The basics:
- Business groups praised Gov. Mikie Sherrill’s proposed $60.7B New Jersey budget for spending cuts, infrastructure investment, permitting reforms
- Several organizations raised concerns about corporate tax changes, a proposed employer Medicaid assessment
- Policy advocates applauded proposals to close corporate tax loopholes, expand support for working families
- FY 2027 budget proposal begins months-long legislative process as stakeholders weigh its fiscal, economic impact
Reaction is beginning to pour in following Mikie Sherrill’s first budget proposal as governor, a $60.7 billion spending plan.
The proposal, which you can read more about here and here, has drawn early responses from business leaders, advocacy groups and local officials across the state.
Many groups praised the administration’s focus on fiscal discipline, infrastructure investment and reforms, such as permitting improvements and pharmacy benefit manager oversight. However others raised concerns about proposed corporate tax changes and a new employer Medicaid assessment.
Here is a look at how some of the state’s top business organizations, policy advocates and municipal leaders are reacting to the governor’s inaugural budget plan.
New Jersey Business & Industry Association
NJBIA President and CEO Michele Siekerka said Sherrill 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,” said Siekerka.
She noted NJBIA appreciates that the budgetary challenges are not exclusively being thrust upon the business community. “Rather, there is a better balance between spending cuts and the business tax changes being proposed.”
Siekerka pointed to positives including the $2 billion in spending cuts, reduction of the structural deficit, restructured property tax relief, a sixth consecutive full pension payment and the commitment to job growth within the New Jersey Department of Environmental Protection to help expedite permitting.
“Obviously we are concerned about a new employer Medicaid assessment and technical changers to business tax policy that will negatively impact our job creators,” said Siekerka. “However, we already have ideas to bring to the administration and the Legislature that we believe mitigate the impacts.”
New Jersey Chamber of Commerce
Tom Bracken, president and CEO of the New Jersey Chamber of Commerce, congratulated Sherrill. He also expressed his appreciation for the administration’s ongoing outreach to the business community.
“We commend the governor for proposing approximately $2 billion in spending reductions. Taking steps to control costs sends an important signal that New Jersey is serious about improving its long-term fiscal outlook.
“We are also encouraged to see continued investments in infrastructure, support for child care, and initiatives aimed at reducing energy costs. These are important priorities that help strengthen New Jersey’s economy and improve quality of life for residents and employers alike,” said Bracken.
He also applauded proposals to reduce business filing fees, provide further funding for the New Jersey Business Action Center, maintaining funding for the Main Street Recovery Fund, creating the permit dashboard and more. But Bracken pointed to concerns about the tax proposals. He says the changes would increase costs for employers, many of who are impacted by the corporate transit fee.
“Policies such as these risk making New Jersey less competitive than other states, particularly for larger companies that provide significant employment and investment in our communities,” he explained.
Policies such as these risk making New Jersey less competitive than other states, particularly for larger companies that provide significant employment and investment in our communities
— Tom Bracken, president and CEO, New Jersey Chamber of Commerce
“Since taking office, Gov. Sherrill has aggressively addressed several significant challenges facing our state. Her budget proposal reflects that same urgency while beginning the process of restoring fiscal stability. However, you cannot cut your way to prosperity. Expense reductions must be paired with aggressive growth initiatives that generate sustainable, organic revenue from business expansion.”
Chamber of Commerce of Southern New Jersey
Christina Renna, president and CEO, Chamber of Commerce Southern New Jersey, said the budget contained reason for encouragement for the South Jersey business community, as well as questions that deserve careful consideration.
“We welcome the Governor’s commitment to energy diversity, permitting reform, and housing affordability — all issues that directly affect our region’s ability to attract investment, grow businesses, and retain a workforce,” said Renna. “Transportation is of particular importance to us, and we are pleased to see continued investment in infrastructure that connects South Jersey’s workers and employers. The Chamber has been an active advocate in this space and looks forward to continuing that partnership with the administration.”
