"There's a strong feeling that we're headed in that direction," he said.

If a budget is not delivered to the governor and signed into law before July 1, the government technically shuts down. Neither Oliver nor Sweeney expect that to happen.

"We all understand that it is to no one's advantage not to hunker down and get a budget deal delivered and signed by June 30," said Oliver.

The debate over the budget won't start in earnest until after employee pension and health benefits reform legislation gets a final vote in the Assembly on Thursday.

Sweeney acknowledged that the deadline is looming and accepted responsibility for taking this year's budget deliberations to the wire.

"I let it go on too long," he said of debate on the benefits bill, which was extended in hopes of striking a deal with the public worker unions or swaying more Democrats. Neither happened.

The bill passed the Senate 24-15 Monday. But just eight Democrats joined all 16 Republicans to vote yes, and public workers staged several protests outside the Capitol.

The bill requires sharply higher pension and health insurance payments from a half-million public workers, including teachers, police and firefighters. The compromise legislation saves an estimated $10 million in health care costs the first year, not the $323 million the Christie administration booked in its budget proposal.

A budget drawn up by Democrats is likely to contain a renewed income tax surcharge on millionaires. Sen. Ray Lesniak has already introduced separate legislation to reinstate the tax, which some Democrats say is needed to help soften cuts to programs and services such as Medicaid, women's health clinics and public schools.

Christie has said repeatedly he would veto the tax.

Specifically, the Democrats likely would be looking to draft a budget that includes $300 million for Medicaid and $7.5 million for women's health clinics.

Oliver also wants to see at least some of the $93 million proposed cut to Urban Enterprise Zones restored to help save economic revitalization efforts in cities' down towns and municipalities' Main streets.

The Supreme Court has ordered the state to increase aid to the poorest school districts by $500 million. Sweeney wants to add an additional $500 million to fully fund all public schools that the court has deemed below adequate funding.

The treasurer said last month that spring income tax collections were more robust than anticipated, providing the state with $500 million in additional revenue.