Meeting the June 30 constitutional deadline, Governor Sherrill signed New Jersey's Fiscal Year 2027 State Budget into law. The $60.7 billion spending plan includes a full pension payment, increased school funding, continued support for NJ TRANSIT, an expansion of the Child Tax Credit, and approximately $6 billion in surplus reserves.

!n addition to the annual appropriations act, lawmakers approved a $358.8 million supplemental appropriations bill funding a wide range of state and local priorities. The package includes $174.1 million in municipal aid, funding to reimburse state and local governments for expenses associated with hosting the 2026 FIFA World Cup, additional school aid and capital funding and investments to expand New Jersey's artificial intelligence supercomputer initiative by broadening eligibility and supporting ongoing operating costs. The supplemental budget also provides targeted funding for various local infrastructure, public safety, and economic development initiatives throughout the state.

The final budget also includes significant revisions to the StayNJ property tax relief program aimed at improving its long-term sustainability while targeting relief to middle-income seniors. The maximum StayNJ benefit was reduced from $6,500 to $4,000, and the household income eligibility threshold was lowered from $500,000 to $250,000. However, lawmakers restored additional funding beyond the Governor's original proposal, allowing more eligible seniors to receive enhanced property tax relief.

Alongside the budget, the Legislature approved several revenue measures, including the Employer Healthcare Assistance Contribution (S4533), which establishes an annual assessment on certain employers based on the number of employees and dependents enrolled in NJ FamilyCare. Throughout the legislative process, the Chamber of Commerce Southern New Jersey (CCSNJ) strongly opposed the measure, arguing that Medicaid eligibility is determined by household income and family circumstances, not employer decisions, and that the assessment unfairly shifts public healthcare costs onto employers. CCSNJ also raised concerns that the assessment will place additional financial strain on nonprofit organizations that already operate with limited resources.

In addition to the Employer Healthcare Assistance Contribution, CCSNJ expressed concerns with several business tax provisions included in the budget package, including the temporary cap on Net Operating Loss (NOL) deductions and modifications to the Alternative Business Calculation (ABC) adjustment for pass-through businesses. CCSNJ will continue advocating for policies that promote economic growth and preserve New Jersey's competitiveness.

CCSNJ remains concerned about the cumulative impact of the FY2027 budget package on New Jersey's business climate. While the Chamber appreciates continued investments in economic development, transportation, innovation, higher education, and shared services that benefit South Jersey, employers continue to face an increasing number of taxes, assessments, regulatory requirements, and compliance obligations. As businesses make decisions about where to invest, hire, and grow, they evaluate the state's overall cost of doing business and the predictability of its regulatory environment.

Separately, the "Polluters Pay to Make New Jersey More Affordable Act" which had been scheduled for consideration by the Senate, was held from further action following significant opposition from the business community. CCSNJ has consistently opposed the legislation, citing concerns that its retroactive liability framework would create legal uncertainty, discourage investment, and increase costs for employers and consumers throughout New Jersey.

The FY2027 State Budget was approved by the General Assembly by a vote of 58-20 and by the Senate by a vote of 26-14.

Following the passage of the FY27 budget, CCSNJ President and CEO Christina Renna released the following statement:

“The Chamber of Commerce Southern New Jersey (CCSNJ) appreciates that the FY2027 budget includes several meaningful investments that will benefit our region, including funding for Rowan University's Shreiber School of Veterinary Medicine, which will strengthen South Jersey's growing life sciences sector; continued support for NJ TRANSIT, which will help sustain initiatives like SJ Connects and future transit expansion; and investments in shared services through the Local Efficiency Achievement Program (LEAP), which benefits South Jersey municipalities that have been leaders in regional collaboration.

At the same time, employers aren't reacting to a single tax increase or one new regulation. They're responding to all of it at once: higher taxes, new employer assessments, more compliance requirements, and rising legal and operating costs. That cumulative effect matters. It's particularly true in South Jersey, where many of our members are small and family-owned businesses competing directly with lower-cost neighbors in Pennsylvania and Delaware for talent and investment. Every additional cost widens that gap.

That is the lens through which we view the broader package of legislation advancing alongside this budget, including the proposed Employer Healthcare Assistance Contribution, business tax increases, and additional regulatory requirements. We also remain concerned about the continued growth in overall state spending, which reflects a broader, longstanding pattern in the budget process rather than any single decision

As businesses make decisions about where to invest, hire, and grow, they evaluate the overall business climate. CCSNJ looks forward to working with the Governor and Legislature to build on these positive investments while pursuing policies that strengthen New Jersey's competitiveness, encourage private investment, and support continued economic growth throughout South Jersey.

We also remain concerned about the continued growth in overall state spending, which reflects a broader, longstanding pattern in the budget process rather than any single decision.”

To read the CCSNJ's FY2027 State Budget written testimony, click here. 

Please reach out to Hilary Chebra, Director, Government Affairs at hchebra@chambersnj.com if you have any questions.