The State of New Jersey has found itself in the midst of a debate regarding its $10 Billion Surplus. Attendees of the ReNew Jersey Business Summit & Exposition, New Jersey’s premier economic development forum hosted by the NJ Chamber of Commerce, hotly debated the best way to use the funds.

Some participants at the summit argue that the surplus should be used to fuel business-focused initiatives that would generate additional revenue and help replenish the starving Unemployment Insurance fund rather than sit idle.

However, the Department of the Treasury argues that the state's surplus is actually below the national average. According to the National Association of State Budget Officers, the national average surplus fund balance for states is 24.7% of the annual budget. Meanwhile, the proposed surplus for New Jersey's 2023 budget would be 18.9% of the budget. 

Despite this, many in attendance at the summit still believe that the surplus could be better used to boost revenue and replenish the Unemployment Insurance fund.

Governor Phil Murphy maintains the surplus would provide a cushion for any potential economic downturns, which many analysts predict is on the horizon. Having such a surplus would enable the state to continue providing essential services and withstand any future decline in state revenue. Furthermore, having a larger surplus has contributed to recent credit upgrades for the state, which is a significant advantage. This has helped the state receive three credit upgrades in the past 12 months; in contrast, a low surplus was a factor in the string of credit downgrades under the previous administration.