NEW YORK, NY June 15, 2009 —As New Jersey struggles with sliding revenues, Trenton lawmakers are expected to sign off on higher taxes for upper income households and roll back the state's popular property tax rebate program. They're also planning to increase taxes on cigarettes, wine and spirits.

The Democrat-controlled legislature is poised to spend $1.3 billion less than Governor Corzine's nearly $30-billion package introduced earlier this year. The proposed budget includes $300-million in labor cost savings negotiated with state worker unions in exchange for a scheduled wage hike and days off for a no-layoff guarantee.

If passed, next year's budget will be $4 billion less than last year. Republicans say forgoing required payments into public employee pensions and Federal stimulus money to appear balanced will create future complications.