Key facts
- Governor Mikie Sherrill's first budget has drawn criticism from Republicans.
- Critics cited a lack of transparency in the budget adoption process.
- The budget reduces the state's surplus and cuts funding for the StayNJ program.
- New taxes on businesses, including a per-employee fee and data broker fees, are included.
- Republicans argue the budget process was flawed and favored the Democratic legislature.
New Jersey Governor Mikie Sherrill's inaugural budget has faced significant criticism from Republican lawmakers, who argue that the process lacked transparency and continued traditions that Sherrill herself had previously denounced. Assemblymember Michael Inganamort stated that the budget was adopted in committees late on a Sunday night, calling the process "broken."
Sherrill acknowledged that the budget process requires improvement, noting it takes too long and could be more transparent, but asserted that steps were taken in the right direction. The budget plan aims to reduce the state's surplus from $7.6 billion in fiscal year 2026 to approximately $6 billion for the upcoming fiscal year.
Key measures in the budget include scaling back the StayNJ program by $400 million, lowering the eligibility income threshold from $500,000 to $200,000, and reducing maximum benefits for seniors earning over $100,000.
Additionally, the budget anticipates tax increases on businesses, such as a per-employee fee for workers on Medicaid, temporary caps on deductions from prior years, and new fees for data brokers. GOP Assemblymember Greg McGuckin criticized the budget on the Assembly floor, stating that residents and taxpayers were the losers and that the Democratic Legislature had won against Governor Sherrill.