NJ lawmakers pave way for budget

June 20, 2008 6:07:13 PM PDT
Democratic legislators have reached agreement on a plan to cut benefits for state and local government workers and teachers in New Jersey. The deal reached tonight clears the way for agreement on a $32.8 billion budget plan.

Senate President Richard Codey says he expects the Legislature to approve the budget Monday, a full week before the state's July 1 constitutional budget deadline.

Senate Majority Leader Stephen Sweeney and Senate Budget Chairwoman Barbara Buono say the agreement, reached after closed door meetings with Assembly Democrats, will:

  • Raise the retirement age from 60 to 62.
  • Require someone to earn $7,500 per year to receive a taxpayer
  • funded pension.
  • Eliminate Lincoln's Birthday as a state worker holiday.
  • Allow the state to offer incentives to workers not to take taxpayer
  • paid health insurance.