The Backroom of the Budget - Right Now

TRENTON - Insiders here puzzled over the implications of the FY 2027 Budget deal on the legislative houses, within a larger and more hostile political hothouse.

For days, StayNJ occupied most of the backroom drama, ironed out somewhat when Speaker Craig Coughlin and Governor Mikie Sherrill agreed on reducing the income qualification threshold from $500K to $200K, while making it easier for people in that income bracket to qualify for the senior tax relief program.

Members haven't fully absorbed some of Sherrill's other budget priorities, including restorations from early budget drafting of $200 million per house, to be spent according to determinations made by the Assembly and the Senate. In 2025, in Governor Phil Murphy's final year in office, that figure was $300 million per house. The $400 million total includes restorations for hospitals and colleges. Rutgers alone needs $40 million. That's ten percent right there.

People are going to be steamed, a source said, when they learn that money won't be there for critical pet projects in their respective districts. But if budgets finally come down to priorities, the Governor decided to repair - to some degree - cuts on the Medicaid front initiated by President Donald Trump, at the expense of free reining and free ranging Trenton lawmakers.

One source argued that people in that 18 percent of the state dependent on Medicaid impacted by those cuts should learn a lesson: vote Democrat next time. But Sherrill would sooner stretch the safety net in their favor than supply money for new volleyball nets at the local middle school.

How will it all shake out?

Unknown for the moment.

Another source speculated that Sherrill likely will not have become chummier with legislative members as a consequence of this budget cycle. "She clearly has national designs," a source fumed. So, at one point, did Governor Jon Corzine, who was described by one lawmaker as "a fun guy socially," but not the world's greatest governor. Sherrill could possibly emerge as a good governor, who refused to become just another Statehouse frat slob.

Time will tell.

Certainly, for the moment, and with all the details at present unknown, some lawmakers already resent the restoration cuts and what they describe as a Washington, D.C. mentality from Sherrill world that essentially treats legislative priorities as fluff.

"It looks great on TV, playing to a national audience," groused one Trenton insider, "but what happens when we see the actual impact of education programming cuts?"

That said, and within the ongoing chattering hopper of opinion, as of this morning, things weren't completely finalized. A structure exists, but, as always, it will come down to details heading toward the weekend and a June 30th constitutional deadline. In the much-observed case of restoration funds, Sherrill left that part up to the Legislature.

Does anyone foresee the legislature forcing redlining by the Governor?

They don't.

In the majority, Democrats recognize the need to stick together in the face of federal chaos caused by Trump and his minions. They'll complain, but finally the New Jersey party in power doesn't want to get divided and conquered.

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