Renna then addressed the corporate tax provisions – saying she is reviewing the implications for CCSNJ’s members, as well as the proposed Medicaid mandate.
“Many of our member companies employ exactly the workforce this provision targets, and the impact on employers of all sizes across our region is a conversation we intend to be part of as the budget moves through the Legislature,” said Renna. “In a region that borders both Pennsylvania and Delaware, competitiveness is not theoretical – policies that raise the cost of doing business here have consequences that our neighbors are happy to absorb.
“Governor Sherrill has made clear she intends to govern differently. The Chamber of Commerce Southern New Jersey looks forward to being a constructive partner in that effort over the next several months.”
Watch Gov. Mikie Sherrill’s budget address below. And read more of our coverage here.
Commerce & Industry Association of New Jersey
In a statement, CIANJ said, “CIANJ applauds Governor Sherrill for focusing on streamlining the permitting process, bringing more transparency and accountability to the budgeting process and increasing government efficiencies in her Budget Address today. These are improvements the business community has been seeking for years, and we look forward to working with the Governor, her team, and the Legislature on making these a reality.
CIANJ also supports the proposed investments in our infrastructure, higher education system, healthcare and reducing the costs of energy. These are all vital in building and maintaining a robust and viable economy and we hope more can be done. We are concerned with the proposed elimination of certain corporate tax deductions and what impacts they will have on our businesses, but we look forward to continuing the conversation and working towards a balanced budget which benefits all of New Jersey.”
BioNJ
Debbie Hart, president and CEO of BioNJ, also congratulated Sherrill on her inaugural Budget Address – saying her organization is reviewing the proposal, while recognizing the difficult fiscal environment underlying the “courageous proposals and difficult decisions the governor faced.”
“BioNJ is carefully reviewing the Governor’s proposals for any potential impact on the life sciences industry, including the Net Operating Loss (NOL) program and other key initiatives that support innovation and economic growth in New Jersey,” said Hart. “We will work to ensure that the ROI these programs deliver will continue to be realized even in the face of changes.
Meanwhile, we are encouraged by the Governor’s commitment to work with the Legislature on meaningful pharmacy benefit manager (PBM) reform, given the significant role PBM practices play in driving higher drug costs for Patients. Increasing transparency and accountability in the PBM system is essential to ensuring that savings reach Patients and that the prescription drug market functions fairly and equitably,” Hart continued.
“BioNJ looks forward to working with the Governor and the Legislature to advance reforms that bring greater clarity to the system and provide meaningful relief to Patients.”
HealthCare Institute of New Jersey
Chrissy Buteas, president and CEO of the HealthCare Institute of New Jersey (HINJ), said that common-sense PBM reform is one of the most effective and immediate ways to lower health care costs.
“And we commend Governor Sherrill for her continued focus on New Jersey patients and affordability. From her Congressional tenure to her campaign proposals, the Governor has advocated for PBM reform as a thoughtful and balanced approach to lowering costs, and she’s working with a true sense of urgency to deliver real savings for patients,” said Buteas. “Less than half of the money spent on prescription medicines actually goes to the company that makes the medicine – the rest goes to middlemen within the supply chain, like insurers and PBMs.
“Whether enforcing current or enacting new legislation and regulations, bringing more transparency and reducing profiteering incentives within the PBM structures will bring real and immediate relief to patients. We will work with the Governor and the Legislature to enact these proposals as quickly as possible.”
New Jersey League of Municipalities
Elsinboro Township Mayor and NJLM President Sean Elwell said, “New Jersey’s Mayors and municipal officials understand Governor Sherrill’s goal to eliminate the long-standing structural deficit and balance the state budget because the 564 municipalities do this every year without fail while providing critical services to their residents, fully funding their health care and pension obligations; delivering 100% of the budgeted amount to schools and county where they act as the collection agent; and covering the total cost of tax appeals, including the school and county portions.
