New Jersey Governor Mikie Sherrill delivered her inaugural budget address today, proposing a $60.7 billion budget for fiscal year 2027, promising record property tax relief and school funding while pledging to rein in state spending without imposing new taxes on residents.

The budget, which Sherrill dubbed “Rising to the Mission: A More Affordable & Accountable New Jersey,” represents a 1.6% increase over the current fiscal year’s adjusted appropriation — a sharp decrease from an average annual growth rate of nearly 7% over the previous eight budgets.

The plan includes a proposed surplus of $5.4 billion and calls for redirecting more than 74% of total spending back into communities through grants, state aid and social services.

“This is an affordability budget, rooted in lowering costs for hardworking families and making state government more accountable to the people we serve,” Sherrill said during her speech before a joint session of the Legislature at the Statehouse.

The budget proposes a record $4.2 billion in property tax relief, including $2.3 billion for the ANCHOR program, $350 million for Senior Freeze and nearly $700 million for Stay NJ. Under the proposal, Stay NJ eligibility would be capped at $250,000 in household income — matching the ANCHOR threshold — and the maximum benefit would be limited to $4,000.

To help first-time buyers, Sherrill proposed adding $5 million to the state’s Down Payment Assistance Program. The administration said the allocation would benefit nearly 3,000 first-time and first-generation homebuyers.

The budget also calls for a record $12.4 billion for K-12 public schools, a $370 million increase over last year and the largest in state history. The proposal also includes a record $1.4 billion for preschool education.

The budget sets aside $15 million for high-impact tutoring — double the current year’s funding — aimed at helping nearly 100 additional school districts and 13,500 more students address pandemic-era learning gaps.

To raise new revenue without broad tax increases, the administration proposed paring back corporate tax loopholes and improving tax compliance.

The budget now goes to the state Legislature for review. New Jersey’s fiscal year begins July 1.