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       New Jersey is comprised of the state government with an executive branch headed by the governor; a legislature of a 40-member Senate and 80-member General Assembly; and a judiciary with the highest court the Supreme Court of seven justices headed by the chief justice. There are 21 counties and 565 municipalities; unlike some states, New Jersey has no unincorporated areas and municipalities cover its entire geographic area. Most school districts are formed to serve individual municipalities, but there are also regional, consolidated and countywide districts, as well as non-operating school districts which do not operate any school facilities but administer sending-receiving relationships under which students attend school in other districts under contractual agreements.
​
PictureBeginning of state Constitution. Image: New Jersey State Archives
- State Constitution   
      
   
        New Jersey's current state constitution was adopted in 1947 and is the third constitution following those adopted in 1776 and 1844. The primary reasons for adopting the 1947 constitution were to strengthen the role of the governor; consolidate state executive agencies; and restructure the courts under the central administration of the state Supreme Court and its chief justice.     
​
The constitution may be amended by approval of a majority of voters at a general election after both houses of the legislature have voted to place the proposed amendment on the ballot. A proposed amendment for submission to the voters can be passed either by simple majority in two separate legislative sessions, or by a 60% supermajority vote taken in one session. The governor's approval is not required for submission of the question for voter consideration. Unlike several states, New Jersey does not allow proposed constitutional amendments to be submitted for referendum through petition by voters without prior approval by the legislature.   
*  New Jersey State Constitution of 1947, NJ State Archives
*  Proceedings of the 1947 Constitutional Convention, NJ State Library
*  The New Jersey State Constitution by Robert F. Williams (2012)
*  New Jersey State Constitutions 1776, 1844 and 1947, NJ State Archives

​



-- Government employees

      According to the US Census Bureau's most recent American Community Survey conducted in 2021, New Jersey had a total of 424,337 full-time state, county and local government employees, The total state government payroll was $859.8 million and local government was $2.1 billion, according to the survey.
*  American Community Survey, US Census Bureau

       The State Government Workforce Profile published by the New Jersey Civil Service Commission reports that the verified workforce totals and salary levels are as follows:
  • Total State Workforce Count:                                                                           65,277 unique employees tracked within the centralized personnel profile.
  • Average Full-Time Salary:                                                                          $89,913 annually.
  • Median Full-Time Salary:                                                                                $82,259 annually.
  • Gender Distribution:                                                                                           55.9% female (36,491 employees),                                                                     44.0% male (28,734 employees), and                                                               0.1% nonbinary (52 employees).

       : Local government payrolls fluctuate around 340,000 to 360,000 active employees statewide, making up the vast majority of New Jersey’s total public workforce. Unlike the centralized state payroll, the New Jersey Civil Service Commission, however, does not publish a corresponding, uniform "Local Government Workforce Profile" containing universal salary medians, demographic breakdowns, or union metrics.

:        Local government labor union patterns diverge from the state baseline. While state-level workers are predominantly represented by the Communications Workers of America (CWA), local municipal and county workforces are fractured among the Policemen's Benevolent Association (PBA), the Firefighters Mutual Benevolent Association (FMBA), New Jersey Education Association (NJEA), local public works chapters of Teamsters, and American Federation of State, County and Municipal Employees (AFSCME).

       Public sector tracking resources like the GovSalaries New Jersey Registry aggregate roughly 400,000 local records, placing the macro average salary for local public employees at $77,358 with a median of $73,204. Individual local law enforcement and top municipal managers frequently cross the $300,000+ threshold



-- Government Revenue, Spending, Workforce and Debt

       Transitioning into the newly enacted fiscal cycle, New Jersey state government finances have reached record highs under updated legislative provisions.

