Republican lawmakers today unveiled an alternative budget proposal that would reallocate $1.32 billion of spending from the budget proposed by Gov. Corzine.

Republican leaders praised Corzine for holding the line on state spending, but said they disagreed with some of his priorities.

The Republican plan would restore $375 million in property-tax rebates and $150 million in municipal aid cuts, as well as redirect $500 million in annual and recurring revenues into the state's transportation funds.

The money would come from a number of areas where Republican lawmakers say money is being wasted or there is little accountability to the public, including "special municipal aid" grants, Abbott school districts, and urban enterprise zones.

The proposal would also increase the retirement age for many government employees from 60 to 62 and change the pension formula to determine payouts based on the last five years of a person's employment, rather than three.

According to the state constitution, the governor and the legislature must agree on a budget by July 1. Democrats currently control both the House and the Assembly, but Republicans said they are optimistic their ideas will be taken seriously.

"This plan for a better New Jersey is a common sense financial strategy to make our state more affordable and your government more accountable to its citizens," said Senate Republican Leader Tom Kean of Union County. "We've listened to New Jerseyans over the last few months as they told us what should be done, and we think we've come up with an ambitious, but practical approach that lets everyone get more of what they want from state government."

Contact staff writer Adrienne Lu at 609-989-8990 or alu@phillynews.com