The line-item veto of the spending plan Christie announced Thursday averts a potential shutdown of nonessential government services. The new fiscal year starts Friday.
The budget the Republican governor signed adds $150 million in public school aid on top of his original budget. It also keeps $447 million for the state's poorest schools, which was ordered by the state Supreme Court.
Christie vetoed outright a separate bill pushed through by Democratic lawmakers. The so-called millionaires' tax would have raised the income tax rate on some of New Jersey's wealthiest residents.
The Democrats can attempt to override the governor's actions, but they will need help from some Republicans to succeed.