Proposed Budget - Fiscal Year 2027
On March 10, New Jersey Governor Mikie Sherrill presented a state budget for fiscal 2027. The proposal calls for total appropriations in fiscal 2027 of $60.7 billion, a 1.6 percent increase compared to adjusted appropriations proposed for fiscal 2026. Of the total, 40.2 percent will be distributed as State Aid to school districts, community colleges, municipalities and cities and 34.3 percent will be used for direct services (known as “Grants-In-Aid”) such as health care coverage for low-income residents, social services and property tax relief programs. The remaining appropriations are comprised of spending on Executive Operations (8.9 percent), State Employee Benefits, Rent & Utilities (9.2 percent), Debt Service (5.3 percent), Legislative & Judiciary (1.8 percent) and Capital (0.3 percent). General Fund and Property Tax Relief Fund appropriations make up most of the budget, at a combined $59.6 billion, with general fund spending at $35.5 billion (a 1.9 percent annual decrease) and property tax relief fund spending at $24.1 billion (a 7.5 percent annual increase). Additional appropriations come from casino-related funds totaling $1.08 billion. The budget is based on estimated total state revenues of $59.1 billion, a 2.7 percent increase compared to current fiscal 2026 estimates. The fiscal 2027 budget projects an undesignated ending balance (also referred to as the general fund surplus) of $5.4 billion. In addition to the spending proposed in the governor’s budget, the state estimates it will spend $41.0 billion from funds not budgeted, including $28.0 billion in federal revenues, $3.7 billion in transportation funds, and the remaining from dedicated and revolving funds. Total state spending including budgeted and non-budgeted expenditures in fiscal 2027 is estimated at $101.8 billion, a 1.1 percent increase from estimated fiscal 2026 expenditures.