(AP) - New Jersey Gov. Jon S. Corzine has signed a new $29 billion budget into law.

The spending plan that takes effect Wednesday raises $1.3 billion in new taxes on businesses and residents. It eliminates property tax rebates for the those under 65 who make more than $75,000 annually.

The budget increases so-called sin taxes on liquor, wine and lottery winnings over $10,000. It raises income taxes for one year on the wealthiest and extends a 4 percent surcharge on corporate business taxes that was set to expire.

The budget relies on $2.2 billion in federal stimulus money.

Democrats say the budget is responsible and prudent in harsh economic times. Republicans say it relies too heavily on federal stimulus money and other one-time revenues.