In a post-State of the State interview with NJ Spotlight News on Tuesday, NJBIA President and CEO Michele Siekerka said New Jersey’s direction into fiscal cliff challenges, forecasted as part of FY26 State Budget discussions, should not be a surprise to anyone.
Siekerka told NJ Spotlight News anchor Briana Vannozzi that a reduction in hiring and wage increases within state government, announced by the front office in November, should have been expected.
“We held a forum a year ago and we had economists who were discussing exactly that we’re at the fiscal cliff in New Jersey,” she said. “We are out of money. So that was no surprise.
“A $56 billion budget is not sustainable in the state of New Jersey. We were able to do full funding when we had federal dollars from COVID, and we also had $4 billion in borrowings, the only state to borrow during COVID. That money has run out. We hit the fiscal cliff. We’ve got a problem going forward.”
Siekerka also said it’s not surprising, although disappointing, that Gov. Phil Murphy did not discuss business affordability in his hour-long State of the State address on Tuesday.
“We hear about property tax relief for the homeowner, for the renter, (that’s) critically important, and we want to see that funded,” Siekerka told Vannozzi. “We need to bring property taxes down.
“But New Jersey businesses pay 50% of property taxes across the state of New Jersey. Where is their property tax relief? That’s just by way of example.
“Businesses are not growing here. They’re choosing to grow in other states. I have this discussion every single day with people who are trying to stay here. They say, ‘I’m not going to pick up my entire footprint here, but I am not growing another job here. I can’t afford it.’
To see the full post-State of the State address conversation, click here.
