"We've had healthy discussions all along," said Sweeney.

Oliver said it's important to Christie that whatever deal is struck saves the $323 million that the administration already factored into the budget that starts July 1.

But she said Christie has moved off his original proposal that all public workers pay 30 percent of the cost of their health insurance premiums regardless of income, and that has led to something of a breakthrough in the talks. Most workers now contribute 1.5 percent of their salary toward health care.

"I need to get him to budge a little more and I may have a product," Oliver said.

The speaker is hoping to broker a deal that is acceptable to many in her 47-member caucus and to union leadership.

Both Sweeney and the Communications Workers of America have proposed alternate plans. Sweeney's proposal ties workers' health insurance payments to their incomes on a sliding scale. The union's plan saves money through bulk purchasing of prescription drugs and digital medical recordkeeping.

As of Wednesday, 13 Assembly Democrats supported legislating a health care package, according to two people involved in the discussions. They spoke on condition of anonymity because no deal had been struck. At least eight Democratic votes would be needed to pass a bill in the Assembly if all 33 Republicans endorsed the plan. However, Oliver has said she'd be reluctant to post the bill with a minimum number of Democrats endorsing it.

Sweeney has enough Democrat votes to get a similar bill through the Senate if most of the 16 Republican senators vote yes. He has been trying to gather additional Democratic support.

"I'm trying to sell a plan that's fair to the workforce but is actually fair to the taxpayers too," Sweeney said. "This is not about attacking workers. It's about being fair to the people who are actually paying these bills."

Christie wants to see pension and health care changes legislated. He says the changes are needed to shore up both severely underfunded systems. He wants state worker benefits more in line with what the private sector offers.

The CWA, the state's largest public worker union, wants health care to remain a collective bargaining issue. The union representing 55,000 state and local employees is in negotiations with the Christie administration over a new contract; its current contract expires June 30.

Christie at first refused to negotiate over health care, but retreated after the union filed a labor complaint. Health care was among the topics discussed during a bargaining session Tuesday. The two sides are scheduled to meet again in about a week.

A majority of Democrats in the Assembly have so far been reluctant to move legislation forward that changes health benefits while contract talks with the CWA are ongoing.

"It's CWA's position that health care has to be collectively bargained," said Hetty Rosenstein, the union's state director. "The CWA has put forth a very reasonable proposal that will save taxpayers hundreds of millions of dollars."

She said many union workers earn a modest pension of $20,000 to $25,000 after 25 years of service, retirement benefits that she said must remain secure.

Oliver said there is more widespread agreement in the Legislature to change the pension system. The retirement system for public workers, teachers, police and firefighters is underfunded by about $54 billion. Part of the shortfall resulted from years that the state has skipped or greatly reduced its annual payment to the system.

A plan proposed by Sweeney would set the rate of worker contributions based on the health of the funds each year. It would require workers to pay more to keep an enhanced pension benefit granted a decade ago and for cost of living adjustments in retirement, but would not increase the retirement age of 60 for workers hired before 2008. It would require the state to start making its annual contribution.