TRENTON, N.J. (AP) — New Jersey Gov. Chris Christie proposed a $32.9 billion budget Tuesday that allows more poor residents to enroll in Medicaid and increases public school aid but defers property tax rebates for three months.

Christie's proposal for the fiscal year that starts July 1 comes as the state rebounds from Superstorm Sandy, the worst natural disaster in state history. The budget counts on federal funding to stimulate the state's still-sluggish economy and help coastal communities rebuild. Some 25 municipalities lost at least 5 percent of their tax base after Sandy, because of destroyed homes and closed businesses.

The budget also adds nearly $100 million to public education and expands the Medicaid rolls by 300,000 by allowing the federal government to take over costs.