A survey conducted in March by the New Jersey Society of Certified Public Accountants found that while many certified public accountants support Gov. Mikie Sherrill’s efforts to reduce New Jersey’s operating deficit, they have concerns about certain aspects of her proposed $60.7 billion budget for fiscal year 2027.
The survey results matter because they reflect the opinions of financial professionals who advise businesses and individuals across the state on tax and economic issues. Their feedback provides insight into how the business community might respond to changes in state policy.
According to the survey, 65% of respondents believe that Gov. Sherrill’s proposed budget will leave New Jersey’s economy either marginally or significantly worse over the long term, although they viewed it more favorably compared to Gov. Phil Murphy’s current $58.8 billion budget. Many CPAs said they would like to see deeper cuts to some state programs, preservation of senior tax credits, and modernization of government systems for users and the public.
Regarding property tax relief for seniors through the Stay NJ program, which reduces eligibility from $500,000 to $250,000 and caps benefits at $4,000, 65% felt this change would negatively impact seniors’ ability to remain in New Jersey; over 30% thought it would have little or no effect.
Respondents also raised concerns about a new $1 million cap on corporate tax deductions for net operating losses (NOLs) and prior net operating losses (PNOLs), with more than three-quarters saying it would negatively affect New Jersey’s business climate and competitiveness. More than 80% expressed negative views about reducing alternative business calculation deductions from 50% to 25%, or eliminating them entirely for higher-income pass-through entities.
Other recommendations included lowering corporate taxes to attract companies, changing retirement plans for cost savings, and ending lifetime medical benefits provision by the state. Additionally, more than 80% believed a new per-employee fee on employers with large numbers enrolled in NJ FamilyCare could negatively impact businesses’ costs or administration.
“Our budget surveys are a realistic indicator of the business community’s sentiment towards legislation that could impact growth and hiring in New Jersey,” said Aiysha (AJ) Johnson, MA, IOM, CEO and executive director at the NJCPA. “Our members are a great resource and sounding board for the Legislature on many issues affecting individuals and businesses in the state.”
The final version of Gov. Sherrill’s proposed budget must be approved by June 30 before taking effect July 1.
The New Jersey Business and Industry Association serves as one of the nation’s largest statewide employer associations representing private-sector employers throughout New Jersey across various sectors according to its official website. The association aims to advance competitive excellence among its members while providing advocacy services as well as practical information designed to promote financial success according to its official website. It also facilitates partnerships between businesses, government entities, academic institutions,and offers cost-saving benefits.