State Treasurer Aaron Binder announced Wednesday that Gov. Mikie Sherrill's Detailed Budget Book for Fiscal Year 2027 is now available online.
The book serves as a policy document, operations guide, and financial plan for Sherrill’s proposed $60.7 billion budget. The governor’s proposed spending plan is subject to review by the Legislature, which is tasked with introducing and passing an appropriations bill that must be sent to the governor for approval or veto before the start of the new fiscal year on July 1.
The Detailed Budget Book for Fiscal Year 2027 includes summaries of appropriations, revenues, expenditures, and fund balances, as well as detailed department-by-department appropriations data, and budget language recommendations.
“This detailed budget book shows that Governor Sherrill is serious about holding the line on spending, and the business community says thank you for that,” said NJBIA Chief Government Affairs Officer Christopher Emigholz. “That being said, we do look forward to working with the Sherrill administration on eliminating and moderating the revenue increases.”
The governor says her proposed FY27 budget is a plan for a “more affordable and accountable New Jersey.” It includes proposals for property tax relief for middle-class families; a full payment into the public pension system for the sixth consecutive year; record funding for K-12 schools; and energy initiatives aimed at lowering costs.
However, it also includes tax policy changes that would affect New Jersey businesses. These include:
- The proposed elimination of the Alternative Business Calculation (called the ABC deduction) for pass-thru businesses with gross income of $1 million or more
- A temporary $1 million cap on all net operating loss (NOL) deductions under the Corporation Business Tax (CBT) from tax year 2026 through tax year 2028
- A new tax on businesses with 50 or more employees that utilize Medicaid instead of an employer-sponsored health plan
Emigholz testified at legislative budget hearings last week on the proposed spending plan, expressing support for provisions that put New Jersey on stronger financial footing, pro-business investments, and regulatory reforms. However, he expressed concerns about the three tax policy changes affecting the business community.
“As the state with the second highest unemployment rate in the nation behind California and the only state in the nation in the top third of each of the four major state and local taxes, NJBIA is concerned about any tax increase that makes New Jersey less competitive,” Emigholz told the Assembly Budget Committee in his testimony on March 18.
“NJBIA looks forward to working with the Sherrill administration and the State Legislature to remove or moderate the three revenue raisers, and we will also help Governor Sherrill maintain her proposed spending cuts and pledge to avoid future last-minute (budget) add-ons,” he said.
The 616-page Detailed Budget Book for Fiscal 2027 can be found on the Department of Treasury's website here.
A more concise summary of the governor’s FY27 revenue and spending proposals can be found in the 103-page Budget-In-Brief, that has been available online since March 10, when the governor delivered her budget address to the Legislature.
