New Jersey Gov. Phil Murphy, Democratic leaders reach budget deal

TRENTON, N.J. (AP) - New Jersey Gov. Phil Murphy and Democratic legislative leaders say they have reached a budget agreement. Murphy, Senate President Steve Sweeney and Assembly Speaker Craig Coughlin announced the deal Saturday evening, just hours ahead of a midnight deadline.

The Democratic governor says the deal avoids a government shutdown.

Murphy says the deal will raise income taxes on people making $5 million and above to 10.75 percent from 8.97 percent. It will also raise business taxes by an average of 2 percentage points over four years. The current rate is 9 percent.

Murphy says the deal is "just the beginning" of moving toward a "stronger and fairer" state.