Lawmakers unveil $60.74B budget with bigger surplus, hundreds of targeted spending additions

Key Points:

• New Jersey legislative leaders unveiled a revised $60.743 billion FY 2027 state budget, slightly increasing spending by $15 million over Gov. Mikie Sherrill’s proposal while boosting projected revenues by $288.2 million and increasing the year-end surplus to $6.49 billion.
• Stronger-than-expected income tax collections contributed to additional revenue, offsetting declines in sales tax and investment earnings; the budget also raised the state’s opening balance by nearly $390 million, resulting in one of the healthiest reserve positions in state history.
• Major spending increases were directed to the Departments of Community Affairs, State, Children and Families, Health, and Transportation, while reductions occurred in Human Services, Education, Treasury, and Interdepartmental Accounts.
• Significant funding boosts targeted mental health, housing, re-entry programs, food security, and anti-hunger initiatives, including expanded student support services, homelessness response, rental assistance, and nutrition programs.
• The budget includes hundreds of local grants and municipal aid across New Jersey, supporting operating aid, infrastructure, public safety, and social services, alongside provisions allowing agencies to carry forward unspent funds and restoring funding for key programs like affordable housing and code blue homelessness efforts.