The Garden State Initiative released a new report on Mar. 9 showing that discretionary spending, known as legislative earmarks, has increased sharply in New Jersey’s state budget over recent years. The report, authored by New York University finance professor Thad Calabrese and published ahead of Governor Mikie Sherrill’s upcoming budget address, states that these earmarks have grown to $2.1 billion between fiscal years 2024 and 2026.
According to the Garden State Initiative (GSI), this issue is significant because the funds allocated through these earmarks could otherwise be used for broad-based tax relief or debt reduction. The report notes that in Fiscal Year 2026 alone, the legislature added $860 million in funding not requested by the governor and often approved without public scrutiny.
The findings indicate a 450% rise in the number of private and nonprofit organizations receiving state funds over two years—from 101 recipients in FY24 to 462 in FY26. On average, $240 per household annually is being spent on these extra budget items. The report also highlights concerns about transparency and accountability: “There is little to no transparency of how funding is generated, reviewed, or approved without standardized data-driven criteria to determine the public need addresses,” according to GSI.
Audrey Lane, President of GSI, said: “There is a lot of talk about affordability these days, which is more pronounced with a $3 billion budget deficit this year. One place for the Governor to look is to hold the line on last-minute discretionary spending. Since 2024, the legislature has add $2.1 billion in politically connected spending without any standard review process, that could otherwise pay down our debt, provide significant tax relief for struggling families and businesses. What this report suggests is that the Governor and the legislature can reform this earmark process to increase transparency of this spending well in advance of the budget deadlines to ensure it meets a public need in an objective way. I look forward to hearing Governor Sherrill’s budget address tomorrow—her acknowledgment of the structural deficit is welcomed and is the first step toward meaningful budget reform.”
The organization also updated its NJBUDGET.COM platform with new Fiscal Year 2026 data reflecting over $118 million in supplemental appropriations passed by Assembly Bill #6319 earlier this year; most projects funded were not included previously but will now receive state aid or grants-in-aid.
GSI calls for three main reforms: eliminating non-competitive legislative add-ons; redirecting earmark funds toward tax relief or debt reduction; and requiring full transparency with public bidding for grants given to third-party organizations.
The Garden State Initiative promotes transparency and accountability while advocating policies supporting business growth and job creation according to its official website. It focuses on researching economic competitiveness as well as fiscal policy issues facing New Jersey according to its official website. GSI produces reports analyzing topics such as state budgets and taxes according to its official website, functioning as a nonprofit think tank centered on public policy issues affecting New Jersey according to its official website.
