Gov. Mikie Sherrill and legislative leaders appear to have a budget deal in place for the $60.7 billion originally proposed in March, the New Jersey Globe has confirmed.
The agreement includes an additional $100 million for Stay NJ, a property tax relief program for senior citizens championed by Assembly Speaker Craig Coughlin; Sherrill had sought to reduce the program when she introduced her budget. The deal will reduce the amount some seniors receive and increase the minimum income requirements for eligibility, directing more benefits to those at the lower end of the income scale.
Sherrill has agreed to roughly $35 million in cuts to her proposed budget from the legislature and has identified other savings from within the executive branch.
The first-term governor has also agreed to increase the childcare tax credits and to restore some programs not included in the original budget – including earmarks requested by legislators, sometimes known as Christmas Tree items – as long as the total spending plan remained intact. Some of those details have not yet been finalized.
The deal looks to offer wins to Sherrill, Coughlin and Senate President Nicholas Scutari. New Jersey avoids a fight between the governor and lawmakers of her own party, and this is the first state budget in at least a decade to come in exactly where the governor wanted it. In recent years, spending has increased by nearly $1 billion over what was initially requested. The accord is also good news for the two legislative budget chairs, Senator Paul Sarlo and Assemblywoman Eliana Pintor Marin.
The budget committee is expected to return later this week, and the Legislature will race to pass the budget before the June 30 deadline.
Update: In a statement released on Tuesday afternoon, Sherrill, Scutari, and Coughlin stated: “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.”