TRENTON -- New Jersey Democrats are proposing a compromise unemployment fund plan that would help buffer the blow to businesses facing an upcoming tax increase without cutting jobless benefits.

The plan would raise the unemployment tax on businesses by an average of $148 per employee to $920 a year, which is up from the $772 they pay now.

As of now it looks like businesses stand to see an average tax hike of $400 per employee starting in July.

Governor Chris Christie, who says the state's unemployment fund is broken, proposed cutting benefits of those collecting unemployment by $50 a week to help blunt the business tax.