Still no deal on a New Jersey budget as shutdown looms

TRENTON, N.J. (AP) - New Jersey Democratic Gov. Phil Murphy says he and Democratic legislative leaders have so far failed to reach a deal on the state budget.

READ MORE: Governor Murphy, lawmakers set to continue budget negotiations

If a balanced budget is not in place by midnight Saturday the state government faces a shutdown.

The major sticking point has been how much to raise taxes. The first-term Democratic governor wants to raise the income tax rate on people making more than $1 million to 10.75 percent.

Senate President Steve Sweeney said late Friday he offered a 9.95 percent rate on income over $5 million. Murphy says too many of the wealthiest would not pay their share.

Legislative leaders say they are still willing to meet again with the governor and have another day to work out an agreement.