New Jersey

New Jersey

Budget Cycle
Annual  
Governor Submits Budget
February (4th Tuesday)
Fiscal Year Begins
July 1 
Governor Signs Budget 
By June 30

Budget Links 

FY2027 (proposed)
FY2026 (enacted)
FY2025 (enacted)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)

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.


Proposed Budget Highlights 

The governor’s budget focuses on making the state more affordable and accountable, with initiatives aimed at lowering costs for families, protecting children, increasing government transparency, and accelerating permitting processes for businesses. The budget also makes targeted spending cuts of nearly $2 billion, delivers record property tax relief, and raises additional revenue through capping the net operating loss deduction that the highest-earning businesses can claim and capping eligibility for the Alternative Business Calculation deduction so it can only be used by small businesses.

Improving Affordability

  • Curbs utility costs for residents by using off-budget funding sources to shield ratepayers from rate increases and directing the Board of Public Utilities to identify funds for another round of Residential Energy Assistance Payments (REAP).
  • Increases down payment assistance for first-time and first-generation homebuyers.
  • Directs Affordable Housing Trust Fund dollars towards new housing construction, while reducing Trust Fund diversions.
  • Delivers targeted property tax relief through programs including Stay NJ, ANCHOR, and Senior Freeze, while modifying the income threshold and maximum benefit for the Stay NJ program.
  • Maintains the ANCHOR bonus for senior renters, which was set to expire after fiscal 2026.
  • Increases funding for Local Efficiency Achievement Program (LEAP) grants and for consolidating public safety infrastructure to help local governments and school districts pursue consolidation and shared services. 

Education

  • Provides record-high formula aid for K-12 education, while calling for long-term focus on modernizing the current formula to ensure sustainability and align funding with today’s needs.
  • Increases preschool education aid by 9.3 percent compared to fiscal 2026.
  • Expands evidence-based, high-impact tutoring programs by doubling the amount from fiscal 2026.

Protecting Children

  • Includes funding for the new Office of Youth Online Mental Health Safety and Awareness.
  • Funds a new Social Media Research Center to study the impact of digital technology on young people’s mental health.
  • Invests in kids’ health and food security, including increased funds for the Children’s System of Care and level-funding for school-based services.
  • Provides first year of funding for a new school-based mental health program for students in crisis.
  • Provides 21,000 schoolchildren with free meals and 850,000 children with health coverage through NJ FamilyCare.
  • Expands “Family Connects” home visiting program for new parents to become available statewide for the first time.
  • Allocates additional funding to reopen the Child Care Assistance Program application process thousands of more families.

Health and Human Services

  • Provides funding to expand rapid re-housing programs to combat homelessness.
  • Allocates funding for the Bringing Veterans Home initiative to end veterans’ homelessness.
  • Includes additional funds to help counties cover increased Supplemental Nutrition Assistance Program (SNAP) administrative costs as a result of the One Big Beautiful Bill Act (OBBBA).
  • Makes targeted investments to modernize services and strengthen enrollment systems to ensure eligible residents continue to have access to Medicaid under new federal requirements as a result of OBBBA.
  • Provides funds for family planning services and reproductive healthcare.

Making Government Work 

  • Enables the State’s first-ever Chief Operating Officer to modernize systems, drive efficiency, and boost transparency.
  • Provides additional funding for the New Jersey Innovation Authority to support operating initiatives such as the Permitting Dashboard and New Jersey Report Card.
  • Increases Environmental Protections staffing to expedite permitting for energy generation and housing construction.
  • Establishes new oversight initiatives including new staff at the Division of Pensions and Benefits to improve contract compliance and at the Department of Education to enhance monitoring of school district budgeting.
  • Reduces business registration fees and improves procurement assistance for minority and women-owned businesses.
  • Supports technology upgrades, including for the Division of Consumer Affairs licensing system and complaint database.
  • Provides a 26 percent increase in State operating subsidy for NJ TRANSIT.
  • Increases investments in water infrastructure by ten percent. 
  • Includes full payment to the State’s pension system.