Christie agrees to keep decades-old tax agreement with Pa.

TRENTON, N.J. (WTXF/AP) - New Jersey Gov. Chris Christie decided to maintain a tax reciprocity agreement with Pennsylvania that lets people who work in either state pay income taxes at their home state's rate.

In September, the Republican governor announced he was pulling the state out of the nearly 4-decade-old agreement. That would've raised taxes for thousands of New Jersey and Pennsylvania residents who commute across the Delaware River for work.

But Tuesday, Christie announced state lawmakers passing the budget saved enough money, mainly through health care costs for public employees.

In September, the State Health Benefits Commission and Plan Design Committee identified and enacted healthcare reforms to save taxpayers more than $200 million for calendar year 2017 ($100.5 million for fiscal year 2017).

Then Monday, Christie signed bipartisan legislation to streamline and modify the state's pharmacy benefits system, which will save taxpayers up to $200 million more.

Christie said that eliminates the need to pull out of the deal, a move that had been sharply criticized by people and business owners in both states.