The New Mexico Legislature adjourned late last week after passing a $5.9 billion budget for fiscal 2014 that provides for the first across-the-board pay raise for state employees since 2008.
Gov. Susana Martinez said she may veto the budget bill, which would force a special session before the next fiscal year begins July 1.
The budget includes $33 million for a 1% pay increase for state workers and educators, and a 4% raise for state police officers. The spending plan is $14 million more than Martinez requested and about 4% more than in fiscal 2013.
Martinez criticized the Legislature's budget because it did not include suggested cuts in the corporate income tax or her request for an $11 million incentive merit program for teachers.
"I'm very disappointed in the lack of compromise by the other party and by the unbalanced approach to our state budget taken by many lawmakers," she said.
"While the Democrats want me to agree to pay increases for government employees and larger subsidies for Hollywood corporations, they have refused to pass meaningful education reforms to improve student achievement, and they have refused to lower taxes to make New Mexico more competitive to help businesses grow, and to create more jobs."
Martinez had asked lawmakers to lower the corporate income tax rate to 4.9% over several years from the current 7.6%.