Updated: Friday, 08 Apr 2011, 2:21 PM MDT
Published : Friday, 08 Apr 2011, 2:21 PM MDT
SANTA FE (AP) - Gov. Susana Martinez has rejected $128 million in higher taxes on businesses but agreed to unemployment benefit reductions.
The governor took the action Friday in signing legislation to shore up the unemployment compensation program. She used line-item veto powers to eliminate a provision in the bill that would have raised taxes on employers next year.
The governor's decision preserves nearly $80 million in cost savings and benefit reductions that can improve the finances of the unemployment fund.
Without any action, the program was projected to run out of money early next year.
The governor also vetoed a bill to establish a health insurance exchange for individuals and small businesses to buy health insurance.
Martinez signed a bill for restaurants to allow dogs on leashes in designated outdoor areas.
(The Associated Press plans to update and expand this report. Please check back for more.)