Sen. Paul Sarlo
The decision to shut it down came as a surprise to many, including local officials who said the news came without warning.
A huge budget shortfall could force the Christie administration to make painful cuts in state programs in New Jersey.
The budget now heads to Governor Chris Christie, who has said he won’t sign it. Republicans insist the proposal is unlawful because it relies on more revenue than the state is likely to collect.
Republicans and Democrats agree that cash-outs that can total hundreds of thousands of dollars strain local budgets. They differ on how to best fix the problem.