Gov. Mikie Sherrill will deliver her inaugural budget speech for FY27 on Tuesday, with the aim of fiscal responsibility after a track record of overspending in recent years.
NJBIA’s Chief Government Affairs Officer and resident budget guru Christopher Emigholz said he is encouraged by the early budget messaging from the Sherrill administration, particularly as New Jersey continues to face an affordability crisis amid continuing structural deficits.
Here are just a few items for NJBIA’s FY27 Budget Wish List, delivered by Emigholz.
Fiscal responsibility: “NJBIA commends Governor Sherrill’s initial stance and remarks on fiscal responsibility, budget discipline, and spending reform.
“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.
No new taxes: “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.”
Corporate Transit Fee sunset: “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.
“That CTF sunset is set to take place at the end of 2028, in the middle of the FY29 budget year. That’s the budget that will be proposed two years from now. Letting it expire will mean New Jersey no longer has the highest corporate tax rate in the nation, which will undoubtedly help our state become more competitive in attaining and retaining large job creators.
Pro-growth spending: “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.
“Spending in these areas attracts capital and generates ROI because spurring growth ultimately boosts future tax revenue.
A focus on manufacturing: “NJBIA believes the most important specific within that pro-growth spending is manufacturing, and it should be prioritized within the FY27 budget.
“Restoring funding for NJMEP and the EDA’s Manufacturing Voucher Program (MVP) is critical to the success of New Jersey manufacturers. It is also important to increase access to the new manufacturing tax credit, so small and mid-sized manufacturers can benefit from this exciting new program.
“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.”
