Earlier today, Governor Murphy presented his final budget proposal for Fiscal Year 2026. The proposal includes revenue-raising measures such as an expanded fee on property sales over $1 million. However, it also reduces grant funding for programs that provide essential services to working families across the state. Despite fully funding public schools and pension obligations, the structural deficit remains over $1 billion, with a surplus that would cover barely a month of government operations in case of an economic downturn.
New Jersey Policy Perspective (NJPP) responded with a statement from Nicole Rodriguez, President of NJPP:
“New Jersey’s state budget desperately needs new revenue to make health care, housing, and transit more affordable for working- and middle-class families while addressing the widening structural budget deficit. With federal funding cuts looming on the horizon, the Governor’s budget proposal takes an important step towards fiscal responsibility by increasing revenues through targeted measures like the expanded realty transfer fee while maintaining full funding for key commitments for public schools and pensions."
Rodriguez added: “However, even with these efforts, the budget still leaves the state vulnerable — failing to close the structural deficit or build a surplus ample enough to withstand federal cuts to critical programs like Medicaid. While families are struggling with basic costs, the proposed budget does not expand the Child Tax Credit or income assistance for working-class households, and it cuts back on grant funding for nonprofits and community programs. Yet, the budget finds room to fund StayNJ, an expensive homeowner subsidy program that would help wealthy households even though it fails to meet the required fiscal responsibility guardrails set out in the original law."
She concluded: “Rather than diverting funds from affordable housing and other essential services to fill budget holes, New Jersey needs more progressive, sustainable revenue solutions to build an equitable state for all residents — not one that forces cutbacks for the programs they rely on.”
The NJPP has released its latest analysis titled "What to Look for in the New Jersey Budget for Fiscal Year 2026."
