State reserves will ease new governor’s budget decisions

Still near record highs, the state's surplus will boost flexibility for incoming Gov. Mikie Sherrill, but New Jersey's deficit may force hard choices.

By: Nikita Biryukov

Outlets: New Jersey Monitor

Published: January 20, 2026

Words: 924

Last Updated: 1 month ago

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Gov.-elect Mikie Sherrill will face growing budget deficits, shrinking federal support, and a resistance to new tax hikes as she moves to enact her first spending bill in the coming months.

But Sherrill, a Democrat who becomes governor on Tuesday at noon, will enter office with far more resources than her predecessors.

New Jersey’s reserves will remain at some of their highest levels in decades after Gov. Phil Murphy (D) leaves office. …

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