New Jersey Nears Budget Deal

New York, NY —

Legislators and Gov. Jon Corzine hope to reach a state budget deal this week. And it could happen as early as today.

But while those negotiations continue in Trenton, the Assembly will move today to avoid a tax increase on employers - at least for now. Members will likely vote on legislation that would pump $260 million into the state's fund that pays benefits to out-of-work New Jerseyans.

Over the last 14 years Democratic and Republican legislators and governors diverted $4.7 billion from the fund to help hospitals pay for treating the uninsured. And the fund is now near a minimum level that would trigger a $350 million increase in employer payroll taxes.