“All of this is accomplished while not raising the municipal tax levy by more than 2% annually despite perpetual increases in all types of insurance including workers’ compensation, general, health care, and cyber; dramatic utility cost increases; and costs for unanticipated disasters with an inflation rate exceeding 2%.”
Elwell said Sherrill did not create this fiscal problem – but has the opportunity to help solve it.
“We are ready and look forward to working with her and her administration to come to an equitable solution so that the state and municipalities can grow and thrive together.”
New Jersey Citizen Action
New Jersey Citizen Action and New Jersey Policy Perspective took a different stance on the tax proposals – applauding those proposals in their analysis of the budget plan.
“Gov. Mikie Sherrill has been dealt a perfect fiscal storm for her administration’s first budget, and her proposed budget demonstrates she’s willing to make some hard choices to do what’s best for our state, particularly for working families,” said Maura Collinsgru, New Jersey Citizen Action director of policy and advocacy. “It’s a reform-minded budget that seeks to tackle the brutal economic crisis millions of New Jerseyans face because of draconian federal cuts. It also makes strides in addressing the wrongs of past fiscal decisions that strain both state resources and the household budgets of state residents.
“We applaud Governor Sherrill’s proposals to eliminate some business tax deductions and lower the thresholds for the property tax relief program Stay NJ. Her proposal to impose penalties on large employers who have been raking in profits while their employees are forced to rely on our state’s Medicaid program for health insurance is an important step to addressing the socio-economic imbalances troubling our state. We also applaud the governor‘s proposed supports for working families that include lowering utility bills and investing in pre-K and childcare, all essential needs for state residents.”
New Jersey Policy Perspective
NJPP President Nicole Rodriguez said, “Gov. Sherrill’s first budget reflects a serious attempt to grapple with a difficult fiscal moment, and in several areas, it reflects the right priorities.
“Reforming Stay NJ to limit benefits for homeowners earning more than $250,000 is a smart, targeted fix that directs relief to those who actually need it. Expanding utility help, child care assistance, and preserving the Child and Earned Income Tax Credits send the right signal about whose side this budget is on,” said Rodriguez. “Closing corporate tax loopholes — reining in deductions that have benefited large companies at the expense of small businesses and working families — is exactly the kind of structural reform New Jersey needs more of.
“At the same time, this budget plan only gets us part of the way there. The Governor is right that much of New Jersey’s fiscal pressure stems from federal dysfunction and the Trump administration’s devastating cuts to programs that families depend on. But the answer to that pressure cannot only be spending cuts, particularly when immigrant families are under attack, one in nine New Jersey children still lives in poverty, and communities across the state are counting on the programs this proposal funds,” she continued.
“And as the budget process moves forward, there are real questions about where nearly $2 billion in cuts will land, and who will bear the burden. To truly protect New Jerseyans from the turbulence ahead, the state must go further in asking wealthy individuals and powerful corporations to contribute their fair share. NJPP is encouraged by this start and committed to working with the Governor and the legislature to build on this.”
New Jersey Hospital Association
“The New Jersey Hospital Association applauds Governor Sherrill’s investments in youth mental health through SPARK and the Social Media Resource Center, while taking on pharmacy benefit managers, whose opaque, rebate‑driven business models favor high‑priced drugs, inflate list prices, and add marked‑up fees that drive up health care costs for patients and plans,” said NJHA President and CEO Cathy Bennett. “We share the Governor’s goal of ensuring public resources are used effectively. NJHA thanks Governor Sherrill for recognizing the impact that federal funding cuts will have on patients and providers.
“We look forward to reviewing the details of the budget proposal and working closely with the administration to ensure any changes support hospitals’ ability to provide timely, high-quality care to every New Jersey resident.”
Just the beginning
Of course, the Budget Address and FY 2027 spending plan are just the starting line – now the real fun begins as the budget process plays out over the coming weeks and months. There will be plenty more reaction and more to come. Please stay with NJBIZ for the very latest.
Editor’s note: This story was updated at 11:57 a.m. March 11, 2026, to include a statement from the New Jersey Hospital Association.
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