Sherrill administration reports higher April revenues, reduced deficit in proposed N.J. budget
TRENTON, N.J. — Gov. Mikie Sherrill and State Treasurer Aaron Binder announced Tuesday that April tax revenues exceeded projections, helping reduce New Jersey’s projected structural deficit and increase the state’s anticipated budget surplus for fiscal year 2027.
According to the administration, stronger-than-expected April revenue collections, combined with an additional $50 million in proposed spending cuts, lowered the projected structural deficit to below $1.5 billion while increasing the projected surplus to nearly $6 billion.
The announcement came during testimony before the Senate Budget Committee as lawmakers continue reviewing the proposed FY 2027 state budget.
“Increased revenue is welcome news, but we have to remain clear-eyed about the fiscal challenges ahead. Real national and global uncertainty, from President Trump’s illegal tariffs to his ongoing war in Iran to federal cuts to Medicaid, will impact New Jersey’s economy as our state grapples with a serious structural deficit,” Sherrill said. “I am making disciplined, responsible choices now to both protect our fiscal stability while continuing to create long-term opportunity for New Jersey families. I will continue to fight for an affordability budget that drives down costs, reins in spending to reduce the deficit, and ensures every taxpayer dollar delivers real, meaningful returns for New Jersey’s future.”
State officials said the updated spending reductions reflect the administration’s focus on long-term fiscal stability and affordability amid broader economic uncertainty.
“I’m pleased to report that because of a combination of additional cuts and higher revenues, the FY 2027 projected structural deficit has been further reduced by $200 million,” Binder said. “As we move forward with the budget process, we hope to identify additional savings opportunities with an eye toward further reducing the structural deficit.”
The administration also updated the state’s online budget “Report Card” to reflect the revised projections and spending changes.
