Martinez Sticks With Veto Of Unemployment Bill Despite Business Group Objections

New Mexico – A spokesman for Gov. Susana Martinez says she's sticking with a plan to veto a bill raising employer taxes and isn't reconsidering despite business groups urging her to sign the legislation to shore up the unemployment compensation program.

The Legislature passed a bill that will raise taxes on businesses by $128 million next year and reduce benefits to prevent the unemployment trust fund from running out of money. If nothing is done, the fund is projected to become insolvent in March 2012.

Martinez spokesman Scott Darnell said Thursday the proposed tax increase is premature.

The Greater Albuquerque Chamber of Commerce and the Association of Commerce and Industry say businesses could be hit with a larger tax increase if the unemployment fund becomes insolvent.

Copyright 2011 The Associated Press.