Lawmakers gave final approval Tuesday to a nearly $6 billion budget plan, but Republican Gov. Susana Martinez warned she'll consider vetoing the proposal if the Legislature fails to agree on tax cuts.

Martinez issued her veto threat shortly before the budget cleared its last hurdle in the Legislature, which is rushing to wrap up its business before adjournment Thursday.

The governor will have until March 7 to sign or veto bills sent to her in the closing days of the session, but the budget is a critical piece of legislation for financing public schools and general government programs, ranging from courts and prisons to the state police and health care for the needy.

If Martinez rejects the entire spending measure -- rather than vetoing individual line item allocations of money -- lawmakers will have little choice but to return to work in a special session later in the year.

The budget allocates $5.6 billion in the fiscal year that starts July 1. It provides for a $220 million or 4 percent increase in spending. The bill doesn't spend all the revenues the state expects to collect next year, leaving nearly $37 million available for possible tax cuts.

"The piece missing is the tax reform. Why aren't they focusing now on tax initiatives that have been proposed so that we have that reform as part of the overall budget?" Martinez told reporters after she spoke at an event in the Capitol Rotunda.

The governor has proposed $55 million in tax cuts for veterans and businesses, including lifting the gross-receipts tax from certain business-to-business transactions for the construction industry and providing an income tax exemption for veterans' retirement pay.

The budget and two bills financing capital improvements are considered must-do financial measures for lawmakers during the session.

Martinez also raised objections to one of the capital outlay proposals -- a bill pending in the House that allocates $137 million for construction projects, including many in the home districts of legislators. Bonds backed by severance revenues will finance most of the projects.

Pending in the Senate is another capital improvement measure that provides $134 million for senior citizen projects, libraries, school bus replacement and construction projects at colleges and universities. Those are financed by general obligation bonds, which are backed by property taxes and require voter approval in November.

Sen. Carlos Cisneros, D-Questa, said lawmakers scaled back the general obligation bond package to ensure there will be no statewide property tax increase if the $134 million in bond financing is approved in the general elections. That's possible because the new bonds will replace outstanding bonds being paid off, ensuring that current tax levies can cover debt repayments on the $134 million.

The budget cleared its final hurdle in the Legislature on Tuesday when the House agreed on a voice vote to accept Senate changes to the spending blueprint. The Senate added about $5 million, including money for services to the developmentally disabled, domestic violence programs, payments to jurors and to cover possible budget shortfalls for some district attorneys.




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