Democrats' budget exceeds $30B, Sweeney says, while Gov. Christie had proposed $29.6B budget Watch video
TRENTON — After months of negotiations, Democratic lawmakers ironed out the final details of a state budget that restores more than $1 billion to underfunded school districts and also pumps millions of dollars back into property tax relief.
The Democrats' budget exceeds $30 billion, according to Senate President Stephen Sweeney (D-Gloucester), who announced the deal after a three-hour meeting with his caucus. Gov. Chris Christie had proposed a $29.6 billion budget.
Sweeney also announced a separate bill that would reinstate a "millionaires tax" -- it would raise the tax rate on any income above $1 million from 8.97 percent to 10.75 percent. New Jersey would eclipse all of its closest neighbors -- New York, Pennsylvania and Connecticut -- with that rate.
Sweeney said more than $500 million in estimated revenue would be used to restore funding to suburban school districts. Christie has vowed to veto any tax increases, however.
"It's not theater, it's principle," Sweeney said. "This millionaires tax is about shared sacrifice."
The finishing touches were hammered out while more than 8,500 protesters raged outside the Statehouse against a pension and benefits bill, also backed by Sweeney, headed for final passage in the Assembly today.
The Democratic proposal also provides $50 million in public safety funds for communities that have lost police and firefighters to layoffs and attrition. Layoffs in cities like Camden and Newark over the last year have been followed by sharp rises in violent crime.
Senate President Stephen Sweeney gives a short press conference today saying the Democrats are signing off on the budget and passing it onto Gov. Chris Christie. Homestead property tax rebates would be doubled, not tripled as Christie had proposed. The Senior Freeze program, which freezes property taxes for people over 65 who make less than $80,000, would go back to full funding after being hamstrung by last year's budget cuts.
Democrats are planning to cut $300 million from the budget in "efficiencies."
"There are some programs funded where the money is never fully used," he said.
Sweeney, who took a public drubbing from most of his caucus before the Senate passed his controversial pension and benefits bill last Thursday, unified Democrats in both houses behind his budget proposal today.
The budget depends on an $800 million windfall coming from unexpected income tax revenue. The Christie administration had cautioned that only $450 million to $500 million would come in, but Sweeney said the Office of Legislative Services on Wednesday assured him that he could count on $800 million.
A spokesman for Christie declined to comment on the bill, saying the governor would hold off until it lands on his desk.
The bill will be sponsored by Sen. Paul Sarlo (D-Bergen), chairman of the Budget Committee, and will be taken up by that panel Monday. Sweeney said he expects it will move quickly through the Legislature next week. The budget deadline is next Friday.
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