NEW JERSEY — Governor Mikie Sherrill and Democratic legislative leaders announced a tentative agreement on a $60.7 billion state budget plan. The fiscal year for this budget begins on July 1.

The budget includes adjustments to the Stay NJ tax break for seniors and a 25% increase in the state's child tax credit. The total budget amount is consistent with the initial proposal Sherrill presented in March. State Senate President Nick Scutari sought the increase in the child tax credit.

The agreement allocates $200 million each to the Senate and Assembly for legislative priorities. The budget also includes a full payment to the state's public-worker pension system, and the structural deficit decreased from $1.6 million to $1.4 million. Higher than anticipated tax revenue contributed to these figures, with the state reporting a surplus of more than $6 billion.

"We are proud that this budget agreement will help families across New Jersey and look forward to its passing in the coming days," Sherrill, Scutari, and State Assembly Speaker Craig Coughlin said in a joint statement. Coughlin is the sponsor of the Stay NJ program.

GOP Assemblyman Gerald Scharfenberger criticized the budget. "When you move the bar so high for ridiculous spending, you're happy when it doesn't go further," Scharfenberger said.

Lawmakers are scheduled for a weekend session on Sunday to vote the budget out of the Senate and Assembly budget committees. Democratic state Senate Budget Committee Chairman Paul Sarlo stated that the agreement is in place and indicated there would be no government shutdown. He added, "We're just up against the clock, and people are working really hard."

The Stay NJ program provides rebates of up to $6,500 on property taxes for residents aged 65 and older with a household income of $500,000 or less. Sherrill had originally proposed cutting the income threshold to $250,000 and the maximum payout to $4,000. During negotiations, Sherrill offered an additional $100 million for the Stay NJ program. Coughlin and his allies pushed for an additional $150 million for the program but ultimately withdrew the request.