The New Jersey FY27 Budget Address kicks off Budget Season, and this year it isn’t going to be easy.

Governor Mikie Sherril gave her first New Jersey State Budget Address for Fiscal Year 2027 (FY27), focusing on affordability, responsibility and accountability. She talked about the $3 billion structural deficit, but we think it’s important to note, New Jersey is currently working with a surplus due to funding such as COVID relief, but that money is going away. The Governor’s address indicated her desire for a proactive approach, start making tough decisions now and help avoid potential challenges in the near future for things like cuts to school funding and state tax hikes.

The annual Budget Address and The Budget in Brief are the legally mandated starting point for the state’s annual spending plan, and a summary of recommendations the Governor creates with assistance from the Office of Management and Budget, the financial planners of the state. 

Normally planning for the next year’s budget starts the previous fall when the executive branch departments prepare budgets to propose to the Governor. During an election year with a new Governor coming in, this process gets disrupted a bit. The new team had much less time to impose their priorities on a budget process that was begun by Governor Murphy and his people.

Budget hearings, when the Senate and Assembly Budget and Appropriations Committees hold hearings to review the proposal and listen to testimony from state officials and the public, happen in April and will likely conclude by mid May.