TRENTON, N.J. (AP) — Senate President Stephen Sweeney has proposed an alternative to Gov. Chris Christie’s budget that would raise taxes on the state’s wealthiest residents to fund a required pension system payment.
Sweeney unveiled his budget proposal Wednesday, the same day trustees for one of New Jersey’s public employee pension funds voted to sue over Christie’s plan to skip a $900 million pension payment due June 30.
Sweeney’s budget would raise$1.6 billion in revenue, which would allow next year’s $2.25 billion pension payment to be made.
The Democrat’s proposal raises taxes on those earning more than $500,000 and adds a 15 percent business tax surcharge.
Christie has repeatedly vetoed tax increases.
The Republican governor and possible 2016 presidential candidate says the state cannot afford to make the full pension payment for this year or next year.