N.J. budget compromise is reached between Gov. Chris Christie, lawmakers

The deal, which is expected to be announced later today, is similar to Christie's initial $29.3B budget proposal

Andrew Mills/The Star-LedgerGov. Chris Christie holds a town hall meeting before a capacity crowd at the Roxbury Township Municipal Complex in Morris County to discuss property tax plan and affordable housing.

TRENTON — Gov. Chris Christie and lawmakers of both parties are finalizing a state budget compromise that restores funding for various programs for students, the disabled and other constituency groups, according to four officials familiar with the deal.

The deal between the Republican governor and the Democrat-controlled Legislature is expected to be announced later today, said the officials, who spoke to The Star-Ledger on the condition of anonymity in advance of a formal announcement. The budget remains very similar to Christie's $29.3 billion proposal unveiled in March, including some of the biggest cuts such as $820 million in aid to school districts.

The changes include:

• Keeping open Hagedorn Psychiatric Hospital in Hunterdon County.
• Keeping in place the Bergen County "blue laws" that forbid Sunday shopping in that county.
• More funding for welfare, adult medical day care, home-care services, education services for the blind, and various other programs for vulnerable residents.
• More funding for NJ STARS scholarships, the NJ After 3 program, and tuition assistance grants.
• Maintaining the State Commission of Investigation, a watchdog agency Christie had sought to merge into the state comptroller's office.
• Funding for cultural sites including the Battleship New Jersey and the Newark Museum.
• More funding for projects in Urban Enterprise Zones.

All restorations were matched with new cuts or revenue sources, the officials said. Details were not immediately available.

The budget is expected to be sponsored by Republicans, with Democrats providing the minimum number of votes required to pass it on time. The deadline for a balanced budget is July 1.

The budget compromise does not include a tax increase on millionaires, which the Democrats had hoped would fund other programs including property tax rebates for seniors and the disabled. Even with a final deal nearly in place, Assembly Democrats were holding a vote and making speeches to try to override the governor's veto of the tax increase.

Democrats argue the governor is giving a tax cut to the wealthy, who paid increased taxes for a year before the increase expired in December. Christie says he is opposed to any tax increases, and Assembly Republicans are expected to stick with him and vote against the millionaires tax.

By Lisa Fleisher and Claire Heininger/Statehouse Bureau