New Jersey Governor Mikie Sherrill delivers a speech during her inauguration ceremony at the New Jersey Performing Arts Center in Newark, New Jersey, U.S., January 20, 2026. REUTERS/Brendan McDermid
New Jersey Governor Mikie Sherrill Inauguration ceremony in Newark, New Jersey
(Trenton, N.J) — New Jersey Governor Mikie Sherril delivered her first budget address on Tuesday in Trenton, proposing a record 60.7-billion-dollar plan that she labeled “the most fiscally responsible budget that our state has seen in years.” Sherrill told lawmakers that there will be no tax hikes, state pensions will be fully funded, and the newly minted Democratic leader said tax breaks will be kept in place for small businesses statewide, but not for major companies. The Governor admonished her fellow lawmakers for spending money for too long that they don’t have, and she said “I refuse to put off ’til tomorrow what we need to fix today.”
Republican leaders in the New Jersey Legislature were quick to pounce on the Governor’s plan. While Sherrill framed her proposal as a necessary step to repair a “broken budget”, GOP lawmakers dismissed it as not being nearly enough to right the ship in the garden state. The Assembly Republican Budget Officer, Brian Rumpf summed it up as “New Governor, Same Old Song”
Republicans lawmakers pointed to Sherrill’s business tax increase. While she pledged no new taxes on individuals, Republicans argue she is effectively raising taxes on employers by phasing out tax deductions for businesses. There is also a new Medicaid assessment fee for businesses with more than 50 employees who have workers on Medicaid. They say that will increase employer health care contributions.
GOP leaders also strongly condemned the Governor’s plan to reduce the StayNJ property tax relief program. The statewide program was designed to provide property tax relief for senior homeowners by reducing their tax bills by up to 50% Sherrill’s proposal would cut the program by one-third, lowering the maximum benefit from $6,500 to $4,000 and tightening income eligibility.
Senate Republican Leader Anthony Bucco says Sherrill’s speech surprised him because she had such a huge “shift in tone” from the fiscal watchdog she promised to be on the campaign trail last year to a governor that will spend just like Phil Murphy did.
