Democrats in the Legislature are set to send Gov. Chris Christie a version of the 2015 state budget that would fully fund the state pension fund to the tune of $2.4 billion — as promised. It would also impose an income tax hike on millionaires and increase the corporate income tax rate from 9 percent to 10.35 percent for businesses earning more than $100,000 in profit. It would also suspend the $175 million Business Employment Incentive Program.
The moves are necessary because the state is facing a $650 million shortfall in the FY 2014 budget, which led to the Christie administration revising FY 2015’s revenue estimate downward by 5 percent. To meet these projections, Christie cut funding of the pension system — which already has a $38 billion unfunded liability.