Sherrill Warns of $3B New Jersey Budget Deficit, Vows no Tax Hikes

February 27, 2026 | nj1015.com

Gov. Mikie Sherrill is due to present her first budget to the legislature on March 10. 

On Thursday (2/26), she vowed to cut spending, but offered no details other than to say there will be "tough choices" ahead. 

Sherrill emphasized that spending reductions—not new revenue—will be the primary tools to deal with a potential $3 billion deficit.

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NJ SEED: Cuts are always difficult to make but must be done in the coming budget cycle. Perhaps Stay NJ is one of the most vulnerable. If the Governor is serious about no new taxes she may find it necessary to increase existing taxes and fees. The Sherrill Administration and the Legislature face some very difficult decisions between March 10 and June 30.