As New Jersey approaches the fiscal year 2026 budget deadline, concerns are mounting over the state's economic future. President and CEO Tom Bracken has expressed alarm over Governor Murphy's proposed $58.1 billion budget, which he claims lacks fiscal restraint and fails to invest in long-term economic growth.
Bracken criticizes the budget for continuing a pattern of high spending and tax increases without significant investment in businesses, which he views as crucial for New Jersey's economic stability. He notes that while the budget allocates over $23.2 billion to school funding, public pensions, and property tax relief, it offers little support to the business community.
According to NJ Spotlight News analysis, these areas need reform rather than just funding. Bracken suggests reallocating 5% of this sum—approximately $1.16 billion—to state economic growth initiatives aimed at job creation and expanding the tax base.
State spending has increased by nearly 70% since 2016, with New Jersey's economic ranking dropping from 24th to 31st according to U.S. News & World Report. The state ranks poorly in fiscal stability and economic opportunity, which Bracken attributes to unsustainable budgeting practices.
The Rowan University’s Steve Sweeney Center for Public Policy reports a potential structural deficit reaching $26.8 billion by 2029 under pessimistic projections. Meanwhile, corporate business tax collections have declined by 18%, and a survey by the NJ Society of CPAs reveals widespread pessimism about the budget's impact on New Jersey's economy.
Bracken also highlights new taxes and fees totaling $1.2 billion as additional burdens on businesses already facing challenges like inflation and supply chain disruptions.
At a recent New Jersey Chamber of Commerce Business Roundtable event, Speaker Craig Coughlin raised concerns about possible federal funding cuts for Medicaid, Medicare, and SNAP programs.
Bracken calls for thoughtful spending cuts, halting tax hikes that could drive businesses away, supporting institutions that aid business growth, restoring funding to small business initiatives like the Main Street Recovery Fund, and investing in workforce development through higher education and job training.
He emphasizes that employers are not seeking handouts but opportunities to thrive within a fiscally responsible framework that prioritizes both economic growth and stability.
"This budget is our last chance to correct course — or we leave a fiscal mess for the next administration to clean up," warns Bracken.
The urgency is clear as New Jersey faces its impending budget deadline with critical decisions ahead.
