New Jersey Governor Phil Murphy and legislative leaders still haven't struck a deal for a new state budget, but the Governor is offering to compromise to get the sustainable revenues he's insisting on.
In a letter to lawmakers, Murphy proposes a modified corporate business tax surcharge, a small hike in the marginal tax rate on personal income over a million dollars, and a gradually raising the sales tax rate back to seven percent over two years.
And he says he's prepared to accept additional compromises from the legislature including proposals to restore the Homestead Rebate to its prior level and a one-time tax amnesty program.
Republican Assemblyman Michael Patrick Carroll says as a member of the minority party in the legislature he's not involved in the budget talks, but he has an idea of what might happen.
"I imagine at some point what will happen is all the three warring parties will get together and adopt a budget which combines the worst elements in both plans."
The Governor says all options are on the table including a state government shutdown if a budget is not enacted by the Saturday deadline.
"Until we break this crazed fever of kicking the can down the road gimmicks, phantom revenue, phantom savings, all options are on the table, and sadly that includes shutting the state down."
Senate President Steve Sweeney and Assembly Speaker Craig Coughlin issued a joint statement saying they’re reviewing Murphy’s proposals and will give his offer full consideration along with other options they’re evaluating.