Late on Friday, Governor Murphy signed a nearly $57 billion budget into law, including record spending for K through 12 education, full funding of the state's public worker pension obligation and property tax relief.

It also includes a five year tax increase on the state's top earning companies to fund New Jersey transit.

But one thing not included in the massive budget bill.

Tens of millions of dollars for a controversial art museum project in Jersey City.

State officials sent a letter this weekend to the heads of the center Pompidou in Paris, telling them the state is pulling funding and that the project is, quote, no longer feasible.

But our senior political correspondent David Cruz reports.

Mayor Steve Fulop is claiming the state's about face is less about money and more about political retribution.

There was little pomp accompanying the official end of the century Pompidou X project, just a couple of formal letters to museum and city officials marking the end of what Mayor Steve Fulop hoped would be a signature project of his administration.

We've decided to pause this project indefinitely, wrote Steve Economic Development Authority CEO Tim Sullivan.

The legislature has rescinded financial support, leaving us to determine that this project is unfortunately no longer feasible.

The other letter from the Department of State to the Jersey City Redevelopment Authority was more specific, saying the legislature, quote, de appropriate $24 million and that state canceled the remaining $18 million.

All of it going back to the general fund.

The fact that they took away money that they previously appropriated, I mean, they never do that ever.

And to think about a $60 billion budget with tons of things that probably are unnecessary in there and then to go back multiple years and take away money.

And that's started the week I endorse Andy Kim, I think it kind of speaks for itself.

The state says this wasn't personal.

It was strictly business.

They say the museum would need massive public subsidy and that the city's plan to keep it funded into the future just wasn't viable.

The state's been involved in the Pompidou process from the beginning, said Fulop, adding today.

Whatever.

I mean, it is what it is.

It's unfortunate and shortsighted on their part, and I'm disappointed.

The news that the state was pulling out of the deal was well received by mayoral candidate and former Governor Jim McGreevey, who said the cost to taxpayers over the next decade would be, as he put it, a third of $1,000,000,000.

The burden is going to be on the taxpayers.

You know, whether you look at NJ PAC or you look at other high end investments in arts and entertainment, it's all well and good if it's going to be self-sufficient, if the burden is going to be upon the entity.

Many of the state's largest arts institutions do get regular public funding for operations and sometimes for capital improvements.

But in over $200 million, just to open the doors, Pompidou or the French Museum, as its critics were fond of calling, it was just too heavy a lift, says the state.

Kevin Bing is a Journal Square based activist and former city council candidate.

He was agnostic on Pompidou in the beginning, but gives full credit for taking the shot.

For going for Pompidou was a big swing.

It's a big at bat.

It's a big swing.

When you make big swings, that's you know, it's not easy.

And it had a lot of moving parts.

You know, you needed the museum that wanted to play ball and you obviously needed the state of New Jersey.

And it's really strange.

The state of New Jersey just left us at the dance.

So what now?

The city could sell the building and more than recouped the $10 million it cost to buy in 2017.

But many residents liked the idea of a building with a public mission.

Originally, it was purchased to be the home of the New Jersey City Museum and Community Center, which still has a nice ring to it and would probably be less pricey if not quite as Pompidou.

I'm David Cruz.

NJ Spotlight News.