TRENTON, N.J. — Democratic leaders announced an agreement on New Jersey’s fiscal year 2027 budget this week, while Senate Republicans criticized the process and renewed calls for additional tax relief and spending reforms.
Gov. Mikie Sherrill, Senate President Nicholas Scutari and Assembly Speaker Craig Coughlin said they had reached an agreement on a $60.7 billion spending plan ahead of the June 30 budget deadline.
“We are pleased to have worked closely together to reach an agreement on an FY 2027 budget that makes New Jersey more affordable and protects our state from the Trump Administration’s dangerous policies that harm residents.
“The $60.7 billion budget provides tax relief to New Jerseyans who need it most while investing in our shared future with an expanded Child Tax Credit benefit for families. It offers the most property tax relief in the state’s history, ensuring StayNJ is a sustainable benefit retirees can count on.
“At the same time, this budget cuts the state’s structural deficit in half, continues to fully fund pensions, and increases the budget surplus we need to fight the Trump Administration’s unprecedented attacks on Medicaid, food assistance, affordable health care, and jobs – all of which are increasing costs for New Jerseyans.
“We are proud that this budget agreement will help families across New Jersey and look forward to its passing in the coming days.”
Shortly after news of the agreement emerged, Senate Republican budget leaders questioned the details of the proposal and criticized what they described as a lack of transparency in the budget process.
In a joint statement, Senate Republican Budget Officer Declan O’Scanlon and Sens. Michael Testa, Doug Steinhardt and Carmen Amato raised concerns about potential tax increases, school funding allocations and the use of remaining federal COVID-19 relief funds.
“Transparency matters and the lack of it speaks volumes. How much of the proposed $1 billion in tax increases is actually part of the budget deal? How much is a hidden bailout for Jersey City and Newark after years of fiscal mismanagement by their mayors? How much is political pork for a handful of towns’ tiki bars while 500 other municipalities and their property taxpayers get stuck with flat funding and higher bills from Trenton?
“How much political favoritism is being directed to select school districts while hundreds of other schools and their taxpayers face cuts or are denied the formula increases they were promised? How is the remaining $2 billion in unspent COVID funds being shifted around behind closed doors, and what political favors are attached to those decisions?
“The public doesn’t know. Everything is being negotiated behind closed doors, and even the final budget won’t answer those questions. A new governor may put a fresh coat of paint on the process, but it’s still the same broken state budget—one that treats fairness, transparency, and taxpayers as an afterthought.”
Republican lawmakers also renewed calls for Democratic leaders to consider GOP budget proposals, including blocking new taxes and fee increases, expanding tax relief programs, increasing school aid and restoring funding for certain nonprofit service providers.
Under Senate rules, Republican members also released budget resolutions outlining proposed changes to Sherrill’s fiscal year 2027 budget proposal.
The Legislature is expected to consider the budget package in the coming days before the start of the new fiscal year on July 1.
