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Gov. Phil Murphy delivered his final State of the State address on Tuesday afternoon, recapping his most long-standing initiatives that have defined his state and education agendas during his eight-year governorship.
Murphy, a two-term Democrat who has served as New Jersey’s governor since 2018, also provided words of encouragement to Gov.-elect Mikie Sherrill, who will be sworn into office next Tuesday in Newark. Murphy said 2026 will “mark the beginning of one of the most iconic chapters in our state’s history.”
During his address delivered in Trenton, the state’s outgoing leader pointed to his top education accomplishments, including expanded full-day kindergarten, increased school state aid to districts, including Newark, fully financing the school funding formula, and a new law requiring schools to adopt phone-free policies.
“We made long-neglected, but desperately needed, investments in our state’s future. From fully funding New Jersey’s school funding formula for the first time in history to rebuilding our roads, railways, tunnels, and bridges,” said Murphy during his Tuesday address.
Murphy’s final speech sets the stage for education priorities Sherrill may pursue as districts like Newark Public Schools, the state’s largest, grapple with crumbling school buildings, student performance, and a rise in English language learners and students with disabilities.
On Tuesday, Murphy highlighted his initiative to provide free community college to low-income residents and his administration’s work in bringing artificial intelligence to New Jersey. Last year, the state launched a set of resources aimed at helping educators understand, implement, and manage AI in schools.
“I promised to invest in our students, workers, and innovators — so they can work together to unlock new, AI-powered breakthroughs that change lives — all around the world — for the better,” said Murphy during his address.
Among his final acts as governor, Murphy signed a law last week requiring all New Jersey school districts to adopt new restrictions on the use of cellphones and other internet-enabled devices in K-12 schools. On Tuesday, Murphy said, “the law is common sense” and believes the state should go further.
In December, Newark Public Schools was awarded $176,625 to purchase a storage system as part of the state’s Phone-Free Schools Grant Program, a $3 million appropriation in the fiscal year 2026 budget.
Murphy praised Sherrill for identifying children’s online safety as a priority for her incoming administration. On Monday, Murphy also released the New Jersey Youth Mental Health Strategic Plan, a plan to continue youth mental health support across the state. The plan details strategies already underway and highlights other opportunities “to foster youth resiliency, reduce stigma, facilitate care delivery, and support caregivers,” a state press release stated.
“The bottom line is: We have seen the impact smartphones and social media have had on young New Jerseyans. As a parent, I’ve seen it first-hand,” said Murphy during his address. “It’s time to step up and protect our kids. We owe it to them, as well as future generations.”
Murphy made no mention of the need to fund the state’s Schools Development Authority, which is responsible for paying for construction projects in Newark Public Schools and 30 other high-poverty districts. But with no long-term financing plans, projects such as those to replace University High School in Newark are at a standstill.
Over the last three fiscal years, New Jersey has allocated nearly $2 billion for school construction projects. Still, there is an immediate need to renovate or replace more than 100 buildings in the 31 high-poverty school districts due to age and condition, according to the School Development Authority’s statewide strategic plan. Last year, the state agreed to replace 13 of Newark’s oldest public school buildings, but that deal leaves out 20 schools, district officials have previously said.
On Tuesday, Murphy said his administration is leaving the next governor a nearly $7 billion surplus, “a surplus that is more than 15 times greater” than the $409 million his administration inherited.
Murphy noted Sherrill’s commitment to New Jersey and her varied resume, which includes stints as a U.S. Navy helicopter pilot, a federal prosecutor, and a U.S. Congresswoman.
“Mikie has done it all. Like a true Naval aviator, she has navigated the chaos in Congress with grit and grace. She has inspired millions of New Jerseyans,” Murphy said. “And Mikie and Dale are going to be amazing. This job is not easy. But it is the journey of a lifetime.”
Education leaders are closely watching to see how Sherrill’s administration plans to start the year, including insight into this year’s state budget amid changes to federal funding. This school year, Murphy provided nearly $90 million in K-12 school aid. In New Jersey’s largest school district, 84% of Newark Public Schools’ budget came from state aid, a record-high $1.3 billion, but it’s too early to tell if Newark will receive a similar amount for the upcoming school year.
Sherrill did not make remarks during Tuesday’s State of the State address, but she has previously expressed plans to update the state’s school funding formula to ensure more equity among school districts. During her gubernatorial campaign, Sherrill said she would “work hard to drive down costs” in the state and would evaluate programs that are working and prioritize support for those. She is also focused on getting federal funding for education back from the Trump administration.
The former congresswoman has also pledged to tackle student performance, segregation in schools, and the expansion of the state’s Interdistrict Public School Choice program, which allows students to attend a public school in a different district. Newark Public Schools does not participate in the program, but an expansion could have implications for the district, where enrollment has increased by nearly 20% over the last five years.
Sherrill has supported phone-free schools, a priority in line with her campaign’s push to raise awareness about the dangers of social media and their effects on youth mental health. She will be sworn in on Tuesday, Jan. 20, at the New Jersey Performing Arts Center in Newark.
Jessie Gómez is a reporter for Chalkbeat Newark, covering public education in the city. Contact Jessie at jgomez@chalkbeat.org.
