportation infrastructure is important.” He noted that letting this fee expire at its planned time would mean “New Jersey no longer has the highest corporate tax rate in the nation,” which could improve competitiveness for attracting large employers.
Emigholz called for continued investment in workforce development, infrastructure projects, and innovation efforts: “Amidst the push for finding efficiencies and spending reforms, NJBIA hopes these three areas of pro-growth spending can be prioritized and maintained: workforce development, infrastructure, and innovation.” He argued that such investments attract capital and generate returns by increasing future tax revenue.
Regarding manufacturing sector support within New Jersey’s economy—a key priority area—Emigholz said: “NJBIA believes the most important specific within that pro-growth spending is manufacturing, and it should be prioritized within the FY27 budget.” He urged restoration of funding for programs supporting manufacturers such as NJMEP and EDA’s Manufacturing Voucher Program (MVP), along with expanded access to a new manufacturing tax credit for small- and medium-sized businesses.
He added: “Lastly, manufacturers can be the biggest beneficiaries of Governor Sherrill’s regulatory reform as the bipartisan Manufacturing Caucus has called for regulatory reform in the past. If done right, these manufacturing priorities do not need to increase any line-item in the state budget.”
The New Jersey Business & Industry Association represents private-sector employers throughout New Jersey across various sectors as one of America’s largest statewide employer organizations. The association supports business prosperity through advocacy initiatives as well as providing information services designed to advance members’ competitive excellence (source). Michele Siekerka serves as president and chief executive officer (source).
