Paterson's City Council has voted down a state of emergency resolution aimed at seeking additional state aid to curb street violence.
Tuesday's 6-2 vote followed comments from Gov. Chris Christie that the northern New Jersey city wasn't managing its finances. Officials may request transitional aid.
Paterson receives $21 million from the state.
The city had more than 100 shootings last year when it laid off 125 police officers.
Paterson drew criticism after it paid overtime to Mayor Jeffery Jones and other salaried officials for their work responding to Tropical Storm Irene last year.