March 16, 2026

Gov. Sherrill Proposes Record $60.7B Spending in First Budget Address – NJ State Policy Updates

Public Administration

Governor Sherrill Proposes Record $60.7 Billion Spending in First Budget Address – On March 10th, Governor Sherrill delivered her first budget address to the Legislature, proposing a $60.7 billion spending plan for fiscal year 2027 that aims to cut the structural deficit from $3 billion to $1.7 billion. Concurrently, the budget introduces $3.3 billion in spending increases. Programs and measures where spending is allocated include new expenses for NJ FamilyCare of $770 million, a full pension payment of $7.3 billion, and a K-12 school formula aid of $12.4 billion. The planned budget raises approximately $750 million in new revenue through three increases to business tax obligations: temporarily capping corporate loss deductions, limiting the alternative business calculation deduction for small firms, and imposing a per-employee fee between $325 and $725 on employers with at least 50 workers enrolled in NJ FamilyCare. The budget now goes to lawmakers who will host budget hearings before sending their own budget plan back to the Governor for her signature or veto, before the constitutional July 1 deadline.

 

Education

Assembly Committee Advances Bill to Strengthen College Transfer Process – On March 9th, the Assembly Higher Education Committee unanimously approved Bill A1315, which would modify New Jersey’s collective statewide transfer and reverse transfer agreements while establishing a New Jersey Transfer Ombudsperson within the Office of the Secretary of Higher Education. The legislation, sponsored by Assemblymember Cody Miller (D-4) and Linda S. Carter (D-22), would require the agreement to be developed by the New Jersey Presidents’ Council, in consultation with a newly created New Jersey Transfer Ombudsperson, and approved by the Secretary of Higher Education. Under the bill, the main purpose of the ombudsperson is to serve as a resource for students and participating institutions of higher education regarding compliance with the credit transfer agreement in order to foster the transfer process and the academic success of transfer students. The bill has been referred to the Assembly Appropriations Committee, while its companion, Bill S1461, awaits action in the Senate Budget and Appropriations Committee.

 

Economics

Assembly Committee Approves Bill to Research Grid Alternatives – On March 14th, the Assembly Telecommunications and Utilities Committee voted to advance Bill A3967, legislation requiring the New Jersey Board of Public Utilities (BPU) to collaborate with neighboring states to research and recommend alternatives to the current capacity market following a July 2024 auction that saw prices increase nearly tenfold. The bill makes reference to PJM’s capacity auction for the 2025/2026 delivery year, which resulted in $14.7 billion in costs to consumers compared to $2.2 billion the previous year. Under the legislation, BPU must research and recommend collective action to secure long-term electricity contracts, explore an alternative multi-state compact for buying power, or withdraw from the current electric transmission grid to create or join another existing power grid.

Assembly Commerce and Economic Development Committee Advances Bill to Establish Regional Economic Development Partnerships – On March 9th, Assembly lawmakers reported Bill A3571 favorably, a proposal that would authorize the establishment of regional economic development partnerships. Under the legislation, counties, municipalities, and public or private economic development organizations could jointly develop regional strategies to assist existing business, attract new ones, retain existing employers, and redevelop existing areas. The bill also covers regional development partnerships among business organizations, educational institutions, nonprofits, among others.

 

Health

Assembly Committee Advances Bill Targeting Crisis Pregnancy Center Advertising Practices – On March 9th, the Assembly Community Development and Women’s Affairs Committee advanced Bill A1679, sponsored by Assemblywomen Verlina Reynolds-Jackson and Ellen Park, with amendments. This legislation was originally written specifically for crisis pregnancy centers and would make it a violation of New Jersey’s Consumer Fraud Act for the centers to engage in deceptive advertising practices related to pregnancy services. The bill has since been amended to broaden its language so that all healthcare providers would be subject to the state’s consumer fraud protections. The changes are meant to head off potential constitutional challenges that may result from an upcoming Supreme Court decision regarding a consumer fraud investigation into a pregnancy crisis center chain in another state. However, these new amendments to the bill have reportedly alarmed some in the healthcare community as health care providers have historically been exempt from the Consumer Fraud Act in New Jersey.

 

Housing

Bill to Limit Utility Meter-Reading Fees for Apartment Residents – On March 13th, the Assembly Telecommunications and Utilities Committee marked Bill A2127 for reporting, which would prohibit electric public utilities from charging residents of multi-unit dwellings meter-reading fees that exceed the cost of the residential customer’s electricity or gas usage for that billing cycle. Under the bill, which is a carryover from previous legislative sessions (A5583 and S4667), a “meter-reading fee” is a fee charged to an electric public utility or gas public utility customer who has opted out of smart meter installation, and which fee is intended to cover the cost of manual meter readings.