Gov. Murphy Proposes $58 Billion Budget February 26, 2025 Governor’s Final Budget Includes $1.2 Billion DeficitOn Feb. 25, Governor Phil Murphy delivered his budget proposal for New Jersey’s 2026 fiscal year, which begins July 1. Budget spending is $1.4 billion (2.7%) more than the signed current fiscal year budget of $56.6 billion. The proposed $58.05 billion budget includes the following: $7.2 billion full pension payment$6.3 billion surplusNearly $4.3 billion in direct property tax relief$1.3 billion for pre-K and $12.1 billion for K-12 schools$1.5 billion for NJ Transit, including $815 million from the corporate transit fee$1.2 billion in new fees and taxes, including tax increases for reality transfers, sports betting, alcohol, adult-use marijuana and cigarettes$100 million for expanding apprenticeship programs and workforce developmentTax credit for manufacturing next-generation products in New JerseyA cap on new discretionary spending There is a $1.2 billion structural budget deficit. The budget has to be approved by the Assembly and the Senate and signed into law by June 30.Read MoreBudget one-pagerBudget in BriefGov. Murphy’s budget address: video | text of speechBudget analysis by NJBIA's Chris EmigholzProvide Your FeedbackTake our quick poll about the budget proposalLearn MoreRegister for IssuesWatch Live: New Jersey Budget Analysis: March 18, 12-1:15 p.m. or March 24, 2-3:15 p.m. Lawmakers, Business Leaders Weigh InNJ business groups dig into deficit, warehouse tax from $58B budget GOP Sounds Alarm on Murphy’s Budget ProposalNJBIA Statement on Governor's FY26 State Budget ProposalNJ Chamber Statement on Proposed 2026 State of NJ Budget