Gov. Phil Murphy said Thursday he will avoid a government shutdown and sign a budget by the Sunday deadline, putting to rest growing fears that intra-party fighting in Trenton will take a toll on the public next week.

"Going into our July Fourth holiday, I cannot and I will not subject our residents to the inconveniences they would suffer under a government shutdown," Murphy said at a news conference in Secaucus to highlight his investments in NJ Transit. "I want our families to know that come Monday, July 1, our investments in them will be made without delay and that state services will be available to them."

The announcement by Murphy answers the biggest question hanging over the capital since Democrats in the Legislature sent him a $38.7 billion budget last week without many of the governor's top revenue priorities, notably a tax increase on incomes over $1 million. That budget also drained Murphy's plan to build a surplus and adds what he calls legislative "pork" that defies sound budgeting.

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The so-called millionaires tax has been one of Murphy's top campaign promises that he has been unable to convince fellow Democrats on supporting. Those same lawmakers voted multiple times in favor of the millionaires tax under Republican Gov. Chris Christie.

Stripping the budget of the millionaires tax and returning it to Murphy's desk acted as a test for the governor: Sign a budget without a revenue source he campaigned on or stand firm and shut down state government.

Murphy has said all week that "all options are on the table," keeping open the possibility of a shutdown, which would close courts, motor vehicle offices and state parks and beaches. But people work hard all year to enjoy the state's recreation areas and closing state government "only punishes the innocent," he said.

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Murphy still has the option to veto legislative line-items added to the budget, such as grants to hospitals and colleges.

"I'm just taking one option off the table," Murphy said. "The final details on the budget that I sign, or will sign, are still to be determined. But I will meet our constitutional deadline."

Murphy is expected to make a "budget announcement" Sunday, according to Politico New Jersey, providing an opportunity for him to detail his actions. Senate President Stephen Sweeney, the Legislature's top Democrat, said he expects Murphy "will do something with it, but it’s a good budget."

If Murphy does strike spending from the budget, the Legislature could attempt to override his veto. Sweeney, who has a fractured relationship with Murphy and compared him to President Donald Trump earlier in the week, would not commit to an override.

"We’re not saying we’re going to rush out and try line-item veto overrides. We want to see what he’s doing," said Sweeney, D-Gloucester.

Assembly Speaker Craig Coughlin, D-Middlesex, declined to comment.

The announcement by Murphy promptly drew the approval of the state's largest union, the Communications Workers of America, which had been pressing lawmakers to support the millionaires tax.

Sweeney was the most vocal opponent of the tax and said he wanted Murphy to commit to structural reforms such as pension and health benefits reform for public employees before re-considering his position.

The union has negotiated some savings with Murphy, who has said he would not consider reforms until the state meets its funding commitment to public employee pensions.

"We are disappointed that the Legislature would not support this plan. They were more than willing to accept the health care savings we achieved, but they were not willing to ask the super wealthy, who have been showered with tax cuts for a decade, to pay a tiny bit more," state director Hetty Rosenstein said in a statement.

Murphy recommitted Thursday to seeing through his campaign to see the millionaires tax passed. A group supporting his agenda, which he raises money for, has been airing advertisements through the budget season urging the passage of the tax. It's unclear what steps Murphy may take this summer.

"If anything, our megaphone will get larger and louder," Murphy said.

Columnist Charles Stile contributed to this report.