(AP) - The New Jersey Senate has approved a $29 billion budget that raises taxes on businesses and some residentsbut preserves property tax rebates to homeowners with limited andfixed incomes.

The vote was 22 to 17.

The Assembly approved the spending plan earlier Thursday by a mostly party-line 45-34 vote.

The recession-year budget raises $1.3 billion in new taxes on liquor, cigarettes and the wealthy. It extends a 4 percent surcharge on the corporate business tax that was to expire, and realizes $500 million by suspending rebates to renters and higher income homeowners. Republicans say all that amounts to $2.8 billion in tax increases.

The budget must be signed by the governor by July 1.