The New Jersey Chamber of Commerce outlined its support for parts of Governor Mikie Sherrill’s proposed $60.7 billion state budget while also raising concerns about measures that could increase costs for businesses, according to testimony before the Assembly Budget Committee on March 18.
The discussion is important as it highlights how the business community views policies that may affect economic competitiveness and job growth in New Jersey. The chamber’s feedback comes as lawmakers consider changes to address a structural deficit and promote economic stability.
Michael Egenton, executive vice president of government relations at the New Jersey Chamber of Commerce, praised efforts by the Sherrill administration to address a roughly $3 billion structural deficit and reduce regulatory burdens. However, he warned that some proposals would raise taxes on certain businesses and threaten job creation. “This comes at a time when New Jersey already faces significant competitiveness challenges,” Egenton said.
Egenton specifically pointed to a plan to cap net operating loss deductions at $1 million for three years, saying this would increase tax burdens and create uncertainty for companies that rely on long-term planning. “New Jersey, which has the highest corporate tax rate, will now have the most restrictive dollar limitation on net operating loss deductions,” Egenton said. He also expressed concern about a proposed Employer Health Assistance Contribution fee targeting companies with more than 50 employees who have workers enrolled in Medicaid, warning it could discourage hiring part-time staff.
Other issues raised included funding cuts for higher education and reductions to the Manufacturing Voucher Program run by the New Jersey Economic Development Authority (NJEDA), both seen as important for workforce development and supporting small manufacturers. Egenton urged policymakers to avoid policies that “increase costs for employers while providing relatively limited fiscal benefit.” Still, he noted positive aspects such as increased funding for NJEDA, permitting reforms, lower business filing fees, and expanded resources for business support programs. “Programs like these play a critical role in helping small businesses grow, expand, and create jobs across the state,” he said.
Egenton also supported investments in infrastructure, workforce development, and K-12 education as essential to long-term growth. He commended the proposal’s modest 1.6% spending increase and approximately $2 billion in spending cuts aimed at reducing the deficit but cautioned against relying solely on spending reductions: “We cannot cut our way to prosperity.”
The chamber’s position aligns with its broader mission of supporting workforce development through its foundation emphasizing skills for future jobs according to the official website. It works statewide with local chambers to advance business-friendly legislation according to the official website, foster job growth according to the official website, lobby for appealing business policies according to the official website, offer networking events according to the official website, and provide educational resources according to the official website.
“The business community shares the administration’s goal of building a stronger, more resilient economy that benefits all residents,” Egenton said. “And New Jersey’s long term economic growth depends on maintaining a competitive, predictable environment for businesses to invest, expand, and create jobs.”
Lawmakers must adopt a final budget by June 30.
