The New Jersey Business and Industry Association said on Apr. 24 that Governor Mikie Sherrill’s first budget proposal, totaling $60.7 billion for fiscal year 2027, represents a move toward fiscal responsibility despite being the largest in state history.
The NJBIA’s perspective matters because it serves as the nation’s largest statewide employer association, representing private-sector employers throughout New Jersey according to the official website. The organization facilitates partnerships among businesses, government entities, and academic institutions and offers advocacy and information to support business prosperity.
Michele Siekerka, president and chief executive officer of NJBIA according to the official website, said: “We understand the want of people tired of the rampant overspending over the previous eight years to drastically scale it back in one fell swoop. But in actuality, it doesn’t work like that.” Siekerka added that “the governor has to be given some room in her first year to bring her own attention to New Jersey’s fiscal situation, to work toward fiscal responsibility methodically.” She said early cuts have already been made under Sherrill’s plan.
Christopher Emigholz, NJBIA Chief Government Affairs Officer, pointed out that much of the additional spending is due to inflation adjustments. “Yes, there are business tax increases we don’t like as part of the budget,” Emigholz said. “But on the other side of the coin, you can see that Governor Sherrill is attempting to hold the line on spending for the things that she can control.” He also noted efforts by Sherrill to monitor last-minute budget items which have increased spending in recent years.
Sherrill’s proposal marks a 3.2% increase from former Governor Phil Murphy’s last $58.8 billion plan; Murphy averaged nearly a 9% annual rise over his eight budgets. The new plan includes about $2.4 billion in cuts—such as removing approximately $700 million in one-time items—and aims to reduce New Jersey’s structural deficit from $3 billion down to $1.5 billion while trimming funding for property tax relief programs like Stay NJ by about $500 million.
Emigholz called balancing affordability with supporting seniors “a tricky balance,” saying: “We are in an affordability crisis and we can’t raise taxes any higher.” Siekerka highlighted Sherrill’s avoidance of one-time fixes common under Murphy: “Governor Sherrill has shown to be pragmatic through her first 100-plus days… Because this budget starts to hold the line on spending, it has the potential to give us that much-needed level set so we can better address things like underfunded pensions… You can’t do it all in one step but it is important to take that first step.”
Accordingly, NJBIA continues its mission advancing competitive excellence and financial success for its members while delivering essential services according to its official website.