TRENTON, N.J. — Republican lawmakers are criticizing New Jersey’s fiscal policies after the state ranked 49th in fiscal stability in U.S. News & World Report’s 2026 Best States rankings.
According to the report, New Jersey ranked near the bottom nationally in fiscal stability, receiving a lower score for long-term fiscal stability than for short-term fiscal stability. The ranking comes as Gov. Mikie Sherrill’s $61 billion budget projects the state’s surplus to decline from nearly $7.7 billion on July 1 to about $6 billion by June 30, 2027.
Sherrill has described the spending plan as “the most fiscally responsible budget in years.”
Republican lawmakers disputed that characterization during debate over the budget.
“A $6 billion surplus on a $60-plus billion budget is not healthy at all,” Assemblyman Greg Myhre, R-Ocean, said from the Assembly floor. “That’s five weeks of spending – five weeks. That’s not a good savings account.”
Republican lawmakers also argued the budget raises taxes, reduces property tax relief and school funding, and includes $253 million in last-minute spending projects.
According to U.S. News & World Report, fiscal stability is one factor used in its Best States rankings and reflects a state’s ability to maintain government finances and support public programs and services.
“While we’re finding $611 million for legislative pet projects, school districts up in the Highlands are being told there isn’t enough. In West Milford, an elementary school is closing. In Jefferson Township, high school athletics are on the chopping block,” Assemblywoman Aura Dunn, R-Morris, said during the budget debate. “These are real communities, real kids, real programs being cut because this budget leaves them underfunded by the state’s own formula.”
According to the U.S. News & World Report rankings, Wyoming, Utah and North Dakota were the nation’s top three states for fiscal stability.
