- Associated Press - Saturday, June 30, 2018

TRENTON, N.J. (AP) - The Latest on New Jersey’s budget (all times local):

7:30 p.m.

New Jersey Gov. Phil Murphy and Democratic legislative leaders say they have reached a budget agreement.

Murphy, Senate President Steve Sweeney and Assembly Speaker Craig Coughlin announced the deal Saturday evening, just hours ahead of a midnight deadline.

The Democratic governor says the deal avoids a government shutdown.



Murphy says the deal will raise income taxes on people making $5 million and above to 10.75 percent from 8.97 percent. It will also raise business taxes by an average of 2 percentage points over four years. The current rate is 9 percent.

Murphy says the deal is “just the beginning” of moving toward a “stronger and fairer” state.

____

9:20 a.m.

New Jersey Gov. Phil Murphy sent Democratic legislative leaders a new tax revenue offer aimed at enacting a budget before a looming deadline and avoiding a shutdown.

Murphy said in a letter Saturday that he would take off the table his proposal to hike the sales tax. He says he is also accepting a legislative proposal to hike business taxes, but at different rates.

Another big change is on the income tax on people earning $1 million and above. Instead of a 10.75 percent rate on people earning over $1 million, Murphy is now calling for levying that rate on income of $1.75 million.

If the Democratic governor and lawmakers fail to enact a balanced budget before midnight, state government would close.

Lawmakers didn’t immediately respond to requests for reaction.

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