What they’re saying: Reactions to Gov. Sherrill’s first state budget address

New Jersey Governor Mikie Sherrill delivered her inaugural state budget address on Tuesday, March 10, proposing a $60.7 billion spending plan for Fiscal Year 2027, which begins July 1 and runs through June 20, 2027.

The budget includes $2 billion in spending cuts, a sixth consecutive full pension payment, and record K-12 education funding. Her plan has drawn some criticism for a new per-employee Medicaid assessment on businesses, reductions to the StayNJ property tax relief program for seniors, and nearly $1 billion in new business taxes. The budget proposals arrive against a backdrop of federal uncertainty, with potential cuts to Medicaid and SNAP adding pressure to state finances.

Business groups, policy organizations, environmental and housing advocates, civil rights organizations, educators, and leaders from both parties weighed in. Here is what they are saying:

Overall reactions

“Today the Sherrill administration proposed an attentive budget through a transparent process, as promised. There is intent with this budget to find efficiencies and the start of necessary, and yes, difficult, spending reductions to right our fiscal ship after years of unsustainable budgets by the previous administration.” – Michele Siekerka, President & CEO, New Jersey Business & Industry Association

“Governor Sherrill’s budget is an encouraging start, but cuts alone won’t build a stronger New Jersey. If we’re serious about investing in communities and creating opportunities for working families, we need real revenue and that means asking wealthy individuals and large corporations to pay their fair share.” – Peter Chen, Senior Policy Analyst, New Jersey Policy Perspective

“We appreciate Governor Sherrill’s recognition of the serious fiscal challenges facing New Jersey and her commitment to affordability. Her proposals to scale back certain corporate tax breaks are an important step toward making the tax code fairer. But the math is clear: the scale of the problem demands a broader approach. At a time when Trump-era tax cuts delivered massive windfalls to the wealthiest households and large corporations, New Jersey cannot take progressive revenue options off the table.” – For the Many

“Spending continues to move in the wrong direction – up and up, just like the last eight years. This is more of the same, and nothing, apparently, has changed. Overall, this budget is not a win for the people of this state and does not improve affordability in New Jersey.” –Assembly Republican Conference Leader Christopher P. DePhillips

“New governor, same old song. We have numerous revenue enhancements, or whatever the new terminology may be. For Republicans, we call it taxes, because we call it like it is. When we’re talking about the new spending in this budget, what we’re talking about is new taxes. And there’s close to $1 billion worth in this budget.” –Assembly Republican Budget Officer Brian Rumpf

Fiscal responsibility and the deficit

“I appreciate and accept the Governor’s call to make tough budget decisions in the face of federal cuts and tariffs, a slowing economy, and lower corporate tax revenue. With our budget process just starting, the Assembly is prepared to do the hard work on behalf of the people of New Jersey like we did in achieving a full pension payment and full school formula funding.” – Assembly Speaker Craig J. Coughlin

“The work ahead will require careful review and thoughtful debate as we work to keep our promise to ensure that taxpayer dollars are spent responsibly and that the needs of New Jersey residents are fully considered.” – Assembly Budget Chair Eliana Pintor Marin

Pensions and school funding
“I am also proud to see that for the sixth straight year, the budget proposes to fully fund our pension obligations, and that the Sherrill administration is making a record investment in K-12 aid to help maintain the best public schools in the nation.” – Assembly Speaker Craig J. Coughlin

“We’re proud to see the Governor continue our affordability agenda by proposing a full pension payment, preserving property tax relief for middle class families, and fully funding the school funding formula.” – Assembly Majority Leader Lou Greenwald

“We also believe it is critical that New Jersey continue making its full actuarially required pension payment. Maintaining that commitment protects the retirement security of hundreds of thousands of public workers and retirees and strengthens the state’s long-term fiscal stability.” – Chris Widelo, State Director, AARP New Jersey

Education

“Governor Sherrill sent a powerful and clear statement to every New Jersey public school parent, scholar, and teacher — that educating our children is a priority and driving innovation in our schools is of the highest importance. By doubling the state’s investment in high-impact tutoring in her first budget, the Governor is providing a clear vision to build both academic proficiency and the confidence students need to thrive in the classroom.” – Katherine Bassett, CEO, New Jersey Tutoring Corps

Property tax relief and affordability

“Once again, dedicating nearly half of the Appropriations Act to direct and indirect property tax relief sends a clear and decisive message to our taxpayers that Trenton is serious about supporting its residents, schools, and local communities.” –Assembly Speaker Craig J. Coughlin

“New Jersey remains one of the most expensive states to retire, and many older residents are struggling with rising property taxes, utility bills, and everyday costs. AARP appreciates Governor Sherrill’s continued focus on affordability and the programs that help people remain in the homes and communities they have built.” – Chris Widelo, State Director, AARP New Jersey

“The Stay NJ program was created to address New Jersey’s affordability crisis and deliver on a commitment to older residents who want to age in place. As policymakers consider adjustments, it is critical that the program does not reduce the annual benefit and continues to provide meaningful relief while keeping the promise made to the people counting on it.” – Chris Widelo, State Director, AARP New Jersey

“The first thing that Gov. Sherrill does when she comes to office is cut the most significant program for tax savings for our seniors in this state.” – Assembly Republican Budget Officer Brian Rumpf

