NJ Budget Dance Continues

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Gov. Christie delivers budget address for fiscal year 2015.

Lawmakers in New Jersey continue to fight back against Gov. Chris Christie's plan to cut pension contributions as a way to balance the budget.

Democratic leaders in the state senate and assembly have agreed on a deal that would increase taxes on businesses and on personal income over a million dollars while preserving the state's pension payment.  

Under the plan, the corporate business tax would rise from 9 to 10.35 percent, and the marginal tax rate on personal income above $1 million would go up to 10.75 percent from 8.97 percent.

It would suspend some tax abatements for businesses while restoring the Earned Income Tax Credit for women's health care, nursing homes, cancer research, nonprofits and tuition aid.

And it would follow through on the full $2.25 billion pension payment outlined as part of the state's 2011 reforms. Christie wants to cut the payment down to $681 million to help balance the budget, which is facing a large shortfall.

The legislature will consider the plan tomorrow, with a vote expected later this week.

But Christie says he will veto any plan that increases business and income taxes, making it unlikely that the Democrats’ budget will become law.