New Jersey Government Affairs Update

FY 2027 New Jersey State Budget

Governor Mikie Sherrill recently signed New Jersey's FY 2027 Appropriations Act, establishing a $60.7 billion state budget. The budget reflects the priorities outlined in the Governor's March Budget Address, reducing overall spending while avoiding tax increases on individual New Jersey residents.

The enacted budget includes a $6.084 billion surplus and reduces the state's structural deficit to $1.35 billion, down from the more than $3 billion deficit projected in January.

The budget also establishes a maximum income eligibility threshold of $200,000 for the Stay NJ property tax relief program and implements a tiered benefit structure to determine the maximum property tax relief available to eligible homeowners.

Governor Sherrill described the spending plan as "the most fiscally responsible budget in years," noting that it cuts the structural deficit in half while strengthening the state's long-term fiscal outlook without increasing taxes on individual New Jerseyans.

Several accompanying revenue measures will, however, affect businesses. These include:

• A Medicaid Assessment Fee on employers with at least fifty employees enrolled in Medicaid.

• A reduction in the Alternative Business Calculation (ABC) adjustment.

• A temporary limitation on the use of corporate Net Operating Loss (NOL) deductions.

 

Legislative Update

NESPA, through State Street Associates, continues to support AJR-59, legislation designating May 15 of each year as "Water Safety Day" in New Jersey. Sponsored by Assemblywoman Verlina Reynolds-Jackson (D-15), the resolution was unanimously approved (7-0) by the Assembly Tourism, Gaming and the Arts Committee and is now on Second Reading in the General Assembly.

The Senate companion measure, SJR-106, sponsored by Senator Linda Greenstein (D-14), remains pending before the Senate Environment and Energy Committee.

 

Political Update

With New Jersey's 2027 primary elections now less than a year away, some senators and assembly members have already announced their intentions to seek reelection.

Since a federal court eliminated New Jersey's county "line" ballot design, which historically favored organization-backed candidates, primary elections have become significantly more competitive. Incumbent legislators must now be prepared to defend their seats against challengers from across the ideological spectrum within their own political parties, making contested primaries increasingly common throughout the state.

The following Incumbent Democrats have announced their intent to run for reelection:

Senate: Sen. Jim Beach (D-6), Sen. Linda Greenstein (D-14), Sen. Joe Cryan (D-20), Sen. John McKeon (D-27), Sen. Raj Mukherji (D-33), Sen. Gordon Johnson (D-37)

Assembly: Asw. Rosie Bagolie (D-27), Asw Alixon Collazos-Gill (D-27)

The following Incumbent Republicans have announced their intent to run for reelection:

Senate: Sen. Mike Testa (R-1), Sen. Vince Polistina (R-2), Sen. Latham Tiver (R-8), Sen. Jon Bramnick (R-21)

Assembly: Asm Antwan McClellan (R-1), Asm. Erik Simonsen (R-1)

Democratic State Senator Bob Smith (D-17) announced that he will make his decision on whether or not he will seek reelection by Thanksgiving. Smith is the longtime chair of the Senate Environment and Energy Committee. Assemblyman Dan Hutchison (D-4) has already announced he will not seek reelection next year.