On Tuesday, March 19 the Chamber of Commerce Southern New Jersey(CCSNJ) testified at the Assembly Budget Committee, the first of two public hearings on the FY2026 State Budget as proposed by Governor Phil Murphy.

CCSNJ Director of Government Affairs Hilary Chebra argued that with the continuation of the Corporate Transit Fee, South Jersey-based businesses are being taxed for transportation services they desperately want and need but have limited access to. While the New Jersey Department of Treasury projects that NJ Transit will receive approximately $815.5 million from this fee, South Jersey remains underserved by critical transportation infrastructure and services.

To address this inequity, the CCSNJ proposed that an amount equal to 15 percent of the revenue generated from the Corporate Transit Fee be dedicated specifically to South Jersey transportation projects.

Additionally, Ms. Chebra raised concerns about the budget’s reliance on increased taxes and fees warning that the proposed $1.1 billion in new taxes would disproportionately affect South Jersey’s economy. Among the most concerning proposals are:

An increase in internet gaming and online sports wagering tax rates

A new tax on certain drone operations

A $2 truck excise fee imposed on warehouses

A proposed increase the Social Equity Excise Fee (SEEF) on adult use cannabis from $2.50 per ounce to $15 per ounce

The CCSNJ will testify again at the Senate Budget and Appropriations public hearing on Wednesday, March 26.

The CCSNJ will continue to monitor the budget hearings throughout the month of April, which will focus on the various state departments and Treasury’s revenue estimates. The Legislature will then present their budget in June with a deadline of June 30, 2025 to identify a compromise budget with Governor Murphy.

 To read the CCSNJ’s full testimony, click here.