Record $58.8 Billion NJ Budget Draws Criticism Over Spending, Taxes from Business Leaders

the staff of the Ridgewood blog

TRENTON, NJ — Governor Phil Murphy signed a record-breaking $58.8 billion budget for fiscal year 2026, marking the largest in New Jersey history — and his final as term-limited governor. While the spending plan includes some relief for small businesses and education, critics say it leans heavily on tax hikes and fiscal overreach.

💰 What’s in the FY 2026 Budget?

• Total spending: $58.8 billion

• Includes $400 million in last-minute Democratic additions

• Tax increases on:

  • Online gambling and sports betting

  • Cigarettes and vaping products

• Expanded fees on high-value property sales (over $2 million)

🚨 Business Community Sounds the Alarm

Business groups across New Jersey quickly voiced concern, calling the budget unsustainable and anti-growth:

🗣️ “It marks the eighth consecutive year of overspending,” said Tom Bracken, President of the New Jersey Chamber of Commerce. “This budget makes the state less affordable, less competitive, and less business friendly.”

Bracken acknowledged a few positives, including:

• Increased support for manufacturers

• Restored community college funding

• Expedited building inspections

• Targeted small business relief

Still, he warned that relying on $1 billion in new taxes and dipping into the state’s $6.7 billion surplus could leave the Garden State vulnerable in the years ahead.

📉 NJBIA: “March Toward a Fiscal Cliff”

Michele Siekerka, President & CEO of the New Jersey Business and Industry Association (NJBIA), echoed these concerns:

“The budget has grown nearly 70% under Gov. Murphy. We need budget policies that make New Jersey more competitive and less anti-business.”

Siekerka also criticized the lack of transparency in the budget process and warned of deeper financial instability without reform under the next administration.

🏛️ Progressives Weigh In: Missed Opportunity

Even from the left, the budget drew mixed reviews. The progressive New Jersey Policy Perspective (NJPP) noted the budget:

• Relies on cash reserves to fill a $1.5 billion shortfall

• Leaves New Jersey exposed to potential federal cuts in Medicaid and food aid

“This budget represents a missed opportunity to take bold, decisive action,” said Nicole Rodriguez, NJPP President.

She acknowledged progress through the millionaire’s tax, corporate transit fee, and real estate transfer fee, but called for more proactive measures to guard against upcoming economic headwinds.

🔎 Key Takeaways

• Record-setting budget signed at $58.8B

• Heavy reliance on new taxes and surplus funds

• Criticism from both business leaders and progressives

• Calls for reform ahead of New Jersey’s 2026 gubernatorial transition

 

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