Governor Signs Budget After Partisan Tension, Party-Line Votes

New Jersey's Legislature passed a record $60.7 billion state budget on June 30, 2026, which Governor Mikie Sherrill signed into law. While this is statewide policy, several provisions directly affect Union County residents, families, and municipalities.

Property Tax Relief

The budget includes $4.3 billion in property tax relief. Two key programs affect Union County residents:

The StayNJ property tax relief program targets seniors earning under $200,000 per year. This program is designed to help older residents remain in their homes as property taxes rise.

Additionally, the budget expands the Child Tax Credit for low-income families, providing tax relief to families with children.

School Funding

The budget allocates $12.4 billion in school aid to districts statewide. This funding supports Union County school districts, including Newark, Elizabeth, Plainfield, and other municipalities. The budget also includes $1.4 billion in pre-K aid.

Other Key Provisions

The budget includes $257 million in child income tax credits and a $7.3 billion full pension payment, supporting teacher and public employee pension systems.

A new provision taxes large employers whose workers receive Medicaid benefits—a measure aimed at recouping costs taxpayers bear. This affects some hospitals, large retail chains, and nonprofits.

How This Affects You

For Union County families, the expanded child tax credits and property tax relief may reduce tax burden. For seniors, StayNJ provides direct property tax assistance. For residents with children in school, increased state school aid supports district operations and programming.

However, Republicans argued the budget increase spending without adequately cutting costs, and expressed concerns about the legislative process—noting lawmakers had limited time to review the final proposal before passage.

Governor Sherrill countered that the budget represents "hard choices" focused on affordability, and acknowledged that the legislative process could be more transparent in future years.

Union County residents interested in how specific budget provisions affect their municipality or school district should contact their local officials or school district administration.

FAQ

Q: What is the StayNJ property tax relief program?
A: StayNJ provides property tax relief to seniors earning under $200,000 per year. The program is designed to help older residents afford to remain in their homes as property taxes rise.

Q: How does the budget increase school funding?
A: The budget allocates $12.4 billion in school aid to school districts statewide, including Union County districts. It also includes $1.4 billion in pre-K aid.

Q: What is the child tax credit expansion?
A: The budget expands the Child Tax Credit for low-income families, providing tax relief to families with children.

Q: Who does the new Medicaid-related employer tax affect?
A: The provision taxes large employers whose workers receive Medicaid benefits. This includes large retail chains like Walmart and Amazon, as well as some hospitals and nonprofits like the Boys and Girls Club.

Q: How long is this budget in effect?
A: This is the state budget for fiscal year 2026-2027, running from July 1, 2026 through June 30, 2027.

Q: How can I find out how this budget affects my school district?
A: Contact your local school district administration or municipal government offices to learn how state school aid allocation affects your community's schools.

Q: Where can I find more information about state budget provisions?
A: The New Jersey Legislature website and the Governor's office provide detailed budget information. Union County residents can also contact their state legislators' offices for district-specific information.