Gov. Phil Murphy signed a record $58.8 billion budget for fiscal year 2026, his last as a term-limited governor, on Monday night. Murphy inked the budget after the full Assembly and Senate voted almost exactly along party lines to pass the bill.
After moving through committees of both houses on Friday night, Democrats added more than $400 million in new spending that pushed the total to $58.8 billion.
The bill calls for higher taxes on online gambling and online sports betting, as well as on packs of cigarettes and liquid nicotine found in vaping devices. A separate section of legislation calls for lifting state fees levied on properties selling for more than $2 million in New Jersey.
Business groups did not give the budget a thumbs up, chiding lawmaker for another year of what they consider overspending and overtaxing.
“We are deeply disappointed in this year’s budget,” said New Jersey. Chamber of Commerce President and CEO Tom Bracken. “It marks the eighth consecutive year of overspending and continues to show a troubling lack of focus on growing New Jersey’s current and future economies. This budget makes the state less affordable, less competitive, and less business friendly.”
Bracken did say the budget contained “some positive elements in this year’s fiscal plan – such as support for manufacturers, restoration of community college funding, elimination of certain sales taxes, expedited building inspections, and increased assistance for small businesses.”
His concerns involved the budget’s reliance on $1 billion in tax increases and “draws heavily from the state’s surplus to achieve balance.”
New Jersey Business and Industry Association President and CEO Michele Siekerka found much to criticize with the budget that was advanced by the state Senate.
“Obviously, we didn’t get here overnight with a budget that has grown nearly 70 percent under Gov. Phil Murphy. But it is high time our policymakers look forward with a new approach under a new administration, no matter who our next governor is.
“We need budget policies that make New Jersey more competitive and less anti-business. And we need an improved and more transparent process for how our budget is finalized.
“Absent any of this, New Jersey will continue its solemn march toward a fiscal cliff, with more residents unable to afford to live, work and play here and more businesses unable to sustain or grow. We can do better. In fact, we need to.”
New Jersey Policy Perspective, a progressive think-tank, weighed in on the new budget’s impact and the financial challenges ahead.
NJPP said that despite modest revenue increases, New Jersey “faces a nearly $1.5 billion budget gap that must be filled from cash reserves now down to $6.7 billion — barely covering one month of operations.”
The organization added that “expected congressional cuts to Medicaid and food assistance could create a devastating double impact on state finances and residents.”
NJPP acknowledged that the budget reflected revenue progress, citing the millionaire’s tax, corporate transit fee, and expanded realty transfer fee, but the think tank said bolder action is needed to protect against the “financial storm ahead.”
“This budget’s legacy depends on what happens in Washington,” said Nicole Rodriguez, NJPP president. “It represents a missed opportunity for the state to take bold, decisive action to protect its residents by raising revenue ahead of time to limit the damage of federal cuts.”
