NJ Legislature Set To Vote On $36.5 Billion Budget

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TRENTON, N.J. (CBSNewYork/AP) — New Jersey's Legislature was set to vote on a $36.5 billion budget Thursday, though Gov. Phil Murphy seemed poised to reject it.

The Democrat-led Assembly and Senate were scheduled to vote on the spending plan Thursday. It tackles issues such as tax rates, credit and rebates as well as funding for social programs and affordable housing.

But Murphy has said he would veto any measure that does not include what he calls sustainable revenues. He's criticized the lawmakers' revenue sources, including a hike in the business tax rate, a tax amnesty and savings realized from audits.

Instead Murphy is calling for raising income taxes on people who earn more than $1 million and hiking the sales tax to 7 percent from 6.625 percent.

If lawmakers don't enact a balanced budget by June 30, state government faces a shutdown.