New Jersey Governor Christie is proposing a state budget for the coming fiscal year that calls for tax cuts, an increase in education aid, and a bigger pension fund contribution.

The governor says the people have spoken and they want lower taxes.
Christie’s 32 billion dollar budget calls for phasing in a 10 percent income tax cut over three years.

“Lower tax rates will relieve overburdened middle class families. They’ll keep job creators here. They’ll begin to bring us into a more competitive situation with our neighbors in the region.”

The budget plan increases school aid by $213 million.

It also includes a $1.1 billion state contribution to the public employee pension plan which would be the largest amount ever.

The budget relies on a projected seven percent increase in revenue that Christie says allows the state to make the right choices now after two years of sacrifices during the economic downturn.

“We have left the dark times of lost jobs worsened by overtaxing, overspending, and overborrowing. Please be clear on this point, we will not return to the path of higher taxes under any circumstances. Not on my watch.”

The budget proposal is getting a cool reception from Democrats who control the New Jersey Legislature.

Democratic leaders say Christie’s proposed income tax cut would have the biggest benefit for the wealthy.

Assembly Speaker Sheila Oliver says the $70 reduction middle class families would get in the first year of the three-year phase-in is not enough to make a difference.

“You find people in working class towns all across this state who saw 400, 500, 600 dollar increases in their property taxes. $70 dollars doesn’t help them.”

Senate President Steve Sweeney says the governor’s focus is wrong.

“It’s not the income tax that’s a problem in this state. It’s the property tax. I don’t know anyone that’s screaming for an income tax cut, but I sure know people are crying to help property taxes.”

The Democrats say they plan to come up with a counter proposal that will focus on property tax reduction.