TO:                       Members of the New Jersey Senate 

FROM:                 Hilary Chebra, Director, Government Affairs, CCSNJ

RE:                        FY2026 State Budget

DATE:                   June 30, 2025

The Chamber of Commerce Southern New Jersey (CCSNJ) is the region’s largest and most influential business organization representing businesses in the seven most southern counties of New Jersey, as well as greater Philadelphia and northern Delaware. The CCSNJ has over 1,200 member companies, approximately 85 percent of which are small businesses that employ less than 50 people, as well as approximately 150 nonprofit members. Thank you for the opportunity to comment on the FY2026 state budget.

The CCSNJ continues to advocate for a more equitable distribution of Corporate Transit Fee (CTF) dollars, specifically to support transit projects in South Jersey. The CTF was implemented to close a $766 million operating shortfall for NJ Transit, and our member businesses are helping to fund the system—despite the fact that many lack meaningful access to transit services. South Jersey deserves a return on this investment.

In the coming fiscal year, the CCSNJ is committed to working with the legislature and NJ Transit to  prioritize South Jersey transportation investments. This would be a critical step toward fairness and would help address long-standing infrastructure gaps. These investments will improve regional mobility, expand access to jobs, healthcare, and education, and ensure the sustainability of vital transit services.

While we recognize that the final budget proposal scales back the Governor’s originally proposed 25 percent tax increase on internet gaming and online sports wagering, CCSNJ remains concerned that any increase, however modest, risks undermining Atlantic City’s competitiveness. As one of South Jersey’s most vital economic engines, the gaming sector must remain attractive to both operators and investors. Tax increases in this area could deter future investment and compromise ongoing recovery and growth in Atlantic City.

CCSNJ is also concerned about the increases to the realty transfer fee, which will raise the cost of selling homes valued above $2 million. This will make it more expensive to sell property in New Jersey, undermining return on investment and potentially discouraging further investment in the state’s housing market.

On a positive note, CCSNJ applauds the passage of A5687/S4407, the “Next New Jersey Manufacturing Program,” which provides $500 million in tax credits to bolster New Jersey’s manufacturing sector. Revitalizing manufacturing in South Jersey has long been a priority for CCSNJ. This program represents a significant opportunity to attract investment, create jobs, and reestablish South Jersey as a hub for advanced manufacturing.

Finally, while the $6 billion surplus included in the FY2026 budget is commendable, CCSNJ must again caution that the continued growth in state spending is unsustainable. Year-over-year increases in expenditures create structural risks that future governors may be forced to address through higher taxes on already overburdened residents and businesses. For years, CCSNJ has warned of the long-term risks associated with unchecked spending growth. It is essential that New Jersey adopt a more sustainable fiscal trajectory that avoids future tax increases and promotes long-term economic stability.

The CCSNJ looks forward to working with the legislature to ensure that South Jersey receives its fair share of investment from the Corporate Transit Fee. Thank you for the opportunity to weigh in on the FY2026 state budget.