Business taxes and the employer Medicaid assessment

“This is perhaps the most troubling part of the budget proposal for the business community. This establishes a situation where employers can be penalized even if they offer health coverage for their workers, which is already one of the largest expenses they absorb every year.” – Christopher Emigholz, Chief Government Affairs Officer, NJBIA on the proposed per-employee Medicaid fee

“This assessment could be very challenging for those businesses in retail, hospitality, childcare, and home health industries – where affordability is already a concern. Our annual Business Outlook Survey always details the great challenges our employers face when it comes to healthcare costs, so we should be looking for ways to incentivize employers to provide these benefits, rather than penalizing them for their employees using government benefits out of their control.” – Christopher Emigholz, Chief Government Affairs Officer, NJBIA

Housing, homelessness, and anti-poverty programs

“A budget is a statement of values. Today’s budget proposal makes it clear that in New Jersey, we refuse to look away as more of our neighbors, an increasing number older adults and families, do not have a safe place to sleep each night or risk their lives in extreme weather conditions because they have nowhere else to go.” – Connie Mercer, CEO, NJ Coalition to End Homelessness

“Despite the Republicans in Washington threatening our fiscal stability by advocating for dangerously short-sighted cuts to critical healthcare and safety net programs, our budget will reaffirm the State’s commitment to delivering for our residents and building a better future for all our children.”
Assembly Majority Leader Lou Greenwald

“As the Legislature reviews the Governor’s proposal, AARP will be closely examining the details to ensure that essential supports like Medicaid and SNAP remain strong for older adults and their families.”
Chris Widelo, State Director, AARP New Jersey

“I resume my call on our Congressional delegation and President Trump to reverse course on the cruel and unnecessary cuts to safety net programs like Medicaid and SNAP that will tax our budget and more importantly that of our families who will find our state’s healthcare providers and our grocery stores, bodegas, and farmers struggling to pay their bills.”
Assembly Speaker Craig J. Coughlin

“Homelessness has increased 57% over the past three years, and it is estimated that more than 152,000 New Jersey residents sought homeless or homelessness prevention services last year alone. That means more people were homeless or at risk of homelessness statewide last year than the entire population of Lakewood, New Jersey’s 4th largest city. Homelessness is not inevitable. Governor Sherrill pledged today that this must be the year we effectively end veteran homelessness in New Jersey.” – Connie Mercer, CEO, NJ Coalition to End Homelessness

“We appreciate Governor Sherrill’s recognition in today’s address that housing affordability and economic opportunity are deeply connected. The housing crisis hurts everyone, especially low-income families and people of color. While the state’s new affordable housing law is a major step forward, much more needs to be done.” – Al-Tariq Witcher, Managing Director of External Affairs, Fair Share Housing Center

“New Jersey should fully fund the Affordable Housing Trust Fund and direct the state’s new mansion tax toward affordable housing production. The Trust Fund is often the only source of funds for smaller, community-driven, shovel-ready developments, which do not qualify for federal funding.” – Al-Tariq Witcher, Managing Director of External Affairs, Fair Share Housing Center

“We are beyond grateful to Governor Sherrill for taking an essential first step today. But the job is not done. We urge the New Jersey Legislature to include this life-saving funding in the final budget, and we look forward to continuing to work with them alongside Governor Sherrill and her team to ensure that in New Jersey, everyone has a safe place to call home.” – Connie Mercer, CEO, NJ Coalition to End Homelessness

“With housing costs at record highs, now is the time for bold action to protect and expand on this progress — especially given the unprecedented federal budget cuts that threaten hard-working families with eviction and homelessness.” – Al-Tariq Witcher, Managing Director of External Affairs, Fair Share Housing Center

Civil rights and justice

“A state’s budget directly reflects its values and most pressing priorities. Funding cannot change the past, but deliberate investment in repairing harm can build a more equitable future for all.” – Ami Kachalia, Campaign Strategist, ACLU of New Jersey

“New Jerseyans have been clear that they want lawmakers to champion racial and social justice to truly invest in the justice, safety, and well-being of our communities — and create a better New Jersey for everyone who calls our state home. That includes increasing funding for the Detention and Deportation Defense Initiative, fully funding the Housing Justice Project, and continuing to reinvest in communities harmed by marijuana criminalization.” – Ami Kachalia, Campaign Strategist, ACLU of New Jersey

“As New Jersey, and the nation, responds to changes in federal policies that increasingly target community members and place them at risk, we hope Gov. Sherrill takes this opportunity to prioritize rights and justice for all in her first budget address. It is time for New Jersey to put its money where its morals are.” – Ami Kachalia, Campaign Strategist, ACLU of New Jersey

Environment and climate

“Right now, every dollar spent cleaning up after floods and rebuilding our infrastructure comes out of the pockets of New Jersey families while big fossil fuel companies pay nothing. It’s a silent tax on all of us that drives up the cost of living.” –Matt Smith, New Jersey State Director, Food & Water Watch

“New Jersey families shouldn’t have to pay one more dollar for climate damages until the polluters who caused this mess pay their fair share. It’s the right thing to do, and it’s the smartest way to fix our infrastructure and make historic investments in our state at no cost to taxpayers.” –Amy Goldsmith, New Jersey Director, Clean Water Action

“Making polluters pay is how we can fund road repairs, flood prevention, and upgrades to our energy grid. It’s how we invest in our schools, public health and safety. As state lawmakers look for ways to make the state more affordable and improve our infrastructure and essential services, the Polluters Pay Act gives them a way to do both.” –Doug O’Malley, Director, Environment New Jersey