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Top N.J. Democrat wants to scrap embattled state agency. Murphy says no way.

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A new battle may be brewing between Gov. Phil Murphy and New Jersey’s top state lawmaker, this time over a troubled state agency that recently saw its leader resign after months of controversy.

Last week, Lizette Delgado-Polanco stepped down as head of the New Jersey Schools Development Authority, which finances construction for 31 of the Garden State’s neediest school districts.

Delgago-Polanco, a Murphy ally who was appointed by the governor, was accused of running the agency like a “patronage pit,” firing staffers to make room for hiring friends and family.

The issue has drawn the ire of state Senate President Stephen Sweeney, who says he doesn’t plan to reauthorize taxpayer funding for the SDA, which has little money left in its coffers. Instead, Sweeney, D-Gloucester, wants to fold it into the state Economic Development Authority.

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