Sherrill promised affordability; budget delivers some
By: Alex Nusbaum
Opinion editor
NorthJersey.com
..... Politicians talk about "affordability" these days the way the Internet hawks Online gambling - nonstop and with the zeal of a salesman who knows his job is on the line.
..... That was certainly the case among New Jersey Democrats after they passed the state's $60.7 billion budget late on June 30. [2026] governor Mikie Sherrill cast the spending plan as a victory for struggling families across the Garden State.
..... The good news is that Sherrill's first state budget includes a series of meaningful steps to address the cost of living crisis for working and middle-class New Jersey residents,, including an expanded child tax credit, more support for first-time home-buyers, aide for veterans and continued property tax relief.
New Jersey is still too expensive
..... There was enough to earn compliments from both nonprofit and business leaders, even if the budget doesn't resolve fundamental issues like the need to consolidate local governments or the high corporate tax rates driving away some businesses.
.....
"There are some pieces that are really important and some pieces that are a good start," said Kiran Handa Gaudioso, CEO of the United Way of Northern New Jersey. "Overall, the budget really does center and prioritize affordability across the board."
..... That's a big deal in a high-cost state where almost one in 10 households live below the federal poverty line. another third of New Jersey families make more than that but still not enough to pay consistently for essentials like housing, childcare, transportations and health care, according to a report released y United Way.
..... A typical family of four in the state needed to earn almost $116,000 a year in 2024 just to afford United Way's "survival budget," which also covers tax payments, food and other basics. Nearly four in 10 New Jersey families made less.
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There's no single policy that will solve the affordability crunch, but the budget includes several welcome steps, said Handa Gaudisoso, who served on Sherrill's transition team after the governor's election last year. [2025]
Tax credits earn applause
..... The new budget ads 45 million to the state's Down Payment Assistance Program for first-time home-buyers, raising it to $25 million. It also includes a temporary 25% boost in New Jersey's Child Tax Credit, claimed by 217,000 tax filers a year, according to Sherrill's office. Those receiving he highest tier of credit will see the value jump from $1,000 per household to $1,250 for the next three years.
..... The budget adds $80 million to the Affordable Housing Trust Fund for new construction, $11 million to help homeless veterans transition to permanent housing and restores $20 million for a summer tuition grant program for qualified undergraduates, among other initiatives.
..... The down payment assistance is "an excellent example of the administration and the Legislature creating a program and an opportunity for families who otherwise would not be able to purchase their first home," said Handa Gaudioso.
..... Michele Siekerka, CEO of New Jersey business & Industry Association, also saw value in those efforts.
..... "We have, year over year, supported child care tax credits," she said. "We do believe that home-buying is out of reach for our next-generation workers and we need to find a way that they can afford to purchase their home."
..... But the budget was also a "one-year fix" that fails to address the bigger issues during up costs in New Jersey, she warned. That includes the state's highest-in-the-nation corporate tax rate. At 11%, it's about twice what neighboring Pennsylvania will soon charge, she said.
..... Businesses also balked at a new fee of up to $725 per worker that will be imposed on some employers workers use Medicaid for health insurance. Democrats say taxpayers shouldn't foot the bill for covering private employees, but the BIA says the fee will discourage hiding. Some employers opt for Medicaid even when businesses offer their own coverage, Siekerka said.
What needs to come next
..... With Sherrill's first budget in the books, "We need to immediately pivot to a reform agenda. now we need to get to hard work, rolling up our sleeves and looking at why these policies fail us," Siekerka said. "We need to set thing up for sustainable affordability and a regionally competitive and affordable business climate."
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The Republican minority in the Legislature was also unimpressed. They criticized Sherrill and the Democrats for passing the budget in a last-minute rush, leaving little time for lawmakers to review what they were voting on, including items tacked on by Democratic leadership.
..... they also questioned how Sherrill could tout an "affordability budget" that cut back on tax relief in the StayNJ program for senior homeowners, lowering the income threshold form $500,000 to $200,000. Democrats defensed the move, saying it concentrates the rebates on households hat need it the most. Sherrill's office said 87% of seniors will still get StayNJ checks next year. [2027]
..... Overall, the budget includes a record $4.1 billion in property tax rebates, according to Democrats, including $756 million for StayNJ, $345 million for the Senior Freeze program and$2.2 billion for ANCHOR, which is available to homeowners and renters.
..... "There is no silver bullet," said Handa Gaudioso. "there is not one solution and we do need everyone - government at all levels, large private sector companies, main street businesses, nonprofits like us - we need everybody trying to focus on affordability."
..... Alex Nussbaum is opinion editor for NorthJersey.com and The Record. email nussbauma@northjersey.com