Michele Siekerka, President and CEO of the New Jersey Business & Industry Association (NJBIA), responded to Governor Phil Murphy's fiscal year 2026 state budget proposal with a critical assessment. The $58.1 billion budget includes a structural deficit of $1.2 billion.
Siekerka stated, "Not surprisingly, Governor Murphy’s eighth and final budget proposal represents another unsustainable spending increase with another structural deficit built in." She noted that while there are slight improvements from last year's record-setting business tax increase and larger structural deficit, the budget still increases other taxes to support what she describes as an unsustainable spending rate in New Jersey.
The NJBIA welcomed the administration's fifth consecutive full pension payment but criticized the lack of discussions on pension and benefit reforms for future state employees. According to Siekerka, such reforms could reduce large draws from future budgets without harming the state's economy.
On education funding, Siekerka acknowledged the full funding of New Jersey’s school funding formula but expressed concerns about its effectiveness, stating it leaves too many districts with unforeseen funding changes and lacks transparency and accountability.
Regarding taxes, Siekerka questioned any tax increases when affordability remains an issue. She highlighted concerns over increased taxes on internet gambling, alcohol, cigarettes, cannabis products, and real estate transactions. "The impacts of the doubling and tripling of real estate taxes will filter down to buyers and sellers of homes less than $1 million," she said.
Siekerka also commented on transportation funding: "$815 million committed to NJ TRANSIT in FY26 from the Corporate Transit Tax appears to be most of the projected amount to be collected this coming fiscal year." However, she pointed out that $1 billion collected remains in surplus for purposes other than NJ TRANSIT.
A significant point of disappointment for NJBIA was a $20 million cut for community colleges. "At the same time," Siekerka remarked, "we are spending millions on cell phone pouches and to promote school board voting of 16- and 17-year-olds."
She mentioned interest in hearing more about tax credits for next-generation manufacturing and investments in workforce development while expressing disappointment at the return of a truck excise fee proposal. "This tax will burden the vital manufacturing and logistics industries," she warned.
In conclusion, Siekerka emphasized ensuring pro-growth investments in infrastructure, innovation, and workforce development are prioritized over areas that do not yield economic growth. She noted that today's proposal marks a 67% increase over Governor Murphy’s eight state budgets: "We know that these increases are just plain unsustainable while New Jersey still has one of the worst unemployment rates in the region and nation year after year."
