Seven things we learned from Sherrill’s first budget

Gov. Mikie Sherrill delivered her inaugural budget address Tuesday, the first big step in her effort to fulfill her campaign mission of making New Jersey more affordable while improving government accountability and transparency, she said.

The governor said her $60.7 billion budget proposal (which would be the biggest in state history if passed) is the most fiscally responsible in years (it includes more than $2 billion in cuts) and shows she is eager to attack problems today — not tomorrow.

“This is an affordability budget, rooted in lowering costs for hardworking families and making state government more accountable to the people we serve,” she said. “New Jerseyans gave me a mandate to challenge the status quo and that’s exactly what this budget does — there’s no more kicking the can down the road.”

Here are seven things worth noting.

She’s willing to call out the budget process of the past

Sherrill said previous administrations have allowed business-as usual in Trenton and failed to find any real and solid fiscal footing.

“There have been too many one-offs. Too many temporary fixes. Too little willingness to challenge what’s always been done,” she said.

As a result, the state budget has doubled in size since 2010.

“Our work starts by ending previous administrations’ bad habit of tacking last-minute giveaways onto each budget,” she said. “These days, we simply can’t afford that.”

Sherrill noted that in the final working days of the Murphy Administration, New Jerseyans were stuck with nearly 3 billion dollars in extra spending.

“That can’t happen,” she said. “We can’t afford that process anymore. It’s not accountable; it’s not efficient; it’s not what the people of New Jersey deserve.”

The skinny: Sherrill promised to end this process. She’s not the first governor to suggest this. But she would be first governor to follow through — if she’s able to.

She’s willing to call out programs that don’t work

Sherrill said companies have been using a deduction that was introduced 15 years ago, to help small businesses weather the Great Recession. “It’s called the Alternative Business Calculation, and the whole point was to level the playing field for entrepreneurs,” she said. “But bigger companies started using it, too.”

Sherrill said her budget limits that deduction to the actual small businesses it was meant for, capping eligibility at business income of a million dollars a year. This fix will save another 120 million dollars a year, without taxing families a dollar more, she said.

The skinny: Business groups may disagree with the premise — and her math.

She’s willing to take on Coughlin

Sherrill said she is willing to keep STAY NJ, the legislation sponsored by Assembly Speaker Craig Coughlin, but at a reduced rate. Sherrill proposed capping the qualifying income threshold at $250,000 (down from $500,000) and limiting the maximum benefit amount at $4,000.

“I’m changing that, to safeguard Stay NJ for middle class seniors,” she said. “If you make 250,000 or less, your tax relief is in this budget. That’s going to save taxpayers hundreds of millions of dollars a year.

“That’s a fairer, more efficient use of taxpayer money.”

The skinny: The legislative response on this issue will be telling.

She’s willing to fight for affordable housing — in a new way

She didn’t mention the Mt. Laurel doctrine but did say her budget protects the Affordable Housing Trust Fund, working to ensure the $70 million that is allocated is being used as intended: to build housing that’s affordable and increase downpayment assistance for people looking to buy a first home.

“It helps us to brace for the impact of federal cuts to emergency housing programs, expanding our work to end homelessness,” she said.

Include veteran homelessness in New Jersey. “As a veteran, I know what those who served have sacrificed for this nation,” she said. “The least we owe them is a safe place to live.”

The skinny: Everyone wants more affordable housing in the state — until they go to sell their own. That being said, this may be the No. 1 issue impacting the state’s ability to attract its next generation of workers.

She’s willing to fight for the kids

Sherrill’s budget expands the “Family Connects” home visitation program to every county. It invests in the state childcare program. And it continues to fund the school formula with a record investment in K-12 education. It includes money to increase tutoring programs. It works to bring more behavioral health services into schools.

Among other ways she’ll accomplish is through a promise to implement more shared services among schools and districts.

The skinny: Everyone is in favor of helping kids and reducing costs. Figuring out how to do it always has been the challenge.

She’s willing to publicly support workers

There were more references to unions and state workers than you could count.

The skinny: Everyone is pro-worker. The challenge is being so without being anti-employer.

She’s willing to publicly call out Trump

Sherrill wasn’t shy about calling out the current administration for its cuts — or talking tough about taking President Trump to court.

The skinny: Hmmmm.