Gov. Phil Murphy’s $58.1 billion state budget proposal is “unsustainable” with structural deficits that need to be addressed and new taxes that need to be axed, NJBIA President & CEO Michele Siekerka said this past weekend on News 12’s ‘Power & Politics” show.
“We’re spending more than we’re bringing in,” Siekerka told News 12 anchor Eric Landskroner. “We’re overspending, we’re not taking care of our debt issues, and we’re creating new taxes. That is not a formula for affordability, which is what New Jersey residents have been asking for.”
Siekerka said the FY26 budget proposal, which the Legislature must review and vote on by June 30, contains over $1 billion in new taxes and unnecessary spending. At the same time, it proposes to make counterproductive cuts to programs that grow the economy, such as manufacturing initiatives and higher education.
Asked by Landskroner to name a few of the “most offensive” new or expanded taxes in the proposed FY26 budget, Siekerka noted the increase in the realty transfer fee, the expansion of the sales tax to a wide range of participatory sports such as bowling, and the increase in taxes on internet gaming and online sports betting as examples.
Siekerka said a family home is often the only significant asset a family can sell to fund their retirement or finance end-of-life care, such as assisted living. A higher realty transfer on homes listed for over $1 million will also create a “compression factor” in the real estate market that will exacerbate the current housing shortage in New Jersey, she said.
The higher taxes proposed for internet gaming and online sports betting are also counterproductive, Siekerka said.
“We take advantage of anything that starts to be even slightly successful here in the State of New Jersey,” Siekerka said. “Internet and online gaming have created hundreds and hundreds of jobs … those jobs will go away.”
Asked by Landskroner what should be red lined in the proposed budget, Siekerka said it was a matter of setting the correct priorities.
“Number one, I would wipe those taxes right off and I’d say, ‘Where are we going to save $1.2 billion because we can’t, we just can’t afford to tax folks anymore,” Siekerka said.
Part of reprioritizing needs would entail restoring some of the counterproductive cuts that the FY26 budget now contains, such as community college funding and programs that help manufacturers invest in new equipment and training. These are items that New Jersey needs to grow its workforce and the economy, she said.
“We need to restore the $20 million cut to community colleges,” Siekerka said. “Community college is the heart and soul of workforce development … and if we can’t support our community colleges we can’t upskill.”
To listen to the entire interview, go here and scroll down to the second video on the News 12 webpage.
