TRENTON, N.J. (AP) - Gov. Chris Christie is proposing a $33.8 billion dollar budget for the upcoming fiscal year that includes a much smaller payment to the state's pension funds than he'd agreed to in his first term.

TRENTON, N.J. (AP) Gov. Chris Christie is proposing a $33.8 billion dollar budget for the upcoming fiscal year that includes a much smaller payment to the state's pension funds than he'd agreed to in his first term.

He's also outlining plans to further reform the pension system during his annual budget address.

Christie says the state's largest teachers union has signed onto a plan to reform the public workers pension system.

New Jersey Education Association President Wendell Steinhauer says the union hasn't agreed to specifics but will work with the administration.

Tuesday's address is being closely watched as Christie considers running for president.

It comes the day after a judge ruled that his decision last year to scale back planned payments to the pension funds violated the deal reached during his first term.