HARTFORD (AP) — Connecticut's largest teachers union and four municipalities are dropping their lawsuit against the state, now that a budget is in place.

The Connecticut Education Association, the city of Torrington and towns of Brooklyn, Stratford and Plainfield, had sought an injunction last month to stop Democratic Gov. Dannel P. Malloy from using his limited executive spending authority to cut $557 million from the majority of Connecticut school districts.

CEA President Sheila Cohen says the two-year, $41.3 billion bipartisan budget Malloy signed into law restores millions of dollars in education funding to cities and towns. She also says the plan includes a new commission that will help secure equitable distribution of state aid in the future.

CEA says the new budget restores 95 percent of school funding to the majority of districts.