SANTA FE (KRQE) - Gov. Susana Martinez is threatening to veto the budget that Democrats and Republicans unanimously passed in the state Senate.
The $5.9 billion budget is up almost $250 million from the current budget year.
It calls for 1 percent pay raises for state workers and teachers.
If the House signs off on it, the governor says she'll veto it.
She wants more corporate tax breaks, and instead of across-the-board pay raises advocates merit-based raises for teachers as well as millions to fund her ideas for education reform.
If lawmakers and the governor can't agree on a budget by the time the Legislature adjourns at noon on Saturday, a special session will be needed to fund the state government after June 30.