New Jersey Gov. Mikie Sherrill’s $60.7 billion spending plan emphasizes property tax relief, education funding, and government accountability while slowing the pace of spending growth.
Her first state budget proposal, unveiled on Tuesday, March 10, includes a projected $5.4 billion surplus and directs more than 74% of spending back into communities through school aid, property tax relief, social services, and support for municipalities and counties, according to a statement from the governor’s office.
The Fiscal Year 2027 proposal, titled “Rising to the Mission: A More Affordable & Accountable New Jersey,” outlines the administration’s priorities for lowering costs for residents, maintaining key state programs, and addressing long-term fiscal obligations.
“This is an affordability budget, rooted in lowering costs for hardworking families and making state government more accountable to the people we serve,” Sherrill said in her address.
“New Jerseyans gave me a mandate to challenge the status quo, and that’s exactly what this budget does — there’s no more kicking the can down the road,” she added.
Senior Citizens Facing Cuts
The financial blueprint is $980 million more than the state’s current budget and includes $2 billion in cuts, including $500 million slashed from New Jersey’s property tax relief program for seniors
State Treasurer Aaron Binder said the proposal aims to balance fiscal discipline with continued investment in services.
“This proposed budget is an important step towards implementing Governor Sherrill’s vision of a more affordable New Jersey, while maintaining a strong commitment to fiscal discipline,” Binder said. “This is a budget that finds solutions to cut costs without compromising services for everyday New Jerseyans.”
Slower spending growth
The administration says the plan reduces the state’s structural deficit and slows spending increases compared with recent years. While the previous eight budgets grew by nearly 7% annually on average, the proposed FY2027 spending plan would increase by about 1.6% over the adjusted FY2026 appropriation.
The proposal also includes roughly $2 billion in cost-saving measures and seeks additional revenue by closing certain corporate tax loopholes and improving tax compliance.
Property tax relief programs expand
A major focus of the plan is property tax relief, with a record $4.2 billion proposed for programs aimed at homeowners and renters.
Funding would include:
• $2.3 billion for the ANCHOR property tax relief program
• $350 million for the Senior Freeze program
• Nearly $700 million for the Stay NJ program
The proposal would also adjust eligibility for Stay NJ by capping qualifying income at $250,000 and limiting benefits to $4,000.
Energy costs and power supply
The administration also outlined steps to address energy costs and electricity supply. Through off-budget funding, the state plans to shield ratepayers from potential utility rate increases while continuing to support energy assistance programs.
The Board of Public Utilities would also be directed to identify funding for another round of Residential Energy Assistance Payments for lower-income residents.
The administration also signaled plans to expand energy supply through initiatives such as energy storage projects, expanded solar programs, and the development of “virtual power plants.” Officials said the state is also exploring options to increase baseload power generation, including nuclear energy.
Record education funding
The proposed budget includes $12.4 billion for K-12 education, the largest investment in state history and a $370 million increase from the previous year.
It also allocates $1.4 billion for preschool education programs. Additional education initiatives include:
• $15 million for high-impact tutoring programs
• funding to provide free meals to approximately 21,000 students through the Working-Class Families Anti-Hunger Act
• new research initiatives focused on youth and social media use
The proposal also includes $125,000 for a new Office of Youth Online Mental Health Safety and Awareness and $500,000 for a Social Media Research Center at a New Jersey higher education institution.
Health care and family programs
The budget allocates $7.2 billion in state funding for Medicaid and NJ FamilyCare, which provide health coverage to more than 1.8 million New Jersey residents, including nearly half of the state’s children.
Additional funding is proposed for child care assistance, family tax credits, and the statewide expansion of Family Connects NJ, a nurse home visiting program for families with newborns.
Transportation investment
Transportation infrastructure remains another major spending area in the plan. The budget includes more than $1 billion in operating support for NJ Transit — a $215 million increase over the previous fiscal year — along with approximately $2.1 billion for the state’s Transportation Capital Program.
That funding includes $1.3 billion for highway and bridge projects and $782 million for NJ Transit capital investments.
Government accountability initiatives
Sherrill’s proposal also includes funding for several government modernization initiatives aimed at improving transparency and efficiency.
These include:
• $13.3 million for the New Jersey Innovation Authority
• a statewide permitting dashboard and public spending “report card”
• technology upgrades for the Division of Consumer Affairs
• additional oversight staff for state pensions and school district monitoring
The governor also proposed reducing certain business registration fees and expanding procurement assistance for minority- and women-owned businesses.
The budget proposal will now move to the state Legislature, where lawmakers will review and negotiate the final spending plan before the July 1 start of the next fiscal year.
By the Numbers: New Jersey’s proposed FY2027 budget
• $60.7 billion — Total proposed state budget
• $5.4 billion — Projected surplus
• 1.6% — Spending growth compared with the FY2026 adjusted appropriation
• $4.2 billion — Total property tax relief funding
• $2.3 billion — Funding for the ANCHOR property tax relief program
• $700 million — Funding for Stay NJ property tax relief
• $350 million — Funding for the Senior Freeze program
• $7.3 billion — State pension payment, marking the sixth consecutive full contribution
• $12.4 billion — Record K-12 school funding
• $1.4 billion — Preschool education funding
• $7.2 billion — State funding for Medicaid and NJ FamilyCare
• $1+ billion — State operating support for NJ Transit
• $2.1 billion — Transportation Capital Program for highways, bridges and transit projects
• $582 million — Child care assistance funding
Why it matters for Meadowlands businesses and residents
For North Jersey residents and businesses — including those in the Meadowlands region — the state budget shapes everything from property tax relief and commuter transportation to school funding and economic development programs. Several elements of the proposal could have a direct local impact:
- Property tax relief programs such as ANCHOR and Stay NJ are widely used in Bergen and Hudson counties, where property taxes remain among the highest in the nation.
- Transit funding is particularly relevant in the Meadowlands corridor, where thousands of workers commute daily through the NJ Transit rail network, bus routes and nearby major highways.
- Infrastructure investments in highways, bridges and transit also affect access to major regional destinations such as MetLife Stadium, the Meadowlands Sports Complex and American Dream.
- Energy policy initiatives and efforts to expand power generation could also influence electricity costs for North Jersey businesses and households.
- At the same time, record education funding and expanded preschool programs could affect school districts throughout Bergen and Hudson counties.
- The Legislature will now review the governor’s proposal in the coming months before a final budget must be approved by July 1, the start of the state’s next fiscal year.