        For Fiscal Year 2026, total state tax revenues stabilized at $57.8 billion. For the newly enacted Fiscal Year 2027 cycle (7/1/2026–6/30/2027), anticipated general state revenues are forecasted at $59.4 billion, backed by an adjusted total resource pool of $60.07 billion that incorporates healthy opening cash balances. 
On the expenditure side, Governor Sherrill signed a historic final $60.74 billion state spending plan just hours prior to the constitutional deadline. This baseline is further augmented by $30.5 billion in non-state federal funding streams, pushing comprehensive public spending across the state past $101.8 billion. While expenditures exceed incoming recurring revenues by a structural margin of $1.35 billion, the gap is completely absorbed by drawing from an estimated $6.1 billion undesignated year-end surplus cushion. This multi-billion dollar reserve, equivalent to roughly 8.8% to 10% of total appropriations, maintains the state's fiscal safety net well above long-term historical standards while securing a sixth consecutive year of 100% pension funding​
Fiscal Resource Metric Verified Figure / Status Direct Source Platform
FY 2027 State Enacted Budget $60.7 Billion Total Appropriations NJ Dept of Treasury
Total Outstanding Bonded Debt $41.5 Billion (10-Year Low) NJ Dept of Treasury
National Economic Outlook Rank 49th Nationally Rich States, Poor States
Fiscal Stability & Credit Quality Ranked 30th Nationally U.S. News & World Report
Real-Time Federal & State Spend Live Tracking Active US Government Spending

-- Taxes

       The overall tax burden (taxes as a percentage of personal income) on New Jersey residents was 10.15% in 2026, ranking 5th highest of all states and trailing behind the nation-leading 13.30% in Hawaii, according to the annual survey published by WalletHub.com. The state ranked near the top of all states in its real estate tax rate, holding a 1.88% effective property tax ratee on owner-occupied housing value, which sits as the highest raw percentage in the nation.
The statewide average residential property tax bill rose to a record high of $10,570—marking a steep year-over-year increase of roughly 4.7%. This marks the second consecutive year that the average local property tax line exceeded $10,000, according to official data released by the New Jersey Department of Community Affairs. 

       The nonprofit Tax Foundation’s State Tax Competitiveness Index ranked New Jersey 49th overall out of 50 states. “The states in the bottom 10 tend to have a number of issues in common: complex, nonneutral taxes with comparatively high rates. New Jersey, for example, is hampered by some of the highest property tax burdens in the country, has the highest-rate corporate income tax in the country, and has one of the highest-rate individual income taxes. Additionally, the state has a particularly aggressive treatment of international income, levies an inheritance tax, and maintains some of the nation's worst-structured individual income taxes.”, as noted by the Tax Foundation. 


        New Jersey’s Fiscal Year 2027 budget balances increased spending through enacting targeted revenue measures that place higher financial taxes and fees primarily on large corporations, data companies, and high-earning businesses, while restructuring property tax relief to focus on lower-income and middle-class residents. 

-- Revenue Enhancements and Business Tax Increases
While the administration avoided broad increases to individual state gross income tax brackets, the budget bills targeted high-revenue corporate and business activities to generate new funding streams: 
  • Nation's Costliest Data Broker Law (Assembly Bill 5328): In a novel revenue move enacted alongside the budget, New Jersey now levies sweeping annual registration fees on companies that sell or license the personal data of state residents. The fees are aggressively scaled based on data volume, ranging from a baseline of $5,000 up to an unprecedented $1.5 million annually for companies handling data on more than 4.5 million consumers. 
  • Alternative Business Calculation (ABC) Restrictions (AB 5323): Higher-income business owners see targeted tax increases through modifications to the ABC adjustment. Effective retroactively, the tax adjustment is slashed from 50% to 25% for individual taxpayers with gross incomes between $500,000 and $1 million, and the deduction is entirely eliminated for individuals earning over $1 million. 
  • Corporate Net Operating Loss (NOL) Cap (AB 5322): The state has temporarily capped Corporation Business Tax NOL deductions at $1 million per year. This restriction prevents major corporations from wiping out their immediate tax obligations with past losses, running through privilege periods ending before July 31, 2030.
  • Employer Medicaid Assessment Fee (AB 5324): Large employers face a new penalty structure if they rely on state-subsidized health infrastructure. Companies with 50 or more employees are now assessed a fee ranging from $325 to $725 per employee for any worker enrolled in the state’s Medicaid program. 

