Earlier today, Governor Murphy unveiled his final budget proposal for Fiscal Year 2026. The proposal includes critical revenue-raising measures, such as an expanded fee on property sales over $1 million, but also cuts grant funding for programs that provide essential services to working families across the state. While Governor Murphy followed through on his commitment to fully funding public schools and pension obligations, the structural deficit remains over $1 billion with a surplus that would cover barely a month of government operations in the event of an economic downturn. In response, New Jersey Policy Perspective (NJPP) issues the following statement:
Nicole Rodriguez, President, NJPP:
“New Jersey’s state budget desperately needs new revenue to make health care, housing, and transit more affordable for working- and middle-class families while addressing the widening structural budget deficit. With federal funding cuts looming on the horizon, the Governor’s budget proposal takes an important step towards fiscal responsibility by increasing revenues through targeted measures like the expanded realty transfer fee while maintaining full funding for key commitments for public schools and pensions.
“However, even with these efforts, the budget still leaves the state vulnerable — failing to close the structural deficit or build a surplus ample enough to withstand federal cuts to critical programs like Medicaid. While families are struggling with basic costs, the proposed budget does not expand the Child Tax Credit or income assistance for working-class households, and it cuts back on grant funding for nonprofits and community programs. Yet, the budget finds room to fund StayNJ, an expensive homeowner subsidy program that would help wealthy households, even though it fails to meet the required fiscal responsibility guardrails set out in the original law.
“Rather than diverting funds from affordable housing and other essential services to fill budget holes, New Jersey needs more progressive, sustainable revenue solutions to build an equitable state for all residents — not one that forces cutbacks for the programs they rely on.”
Read NJPP’s latest budget analysis, What to Look for in the New Jersey Budget for Fiscal Year 2026.
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