In a recent interview with NJ Spotlight News, Michele Siekerka, President and CEO of the New Jersey Business & Industry Association (NJBIA), discussed the fiscal challenges facing New Jersey as part of the FY26 State Budget discussions. Siekerka highlighted that these challenges should not come as a surprise.
Speaking with NJ Spotlight News anchor Briana Vannozzi, Siekerka referred to a reduction in hiring and wage increases within state government announced in November. She stated, “We held a forum a year ago and we had economists who were discussing exactly that we’re at the fiscal cliff in New Jersey. We are out of money. So that was no surprise."
She elaborated on the financial situation by saying, "A $56 billion budget is not sustainable in the state of New Jersey. We were able to do full funding when we had federal dollars from COVID, and we also had $4 billion in borrowings, the only state to borrow during COVID. That money has run out. We hit the fiscal cliff. We’ve got a problem going forward.”
Siekerka also expressed disappointment over Governor Phil Murphy's omission of business affordability issues in his recent State of the State address. She remarked, “We hear about property tax relief for the homeowner, for the renter, (that’s) critically important, and we want to see that funded. We need to bring property taxes down."
She pointed out that businesses contribute significantly to property taxes but lack relief measures: “But New Jersey businesses pay 50% of property taxes across the state of New Jersey. Where is their property tax relief? That’s just by way of example."
Highlighting business growth concerns, Siekerka noted, “Businesses are not growing here. They’re choosing to grow in other states. I have this discussion every single day with people who are trying to stay here. They say, ‘I’m not going to pick up my entire footprint here, but I am not growing another job here. I can’t afford it.’”
For those interested in more details from this conversation following the State of the State address, further information is available online.
