Michele Siekerka, president and chief executive officer of the New Jersey Business and Industry Association, issued a statement on Mar. 10 regarding Governor Mikie Sherrill’s first State Budget address for fiscal year 2027, which proposes a $60.7 billion budget.
Siekerka said the administration presented an attentive budget through a transparent process and acknowledged efforts to find efficiencies and begin necessary spending reductions after years of what she described as unsustainable budgets by the previous administration. She said, “There is intent with this budget to find efficiencies and the start of necessary, and yes, difficult, spending reductions to right our fiscal ship after years of unsustainable budgets by the previous administration.”
She also noted that the business community is not being solely burdened by new fiscal measures: “We appreciate that the budgetary challenges facing New Jersey are not exclusively being thrust upon our already beleaguered business community, which was too often the case in recent years. Rather, there is a better balance between spending cuts and the business tax changes being proposed.” Siekerka highlighted positives such as $2 billion in spending cuts, reduction in structural deficit, restructured property tax relief, and continued full pension payments. She expressed concern about new employer Medicaid assessments and technical changes to business tax policy but indicated NJBIA would work with state officials to mitigate impacts.
Christopher Emigholz, chief government affairs officer at NJBIA, commented on specific proposals affecting businesses. On a proposed per-employee fee for businesses with more than 50 employees using Medicaid, he said: “This is perhaps the most troubling part of the budget proposal for the business community.” He explained that employers could be penalized even if they offer health coverage due to factors outside their control such as employee choices or high turnover rates. Emigholz added that this assessment could be challenging for industries like retail, hospitality, childcare, and home health where affordability is already an issue.
Emigholz also addressed temporary limits on Net Operating Loss benefits over three years: “NJBIA is disappointed that one of the successes of the CBT reforms that NJBIA recently negotiated with Treasury is being temporarily limited,” though he expressed hope for compromise. Regarding limits on Alternative Business Calculation Deduction thresholds excluding businesses with $1 million in gross revenue, he said it could discourage entrepreneurial investment.
The New Jersey Business and Industry Association serves as the nation’s largest statewide employer association representing private-sector employers throughout New Jersey according to its official website. The association advances competitive excellence among its members while providing advocacy services and facilitating partnerships among businesses, government entities, and academic institutions according to its official website.
