Deal reached on New Jersey's tax cap

(AP) - New Jersey Governor Chris Christie and the Democratic leaders in the Senate have struck a deal to cap spending and property tax growth at 2 percent.

The compromise announced Saturday likely ends an impasse between the Republican governor and Democrats who control the Legislature.

Assembly Speaker Sheila Oliver has not signed off on the plan. But Assembly Budget Committee Chairman Lou Greenwald says Assembly Democrats support the concepts outlined in the compromise.

The deal allows towns and school districts to exempt costs they cannot control, like health care and pension costs.

Schools could exceed the cap if enrollment spikes, while towns would get a reprieve for debt payments and capital expenses like fire trucks.

Otherwise, the cap could be exceeded only by voter approval.

Christie lauded the bipartisan consensus as being good news for New Jersey's beleaguered taxpayers.

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