The news website Politico is reporting that the governor and Legislature are negotiating a compromise to the state budget and related tax bills that have to be enacted by July 1.

Both houses of the Legislature have taken breaks in their respective voting sessions so leaders can meet with Governor Murphy. They are not expected to start voting again until after 4 p.m.

Until this afternoon, both sides had been digging in on their respective positions. Lawmakers are scheduled to vote today on a $36.5 billion spending plan and an increase in the Corporation Business Tax (CBT) to pay for it. Murphy has called for an increase in income taxes on millionaires instead and has said he would veto the Legislature’s budget if it reaches his desk.

NJBIA opposes both tax increases, arguing that New Jersey businesses are already over-taxed and adding to their burden could hurt the economy as more companies either move out of state or expand elsewhere.

UPDATE: At 5 p.m., Gov. Phil Murphy announced that he and legislative leaders had not reached a budget compromise. The Senate has resumed its voting session.