New Jersey Democrats are moving ahead with a proposal to raise taxes on millionaires.
Senate Budget Committee Chairman Paul Sarlo says revenue that the two-year tax generates would go to suburban school districts, thereby providing direct property tax relief.
Gov. Chris Christie has vowed to veto the tax.
The millionaires' tax is separate from a state budget bill that's also being debated Monday.
Democrats who control the Legislature have proposed a $30.6 billion budget that is $1 billion higher than the budget Christie proposed.
Democrats want to provide additional aid to public schools, give more money to cities and towns experiencing crime spikes, and restore an income tax credit for the working poor.
Their budget relies on $300 million more in revenue than the amount the governor certified.
Politics
Christie can use the line-item veto to remove any items from the budget.
A balanced budget must be in place by July 1, or the state technically runs out of money and the government shuts down.
