UPDATE: No N.J. shutdown as Murphy, top lawmakers reach deal

UPDATE: 5 things you need to know about the budget deal

Gov. Phil Murphy's latest offer to New Jersey lawmakers to reach a state budget deal and avoid a state government shutdown is already dead.

"It's things we've already said no to," state Senate President Stephen Sweeney, D-Gloucester, told NJ Advance Media on Saturday morning.

That was Sweeney's response to a letter that surfaced Saturday morning which Murphy sent his fellow Democrats who control the state Legislature.

In the letter, Murphy effectively said: Give me a version of my millionaires tax. I'll go along with a Corporate Business Tax. And if we can agree on those, I'll back away from a restoration of the sales tax to 7 percent.

But Sweeney said Murphy presented that compromise to lawmakers Friday, and they rejected it.

"He has not put out any new offer," the Senate president said. "It's what we said 'no' to yesterday."

Sweeney added: "He's negotiating in bad faith."

The deadline for a budget is midnight Saturday. Otherwise, Murphy could order the second state government shutdown in two years.

Meanwhile, making matters worse for the Democratic governor, New Jersey Republican legislators could come to the aid of Democrats if the governor vetos the budget they sent him last week.

Republicans could be prepared to give Democrats enough votes to override Murphy if he decides to veto the budget.

"There are serious discussions," a source in the Republican Assembly told NJ Advance Media on the condition of anonymity because they weren't authorized to speak on the record about the ongoing talks within the caucus.

"There are very serious discussions so that we don't have a shutdown," the source said. "(Murphy is) in serious risk of an override."

Murphy is set to meet with legislative leaders Saturday afternoon.

Murphy and top lawmakers are locked in a disagreement over competing plans for New Jersey's state budget, which must be approved before the fiscal year begins Sunday. Without a budget, Murphy can shut government offices, state courts, state parks and state-run beaches.

The Democrats who lead Legislature agree they want to raise somebody's taxes.

But Sweeney and state Assembly Speaker Craig Coughlin, D-Middlesex, have so far opposed Murphy's proposal for a millionaires tax and a bump in the state's sales tax.

On Friday, they offered Murphy a revised version of the Corporate Business Tax and agreed to a millionaires tax on people who earn more than $5 million. Murphy rejected their proposal.

In his letter, Murphy said he offered to raise the millionaires tax threshold to $1.75 million earners at a 10.75 percent tax rate and a four-year corporate business tax surcharge of 2 percent.

Sweeney said lawmakers rejected that Friday and offered their latest compromise in response.

NJ Advance Media staff writer Samantha Marcus contributed to this report.

Matt Arco may be reached at marco@njadvancemedia.com. Follow him on Twitter @MatthewArco or Facebook.

Brent Johnson may be reached at bjohnson@njadvancemedia.com. Follow him on Twitter @johnsb01.