NJBIA CEO Calls Gov. Murphy’s $58.1B Budget Proposal ‘Unsustainable’
TL/DR –
New Jersey Governor Phil Murphy’s $58.1 billion state budget proposal is unsustainable, with structural deficits that need addressing, according to NJBIA President & CEO Michele Siekerka. The budget contains over $1 billion in new taxes and unnecessary spending, including increases in the realty transfer fee and taxes on internet gaming and online sports betting, and cuts to economic growth programs like manufacturing and higher education. Siekerka suggests removing the new taxes, saving $1.2 billion, and restoring some of the counterproductive cuts, such as those to community college funding and manufacturing programs, to ensure economic development.
Gov. Phil Murphy’s $58.1bn Proposed State Budget: A Threat to Affordability
The $58.1 billion state budget proposal by Gov. Phil Murphy is “unsustainable”, according to NJBIA President & CEO Michele Siekerka. She shared these insights on News 12’s ‘Power & Politics’ show, highlighting structural deficits and newly proposed taxes as major issues.
Siekerka pointed out the state’s overspending, failure to address debt issues, and creation of new taxes. These factors, she noted, are not in line with the affordability that New Jersey residents have been demanding.
The proposed FY26 budget, due for review and approval by June 30, includes over $1 billion in new taxes and unnecessary expenditure. Counterproductive cuts have also been proposed to economy-boosting programs like manufacturing initiatives and higher education.
Problematic Taxes in the Proposed FY26 Budget
Among the “most offensive” newly proposed or expanded taxes, Siekerka listed an increased realty transfer fee, expanded sales tax on sports like bowling, and raised taxes on internet gaming and online sports betting.
She warned that a higher realty transfer fee on homes listed over $1 million could create a “compression factor” worsening the current housing shortage in New Jersey, and harm families seeking to finance retirements or end-of-life care through home sales.
Proposed higher taxes for online gaming and sports betting could also be counterproductive. Siekerka argued that these budding industries have created numerous jobs in New Jersey, which could be threatened by increased taxation.
Setting the Right Priorities
When asked on budget adjustments, Siekerka stressed the need for correct prioritization, suggesting the elimination of the proposed taxes and finding ways to save $1.2 billion instead. She also emphasized the need to restore cuts on community college funding and support manufacturer’s capacity development.
“We need to restore the $20 million cut to community colleges. Community college is the heart and soul of workforce development, and without their support, we can’t upskill,” said Siekerka.
For the full interview, visit News 12 webpage.
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