NJ Gov. Sherrill - FY27 Press Conference

New Jersey State House - photo by Nancy Youngkin

Prepare2Vote is going to be following the NJ Budget process so you can have a better understanding of how it works.

Feb 26, 2026 - Governor Mikie Sherrill held a press conference, giving residents an idea of what to expect in her first official Budget address being held on March 10.

She said that New Jersey faces a serious deficit estimated at $3 billion, driven by federal funding cuts that could cost New Jersey $100 million, the end of COVID relief, and historical fiscal mismanagement including underfunding the pensions. If unaddressed, the state's $7.2 billion surplus will be depleted by FY2027, risking credit downgrades, tax hikes, and cuts to vital services. Governor Sherrill committed to no new taxes, focusing instead on identifying savings, improving government efficiency, and increasing transparency.

The State Constitution requires a balanced budget before July 1.

On March 10, 2026 the Governor will address the State Legislature with a proposed budget that will start that process, kicking off what is affectionately called, Budget Season.

For the remainder of March and possibly into the beginning of April, hearings will be held to review the needs of state funded entities such as hospitals and universities, hosted by a team of legislators and policy associates who then get down to business creating their own proposals based on what is requested, what is available, and the Governor’s draft.

It’s important to note the State Legislature cannot independently decide on the budget. New Jersey has an agency called the Office of Legislative Services (OLS) a nonpartisan office that provides professional support to the New Jersey Legislature. It delivers impartial research, fiscal analysis, and legal assistance to lawmakers, ensuring that legislative decision-making is informed and independent of executive influence. OLS plays a central role in developing the state budget and evaluating the fiscal impact of proposed laws.

NOTE: The Governor is launching a Budget Tracking app in April, where residents can track the budget process. And we will continue to give you the nuts and bolts of what is happening. Stay tuned in, and we’ll be back with a new post, post Budget Address on March 10.