As Governor Mikie Sherrill prepares to deliver her first budget address for fiscal year 2027, the New Jersey Business and Industry Association (NJBIA) has released its list of priorities for the upcoming state budget. The organization, which represents private-sector employers across New Jersey and is recognized as the nation’s largest statewide employer association, is urging a focus on fiscal responsibility and pro-growth measures.
Christopher Emigholz, NJBIA’s Chief Government Affairs Officer, expressed cautious optimism about the early messaging from the Sherrill administration regarding spending restraint. “NJBIA commends Governor Sherrill’s initial stance and remarks on fiscal responsibility, budget discipline, and spending reform,” said Emigholz. “The previous eight years included billions in spending beyond what Gov. Phil Murphy proposed and ending that excess spending while seeking efficiencies is a welcome breath of fresh air for New Jersey taxpayers. Governor Sherrill’s focus on affordability is impossible without this disciplined approach to the state budget.”
A central point in NJBIA’s recommendations is opposition to new taxes in the FY27 budget proposal. “Complementing this fiscal responsibility, Governor Sherrill’s and Treasurer Aaron Binder’s calls for no new taxes in the FY27 budget is welcome news in our already overtaxed state,” Emigholz stated. “We are the only state in the nation that is in the top third highest of the four major taxes. That includes the highest corporate tax rate, the highest property taxes, among top income tax rates, and the top third of state sales tax. We simply can’t be serious about affordability if it pursues further tax increases. Thankfully, Governor Sherrill does not seem to want to go in this direction in her first budget.”
NJBIA also addressed its hope that a fiscally responsible approach will allow for the planned expiration of New Jersey’s corporate transit fee at the end of 2028 without reducing funding for NJ Transit services. “NJBIA hopes this fiscally responsible budget can set New Jersey down the path of being able to allow the statutory sunset of the corporate transit fee (CTF) to take place as scheduled, without taking any money from NJ Transit because transportation infrastructure is important,” said Emigholz. “That CTF sunset is set to take place at the end of 2028, in the middle of the FY29 budget year. That’s the budget that will be proposed two years from now. Letting it expire will mean New Jersey no longer has the highest corporate tax rate in the nation, which will undoubtedly help our state become more competitive in attaining and retaining large job creators.”
On spending priorities that promote economic growth, Emigholz highlighted workforce development, infrastructure investment, and innovation as areas where funding should be maintained or increased: “Amidst the push for finding efficiencies and spending reforms, NJBIA hopes these three areas of pro-growth spending can be prioritized and maintained: workforce development, infrastructure, and innovation. Spending in these areas attracts capital and generates ROI because spurring growth ultimately boosts future tax revenue.”
Emigholz placed particular emphasis on support for manufacturing within these pro-growth strategies: “NJBIA believes the most important specific within that pro-growth spending is manufacturing, and it should be prioritized within the FY27 budget.” He called for restoring funding for programs like NJMEP (New Jersey Manufacturing Extension Program) and EDA’s Manufacturing Voucher Program (MVP), as well as expanding access to a new manufacturing tax credit so small- and mid-sized manufacturers benefit.
“Lastly,” he added,”manufacturers can be the biggest beneficiaries of Governor Sherrill’s regulatory reform as the bipartisan Manufacturing Caucus has called for regulatory reform in the past. If done right, these manufacturing priorities do not need to increase any line-item in the state budget.”
According to its official website (https://njbia.org/), NJBIA works to advance competitive excellence among its members by providing advocacy services along with essential information designed to support business prosperity throughout New Jersey.
Michele Siekerka serves as president and chief executive officer of NJBIA (https://njbia.org/). The association also fosters partnerships between businesses, government entities, and academic institutions (https://njbia.org/) while delivering cost-saving benefits aimed at supporting business success (https://njbia.org/).
