Christie vetoes tax increases, signs New Jersey's $34 billion budget into law

Republican New Jersey Gov. Chris Christie used his veto pen Friday to strip more than $1.6 billion from the 2016 budget approved by the Democratic-controlled Legislature and signed a roughly $34 billion budget into law.

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Christie vetoed an income tax increase and corporate business tax. He also conditionally vetoed the Democrats' millionaires' tax, but asked the Legislature to approve an increase in the earned income tax credit. The Democratic-led Legislature has called for increasing the credit.

Christie signed the budget on Friday ahead of a deadline for enacting the budget on Tuesday.

That's the same day he is expected to announce a run for the Republican nomination for president, according to several people familiar with his political plans. They spoke to The Associated Press on condition of anonymity because they were not authorized to pre-empt Christie's announcement.

The Democrat-led Legislature sent Christie a $35.3 billion budget on Thursday. Democrats had included a tax on income over $1 million, as well as a 15 percent surcharge on the corporate business tax to raise revenue and make the $3.1 billion payment to the state pension fund required by a 2011 law, which Christie had signed.

Christie slashed that amount after the state Supreme Court this month sided with Christie concluding the governor and Legislature must work out the payment through the budget process.

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Christie's said he vetoed more than $1.6 billion in spending from the budget and that "once again the Legislature" over spent.

The 2016 fiscal year budget advanced Thursday by a 24-16 vote in the Senate and by a 47-31 vote in the Assembly; the debate surrounding it fell along party lines. Republican lawmakers argued the budget would drive business out of the state and did not truly solve the state's pension funding problem. They called on Democrats to sit down with Christie to redraft a pension solution.

The budget doesn't address the state's transportation trust fund, which is headed for insolvency in the next fiscal year.

The budget's passage likely caps the Legislature's busy season as the Assembly, which is at the top of the ticket in November, looks ahead to the fall election and as Christie prepares his campaign plans.