New Jersey Policy Perspective has released a statement on the state's finalized FY26 budget, which increases the structural deficit to almost 1.5 billion while reducing cash reserves well below recommended levels.

Our big concerns:

• This budget eliminates or reduces Governor Murphy's proposed revenue increases
• Fails to prepare for looming federal cuts to Medicaid and food assistance
• Although the realty transfer fee expansion and other revenue raisers help, the state is still running a structural deficit

Key quote:
"Lawmakers continued to ignore federal revenue cuts coming for Medicaid and food assistance and failed to protect the much-needed cash reserves to help the state protect its residents. While other states build up their savings to help smooth the potentially devastating cuts, the state's political leadership chose instead to conduct business as usual in Trenton."

Full statement: https://www.njpp.org/media/statement/despite-modest-revenue-increases-nj-state-budget-leaves-residents-exposed-to-federal-cuts/