Ahead of the final signing of Governor Mikie Sherrill’s proposed $60.7 billion New Jersey budget for fiscal year 2027 by July 1, a New Jersey Society of Certified Public Accountants’ (NJCPA) survey of nearly 300 finance and accounting members taken at the end of May to early June showed that respondents supported the Sherrill administration’s new permitting dashboard, improvements to NJ Transit and grants/low interest loan programs. But when asked to identify the top challenges for businesses, political strife at the state and national levels ranked highest, with 55% of respondents selecting it among their top three challenges. State and federal policies that are unfriendly to businesses was selected by 39% of respondents, and employee and benefit costs by 33% — marking the first time employee and benefit costs made the top-three concerns since the survey began in 2016.

More than half of respondents (57%) cited reducing burdensome regulations among their top-three governmental steps to help businesses over the next 12 months. Lowering the gas tax was next at 40%, followed by cutting the corporate tax rate, with a response of 37%.

Respondents also backed property tax support programs, steps by the Sherrill administration to provide a retirement savings program for employers that do not have a retirement plan in place and artificial intelligence (AI) data center regulation proposals.

For the overall New Jersey economy, 64% of respondents believed the economic conditions in the state would worsen over the second half of 2026 versus 28% who said it would stay about the same. This compares with a closer split last year between faring worse at 56% versus remaining the same at 36%. For the entire U.S, 45% of respondents believed economic conditions would worsen during this time period, while 23% expected it to stay the same.

“Data from our member surveys is an important indicator of the business landscape in New Jersey. By representing thousands of business owners, leaders and individuals across the state, our members have an important read on everyday business decisions,” noted Aiysha (AJ) Johnson, MA, IOM, CEO and executive director at the NJCPA. “We welcome the opportunity to be a resource for Governor Sherrill’s administration and the New Jersey Legislature.”

The Sherrill administration’s proposed budget includes $7.3 billion for the state’s pension system; $12.4 billion for K-12 schools; property tax relief totaling $4.2 billion, for items such as ANCHOR, Senior Freeze and Stay NJ; approximately $2.1 billion for the State Transportation Capital Program; and other budget allocations.