New Jersey Business and Industry Association President and Chief Executive Officer Michele Siekerka discussed the business community’s perspective on Governor Mikie Sherrill’s proposed $60.7 billion fiscal year 2027 budget during an episode of “State of Affairs with Steve Adubato,” according to a May 5 statement.
The discussion matters because the new budget, set to begin July 1, introduces several tax changes that could affect businesses across the state. The association represents private-sector employers throughout New Jersey and works to advance their competitive excellence while delivering essential information and services, according to the official website.
Siekerka said, “What we like so far in this administration is the focus on process, and the fact that business has a seat at the table, and the fact that this governor recognizes the business community for the job creators that they are. So, that’s a breath of fresh air.”
However, Siekerka also addressed concerns about new taxes in the proposal. These include a temporary $1 million cap on all net operating loss deductions under corporation business tax from tax years 2026 through 2028; elimination of alternative business calculation (ABC deduction) for pass-through businesses with gross income over $1 million; and a new Medicaid assessment on businesses with at least 50 employees who use NJ FamilyCare instead of employer-sponsored health plans.
Siekerka said the Medicaid assessment is “misplaced” because most companies do provide healthcare coverage for their employees. “It’s not that they’re not providing healthcare for their workforce. They are,” Siekerka said. “The challenge is the workforce that we’re talking about is the under-employed…oftentimes they can only work a certain number of hours which disallows them from meeting the eligibility requirement of 30 hours” (to qualify for employer-provided insurance). She added that rather than imposing fees on businesses employing part-time workers, solutions should focus on childcare costs and transportation challenges—factors often leading workers to seek part-time jobs.
The New Jersey Business and Industry Association serves as one of nation’s largest statewide employer associations by facilitating partnerships among businesses, government entities, and academic institutions while offering advocacy resources to support prosperity among its members,according to its official website.
