NJBIA has expressed dissatisfaction with Governor Phil Murphy's proposed $58.1 billion budget, emphasizing the need to remove new tax increases, restore certain budget cuts, and control unnecessary spending. During a Senate Budget & Appropriations Committee public hearing at the New Jersey Institute of Technology, Christopher Emigholz, NJBIA's Chief Government Affairs Officer, conveyed the business community's concerns.
"I want to express how disappointing this budget is to the business community," Emigholz remarked. He warned that if the proposed fiscal year 2026 budget is enacted without adjustments, the state risks alienating both businesses and customers due to higher taxes.
Senate Budget & Appropriations Committee Chair Paul Sarlo commented, "I think a lot of those fees are not going to make it into the final budget."
Emigholz highlighted worries over the administration's spending increases and the proposed $1 billion in new taxes and fees, stressing the negative impact on workforce development and innovation initiatives. He argued that cuts to sectors like community colleges and manufacturing would weaken New Jersey's competitiveness and hinder organic economic growth. He advised that the path to greater revenue lies in facilitating economic growth through investments, not tax hikes.
As lawmakers deliberate on the governor's proposed spending, Emigholz urged them to avoid adding new expenses that do not enhance innovation, workforce development, or infrastructure. His written testimony pointed out that in Murphy’s previous seven budgets, an additional $5.5 billion was eventually included after the initial budget was proposed.
A final state budget, aligning with these concerns, will need to be implemented before the new fiscal year starts on July 1. Both legislative houses continue to conduct public hearings before reaching a conclusion on the fiscal plan.
The full written testimony by Emigholz is available online for further review.
