Just hours before the Saturday midnight deadline Governor Murphy and Democratic legislative leaders have reached a deal to get a new state budget enacted.
“There will be no shutdown. The parks and the beaches are open.”
Murphy says the agreement calls for an increase in the income tax rate for personal incomes of $5 million and above.
“We agree that we must ask the wealthiest New Jerseyans to pay their fair share to allow us to ramp up our investments in school funding and property tax relief.”
The deal also calls for imposing a corporate tax surcharge averaging 2 percent over four years.
It does not include Murphy’s proposal to raise the sales tax.
Senate President Steve Sweeney says he’s proud that the governor was willing to compromise.
“It was never a disagreement on where we wanted to go. It was how to get there. And we got there in a place we all think is fair.”
The agreement includes providing $20 million for a program Murphy wanted to phase-in tuition-free community college.
The Senate and Assembly have scheduled an 8am Sunday session to vote on it.