The New Jersey Chamber of Commerce has expressed disappointment with the state's fiscal year 2026 budget. Tom Bracken, President and CEO, stated that the budget represents "the eighth consecutive year of overspending" and lacks focus on economic growth for New Jersey. He emphasized that it makes the state "less affordable, less competitive, and less business friendly."
Despite acknowledging some positive aspects in the budget—such as support for manufacturers, restoration of community college funding, elimination of certain sales taxes, expedited building inspections, and increased assistance for small businesses—Bracken believes these are overshadowed by concerns about long-term fiscal health.
The budget relies on $1 billion in tax increases affecting online gaming and sports betting industries and uses surplus funds to balance finances. The tourism industry faces significant cuts ahead of an influx expected from the FIFA World Cup. Bracken criticized a realty transfer tax increase on properties over $2 million as detrimental to investment.
He warned against using one-time resources for recurring expenses, which could leave future governors with financial challenges. An additional $700 million in spending was added late in the process, exacerbating fiscal instability.
Bracken noted the absence of a forward-looking economic strategy in the budget. He argued that empowering businesses is essential for sustainable revenue growth without increasing taxes on residents.
Looking forward, Bracken hopes for a governor who prioritizes fiscal discipline and economic development to achieve sustainable prosperity. He stated that bold action is needed to address New Jersey's economic challenges effectively.
