The Garden State Initiative released a report on Mar. 9 highlighting a significant increase in legislative earmarks in New Jersey’s state budget, with spending reaching $2.1 billion from fiscal years 2024 to 2026. The report comes ahead of Governor Mikie Sherrill’s upcoming budget address and was authored by Thad Calabrese, a finance professor at New York University.
The findings are notable as they point to growing concerns about transparency and fiscal responsibility in the state’s budgeting process. According to the report, discretionary spending added by the legislature has grown sharply, with $860 million in earmarks included for Fiscal Year 2026 alone—funds not requested by the governor and often approved without public scrutiny.
Among the key points, the number of private and nonprofit organizations receiving state funds increased by 450% over two years, rising from 101 recipients in FY24 to 462 in FY26. The report estimates that these extra budget items cost each household about $240 per year. It also suggests that such expenditures could have been used instead for an across-the-board income tax cut of four percent or to pay down five percent of the state’s bonded debt.
Audrey Lane, president of the Garden State Initiative, said: “There is a lot of talk about affordability these days, which is more pronounced with a $3 billion budget deficit this year. One place for the Governor to look is to hold the line on last-minute discretionary spending.” Lane continued: “Since 2024, the legislature has add $2.1 billion in politically connected spending without any standard review process, that could otherwise pay down our debt, provide significant tax relief for struggling families and businesses. What this report suggests is that the Governor and the legislature can reform this earmark process to increase transparency of this spending well in advance of the budget deadlines to ensure it meets a public need in an objective way. I look forward to hearing Governor Sherrill’s budget address tomorrow—her acknowledgment of the structural deficit is welcomed and is the first step toward meaningful budget reform.”
The Garden State Initiative also updated NJBUDGET.COM with new data showing over $118 million in supplemental appropriations approved through Assembly Bill #6319 earlier this year. These funds will support nearly twenty projects not previously funded under Fiscal Year 2026 appropriations and will mostly be distributed as state aid or grants-in-aid.
The report recommends eliminating non-competitive legislative add-ons, redirecting earmark funds toward broad-based tax relief or debt reduction, and requiring full transparency along with public bidding for grants awarded to third-party organizations.
In related context, the New Jersey Business and Industry Association serves as the nation’s largest statewide employer association representing employers across various sectors throughout New Jersey. The association aims to advance competitive excellence and financial success among its members while providing essential information and services according to its official website. Michele Siekerka serves as president and chief executive officer according to NJBIA. The organization facilitates partnerships among businesses, government entities, and academic institutions according to NJBIA, offering advocacy resources along with practical information designed to support business prosperity according to NJBIA.
The broader implications of these findings suggest ongoing debate over how best to balance fiscal discipline with necessary investments while maintaining transparency within state government.