-- Major Property Tax Relief Restructuring
       
​       The state allocates more than $4 billion to direct property tax relief, but the flagship Stay NJ program underwent major scaling down to ensure long-term sustainability, lowering the program's structural cost from $1.2 billion to $742 million. 
  • The Slashed Stay NJ Income Cap: The largest shift drops the upper eligibility limit for senior homeowners from $500,000 down to $200,000. Seniors making above $200,000 are completely excluded from Stay NJ. 
  • New Tiered Stay NJ Benefit Structure: Instead of flat relief, the program now structures maximum benefits by income tiers:
    • $0 to $100,000 income: Eligible for the full $6,500 maximum benefit.
    • $100,000.01 to $150,000 income: Capped at a $5,000 maximum benefit.
    • $150,000.01 to $200,000 income: Capped at a $4,000 maximum benefit. 
  • Streamlined Application Integration: To reduce bureaucratic hurdles, New Jersey launched a singular integrated system via the PAS-1 combined application form. Seniors and individuals with disabilities can apply for the State of New Jersey Property Tax Relief Programs—including ANCHOR, Senior Freeze, and Stay NJ—simultaneously. 
  • ANCHOR and Senior Freeze Coordination: The ANCHOR program remains as providing baseline rebates to over two million moderate-income homeowners and renters, acknowledging the state's high tenant burden. Under the modern guidelines, the programs do not simply stack independently; the newly calculated Stay NJ benefit dynamically factors in and absorbs any relief an applicant has already received through ANCHOR and Senior Freeze to determine final quarterly distributions. 

​
-- Economic Metrics, Labor and Business Climate

       New Jersey’s statewide economy shows a strong baseline of household wealth heavily impacted by high statutory tax rates and an anticipated growth slowdown heading into late 2026 and 2027. The state's core economic, tax, and labor indicators reflect these updated 2026 benchmarks:

- Median Household Income
$103,556
2nd Highest Nationally (Behind Massachusetts)
- State Minimum Wage
$15.92 / hour (Standard rate) $15.23 / hour for seasonal/small employers
- Corporate Business Tax
11.50%
(Top marginal bracket)
1st Nationally (Highest corporate tax rate in the U.S.)
- Effective Property Tax
1.88%
1st Nationally (Highest raw percentage in the country)


-- Key Business & Employment Shifts
  • Corporate Outflows: The combination of the nation's highest corporate tax brackets and a newly limited $1 million Net Operating Loss cap has been cited by business lobbyists to be factors contributing to high-profile corporate exits in 2026. Fortune 500 firms, including Samsung and ExxonMobil, announcing plans to relocate their state headquarters by the end of 2026, collectively costing the state an estimated 7,000 jobs. 
  • Minimum Wage Trajectory: Following statutory consumer price indexing, the standard minimum wage rose by $0.43 to $15.92 per hour in 2026. Tipped employee cash baselines also advanced to $6.05 per hour. Small business and seasonal carve-outs are slated to continue a gradual step-up program until hitting full parity in 2028. 
  • Middle-Class Affordability Caps: While New Jersey has a high concentration of upper-middle-class earners requiring at least $162,235 to enter the tier, local indicators outline structural stability concerns. A family of four now requires an estimated $6,104 monthly cash flow simply to meet basic baseline expenditures before accounting for savings or long-term investments. 
  • Governor's Budget Message, Fiscal 2027 (7/1/2026-6/30/2027)
  • USGovernmentSpending.com
  • State of New Jersey Debt Report, Fiscal Year 2023 (NJ Department of the Treasury)
  • RichStatesPoorStates.org - New Jersey Profile
  • Government Credit Rating & Fiscal Stability - USNews.com
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