N.J. Gov. Murphy signs $38.7B budget, boosting spending about 3%

New Jersey Gov. Phil Murphy signed into law a $38.7 billion budget that boosts education, public pension and transit spending and also keeps state beaches and parks open as the July 4 holiday approaches. 

Murphy, a Democrat, also used his line-item veto to slash $48.5 million from the Democrat-led Legislature's budget. He coupled that with an executive order to hold as much as $235 million in spending in reserve until projected savings are realized or revenues meet expectations. 

Murphy acted on the budget, roughly 3% above the previous year's, on Sunday, hours ahead of a constitutional deadline.

Lawmakers turned down Murphy's request for a higher income tax on people making $1 million or more but added $50 million more for New Jersey Transit, among other programs.