A Message from President & CEO Tom BrackenAs New Jersey’s fiscal year 2026 budget deadline approaches, the stakes have never been higher for our economy, our employers, and our future. In just one month, Governor Murphy and the Legislature must finalize a budget that either sets us on a sustainable path, or pushes us further toward a fiscal cliff. We must choose wisely.
Despite early warnings of austerity, Gov. Murphy’s proposed $58.1 billion budget does not reflect restraint. Instead, it mirrors a troubling pattern we’ve seen over the past eight years: record-high spending, tax increases, and minimal investment in the economic engines that keep New Jersey running – its businesses. The result? A shrinking revenue base and eroding fiscal stability.
Worse still, the current budget is all about “today,” with virtually no investment in “tomorrow.” New Jersey lacks a long-term, comprehensive economic plan to grow our economy and ensure future prosperity. That’s not just short-sighted — it’s dangerous.
According to a NJ Spotlight News analysis, the budget pours over $23.2 billion into school funding, public pensions and property tax relief — three areas that desperately need reform, not just funding — yet offers no clear path to sustainable solutions. While the Chamber believes these are all critical and worthy initiatives, at the same time, there is virtually no money allocated to the business community, where smart investment could pay major dividends through job growth, expanded tax revenues, and increased competitiveness. We are weakening the backbone of our economy — our small and middle-market businesses — not only through tax hikes, but also by cutting funding for the very institutions that support them. How long will this inequity toward our businesses be tolerated?
As a remedy, we propose dedicating just 5% of this $23.2 billion – roughly $1.16 billion – to support targeted state economic growth initiatives that attract new investment and help existing New Jersey businesses thrive. These strategic investments would drive job creation, expand our tax base, and strengthen the very communities that rely on well-funded public services. Supporting our business community is not a trade-off—it’s a multiplier.
Alarm bells ringing
Since 2016, state spending has grown by nearly 70%, jumping from $34 billion to more than $58 billion. In the past year, New Jersey’s economic ranking has dropped from 24th to 31st according to U.S. News & World Report. We now rank 49th in fiscal stability – and 45th in economic opportunity. This is not a coincidence. It is a consequence of a state budgeting approach that ignores the simple truth: you cannot spend more while earning less.
While this budget makes some effort to reduce overhead, it falls short of the urgency this moment demands. The state is facing a structural deficit that could reach $26.8 billion by 2029 under pessimistic projections, with our surplus disappearing as early as 2027. Even under the rosiest forecast, we are looking at an $8.8 billion shortfall. All this is according to a report from Rowan University’s Steve Sweeney Center for Public Policy.
The alarm bells are not just theoretical. April’s corporate business tax collections declined by 18% compared to last year. Certified Public Accountants across the state – those who understand finance best – are overwhelmingly pessimistic. According to a survey by the NJ Society of CPAs, 80% believe this budget will make New Jersey’s economy worse, and nearly half believe it will make it significantly worse.
Worse still, the proposed budget includes $1.2 billion in new taxes and fees – from gaming and real estate to warehouse deliveries and cell phones. These aren’t just numbers on a spreadsheet; they’re additional burdens on businesses already navigating inflation, supply chain disruptions, and workforce shortages.
Complicating matters is the prospect of deep cuts to federal funding for Medicaid, Medicare, and the Supplemental Nutrition Assistance Program, Speaker Craig Coughlin said at a recent New Jersey Chamber of Commerce Business Roundtable event. “If they cut $10 billion, how do we fill that?” he asked.
It’s time for the governor and Legislature to treat this moment as the economic emergency it is. Here’s a path forward:
Cut Spending Thoughtfully
We don’t need to gut essential services, but we do need to eliminate inefficiencies and reallocate funding toward initiatives that produce returns. Let’s stop expanding programs without a sustainable plan to fund them.
Stop the Tax Hikes
The last thing struggling businesses need is another reason to scale back or relocate. Tax increases on cannabis, gaming, and real estate don’t just hurt those industries, they ripple across the entire economy. The proposed $2-per-truck warehouse fee is just one example of a tax that will raise costs for every consumer while discouraging logistical investment in New Jersey.
Support the Employers Who Power Our State
Reinvest in the institutions that help our businesses grow: the New Jersey Economic Development Authority, the Business Action Center, and our Small Business Development Centers. Restore funding to the Main Street Recovery Fund, which was slashed by over 66%. Just $9 million remains – an insult to our small business community, which employs nearly half of our private workforce. As already mentioned, we can pay for economic growth programs by reallocating 5% of the over $23.2 billion to earmarked for school funding, public pensions, and property tax relief.
Invest in Workforce Development
A strong economy depends on a skilled workforce. Increase funding for higher education and job training to ensure our residents are prepared for tomorrow’s economy.
New Jersey’s employers are not asking for handouts. They are asking for the chance to thrive — to grow, to hire, and to invest in the state’s future. But that requires a budget that prioritizes economic growth and fiscal responsibility. Both are essential. One cannot succeed without the other.
This budget is our last chance to correct course — or we leave a fiscal mess for the next administration to clean up.
The time for delay is over. The deadline is approaching. Let’s get this right. For our businesses. For our workers. For New Jersey.
This message was originally published in BINJE