Gov. Sherrill signs $60.7B New Jersey budget with property tax relief, pension funding
TRENTON, N.J. — Gov. Mikie Sherrill on Tuesday signed New Jersey’s $60.7 billion fiscal year 2027 budget into law, highlighting record property tax relief, increased school funding, a larger child tax credit and a full pension payment without raising taxes on individual residents.
The spending plan matches the amount proposed by Sherrill in March and includes a $6.084 billion surplus and a projected structural deficit of $1.35 billion, down from more than $3 billion when she took office in January, according to the governor’s office.
“When I took office, I promised New Jersey families that affordability would be the north star of every decision we made. With the passage of our first budget, we are delivering on that promise,” Sherrill said. “It is an affordability budget that takes on the rising costs of housing, health care, and property taxes while standing up to Trump’s chaos and cuts. It is the most fiscally responsible budget in years. It cuts our structural deficit in half and puts us in a stronger position for the future without raising taxes on individual New Jerseyans. This budget reflects our values, protects our future, and ensures doors to opportunity remain open in New Jersey.”
The budget includes more than $4.1 billion in property tax relief through the ANCHOR, Senior Freeze and Stay NJ programs. The Stay NJ program was revised to provide higher benefits to seniors with lower and middle incomes, with maximum annual benefits ranging from $4,000 to $6,500 depending on household income.
The spending plan also increases the state’s Child Tax Credit by 25% for three tax years, benefiting approximately 217,000 tax filers with children.
State Treasurer Aaron Binder said the budget balances affordability with fiscal responsibility.
“This budget demonstrates a steadfast commitment to fiscal discipline, maintaining a full pension payment, responsible surplus, and support for shared priorities like property tax relief and school funding,” Binder said. “I’d like to thank all who’ve been engaged in the process of crafting this budget, including legislators on both sides of the aisle for their partnership and careful consideration of our proposals; stakeholders and members of the public who shared ideas that helped shape the final budget; and staffs of the Department of the Treasury and Office of Legislative Services for their integral work behind the scenes to ready and deliver the budget for the people of New Jersey.”
The budget provides $7.3 billion for the state pension system, marking the sixth consecutive full pension payment. According to the governor’s office, Sherrill is the first governor in decades to fully fund the pension system during the first year of an administration.
It also includes a record $12.4 billion in K-12 school funding and a record $1.4 billion for preschool education.
Senate President Nick Scutari praised the agreement reached between the governor and lawmakers.
“I want to thank Governor Sherrill, Speaker Coughlin and my Senate colleagues for working together to produce a budget that maintains our emphasis on affordability and continues our commitment to fiscal responsibility,” Scutari said. “While our residents are forced to contend with cost increases due to economic policies in Washington, we made affordability our top priority by delivering record property tax relief, expanding the Child Tax Credit for working families, and strengthening support for children’s mental health services. Even with difficult fiscal choices, we remained focused on preserving the investments that improve quality of life, strengthen our communities, and create greater opportunity for residents across the state. This budget reflects our commitment to responsible governing while ensuring New Jersey remains a place where families can succeed and our economy can continue to grow.”
Assembly Speaker Craig Coughlin said the budget protects residents from anticipated federal funding reductions while maintaining fiscal discipline.
“The Fiscal Year 2027 budget delivers for New Jersey families and carries forward the progress we’ve made in the Legislature to make New Jersey a more affordable place to call home while being responsible stewards of the people’s money. I’m especially pleased to pass a budget that includes another year of record property tax relief for New Jerseyans, including our decision to make StayNJ sustainable for retirees, so that homeowners can count on that benefit being there for them,” Coughlin said. “The budget maintains a healthy surplus while cutting the structural deficit by half, and safeguards the State against an anticipated loss in federal funding, and we did this without raising taxes on New Jersey families. We’re proud of the way this budget sticks up for our neighbors, our communities, and our families.”
Among other investments, the budget includes nearly $1.1 billion in operating support for NJ Transit, approximately $2.1 billion for the State Transportation Capital Program, $582 million for child care assistance, $6.9 billion in state funding for NJ FamilyCare, $35 million for homelessness response programs and $11 million for the Bringing Veterans Home initiative.
The budget also allocates funding for technology upgrades across state government and supports new transparency initiatives, including the state’s Budget Report Card and Permitting Dashboard.
