Governor Mikie Sherrill today signed the FY 2027 Appropriations Act into law, enacting a $60.7 billion budget focused on making New Jersey more affordable, protecting children and families, and increasing government accountability. The budget includes record property tax relief, historic investments in education, and a boost to the Child Tax Credit, all without raising taxes on individual New Jerseyans.
"When I took office, I promised New Jersey families that affordability would be the north star of every decision we made. With the passage of our first budget, we are delivering on that promise," said Governor Mikie Sherrill. She added that it is "the most fiscally responsible budget in years," cutting the structural deficit in half and putting the state in a stronger position for the future.
The Appropriations Act maintains a $7.3 billion pension payment, marking the sixth consecutive full payment and making Governor Sherrill the first governor in decades to fully fund the pension system in their first year. The budget also boasts a surplus of $6.084 billion and reduces the structural deficit to $1.35 billion, down from over $3 billion projected at the start of her administration. Record property tax relief totals over $4.1 billion, including a revamped Stay NJ program offering higher benefits for middle and lower-income seniors, with some qualifying for up to $6,500. Additionally, New Jersey's Child Tax Credit will increase by 25 percent for three tax years, benefiting 217,000 tax filers.
Significant investments are directed towards education and children's well-being, with a record $12.4 billion for K-12 schools and $1.4 billion for Preschool Education Aid. The budget allocates funds for a new Office of Youth Online Mental Health Safety and Awareness and a Social Media Research Center, alongside $15 million for high-impact tutoring to address academic gaps. It also provides $6.9 billion for NJ FamilyCare, New Jersey's Medicaid program, and ensures free meals for 21,000 schoolchildren through the Working-Class Families Anti-Hunger Act.
To enhance accountability, the budget supports technology upgrades across state government, including for the Division of Consumer Affairs, and funds new oversight initiatives for contract compliance and school district monitoring. Transportation infrastructure also sees substantial backing, with nearly $1.1 billion in state operating support for NJ TRANSIT and approximately $2.1 billion for the State Transportation Capital Program, aiming to improve commutes and statewide connectivity.