The state of New Jersey is anticipating a financial boost as the fiscal year comes to a close, according to recent testimony from Treasurer Elizabeth Maher Muoio. She informed lawmakers that due to strong spring tax collections, the state will end the FY25 budget year with an additional $388.5 million than initially forecasted. Looking ahead, New Jersey can expect $323.2 million more in revenue for the FY26 budget year.
During her presentation before the Assembly Budget Committee, Muoio stated that total revenues for the current fiscal year are projected at $55.3 billion, largely driven by increased collections from the Gross Income Tax and the Pass-Through Business Alternative Income Tax (PTBAIT). For FY26, starting July 1, projected revenues are set at $57.1 billion.
“We will enter the new fiscal year with a solid foundation, while keeping an eye on national and international economic developments,” Muoio said. However, she warned of potential federal funding cuts and tariff impacts that could affect New Jersey's economy.
These revised forecasts present legislators with decisions regarding Governor Phil Murphy's proposed $1 billion in new or expanded taxes for FY26 and potential spending cuts affecting higher education and other sectors.
Christopher Emigholz from NJBIA expressed hope that improved revenue forecasts might lead to restoring cuts in manufacturing and higher education spending or reducing proposed tax increases.
Muoio also highlighted April's revenue collections for major taxes reaching $7.386 billion, marking a 6.4% increase compared to last April. The Gross Income Tax showed robust growth offsetting declines in Corporation Business Tax (CBT) revenues.
April saw GIT collections dedicated to the Property Tax Relief Fund rise by 18.7%, totaling $4.246 billion compared to last year. The Sales and Use Tax increased by 3.6%, while CBT collections fell by 18.3%. Despite CBT final payments being due in May, April remains crucial for these payments under federal schedules.
Additionally, PTBAIT payments rose by 19.6% in April compared to last year, with estimated payments up by 17.7%.
