N.J. Chamber of Commerce President and CEO Tom Bracken statement on the Fiscal Year 2026 State Budget
Trenton NJ, we are deeply disappointed in this year’s budget. It marks the eighth consecutive year of overspending and continues to show a troubling lack of focus on growing New Jersey’s current and future economies. This budget makes the state less affordable, less competitive, and less business friendly. Rather than driving progress, it maintains a status quo that has failed to deliver real economic success – and it’s not what New Jerseyans want, as reflected in a recent Rutgers-Eagleton poll showing widespread dissatisfaction with the state’s economic direction.
The Positives
While we commend the governor and Legislature for including some positive elements in this year’s fiscal plan – such as support for manufacturers, restoration of community college funding, elimination of certain sales taxes, expedited building inspections, and increased assistance for small businesses – these measures are overshadowed by deeper concerns about the state’s long-term fiscal health.
The Concerns
The fiscal 2026 budget relies on $1 billion in tax increases – including measures that significantly impact New Jersey’s growing online gaming and sports betting industries – and draws heavily from the state’s surplus to achieve balance. We are disappointed to see significant cuts to our tourism industry. In less than one year, the FIFA World Cup will bring millions of people through New Jersey. Our tourism industry needs support now more than ever.
One of the most damaging provisions is the increased realty transfer tax on residential and commercial properties over $2 million. The employer community thought a 2% corporate business tax surcharge and a 2% corporate transit fee were bad – this is a potential 3.5% tax increase on business when they sell property! That’s a “back door” tax that is very concerning. This makes the state even less affordable and competitive by driving up costs, especially for already struggling small business owners. By applying broadly, the tax discourages investment and growth – exactly the opposite of what New Jersey needs to attract new residents and retain companies.
Using one-time resources to fund recurring expenses sets a dangerous precedent and leaves the next governor facing serious financial challenges and worsening structural deficits. To make matters worse, $700 million in unaffordable spending was tacked on in the final hours, further compounding the state’s fiscal instability.
Absent from the Budget
What is noticeably absent from this budget is a forward-looking, growth-oriented economic strategy. New Jersey continues to miss the opportunity to unleash the full potential of our business community. This budget does not do enough to encourage business investment and expansion. It overlooks the fact that sustainable, organic revenue growth is only possible through a strong private sector. Empowering businesses to thrive is the surest way to create long-term fiscal stability without burdening residents with more taxes. The budget sets us back economically.
Looking Ahead
This budget only steepens the economic mountain our next governor will have to climb – an already enormous challenge. After eight years of punitive budgets targeting the employer community, I’m hopeful that chapter is finally closing. Looking ahead, New Jersey needs a governor who will prioritize fiscal discipline, reject new taxes, and place a strong emphasis on economic development and business attraction. That is the path to real, sustainable prosperity for all New Jerseyans. It is never too late to rescue our faltering economy, but it will be how boldly our next governor responds that will determine the fate of our fiscal crisis.
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