TRENTON, N.J. (AP) — Democratic lawmakers are pushing legislation that would remove a 2 percent cap on pay raises for police and firefighter unions in arbitration cases, allowing increases of up to 3 percent when it can be shown that higher health premiums or job reductions have produced savings.

Democrats say the bill strikes a balance between restraining property tax increases and fairly compensating police and firefighters. Republicans say it would effectively kill the 2 percent cap and nullify the 2010 law, putting more pressure on municipal finances and property taxes.

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