Governor Sununu says his current goals for the budget have less to do with how money might get spent than with ensuring the spending levels are sustainable under the state's current tax structure.
"Pretty much all the funding initiatives I wanted to go forward with, I'm willing to let them take that off the table, that's fine.
But my responsibility is to make sure we don't put ourselves in a financial hole. Their budget would do that."
Democrats say their spending plan, which rolled back a round of business tax cuts that took effect in January, meets crucial needs and is balanced.
They say Sununu's veto was irresponsible; Sununu says his focus is on settling differences as soon as possible.
"As far as I know the House Speaker is on vacation in Greece. So anytime the other side wants to come back in and open the door to renegotiate, I'm here waiting."
In the meantime, the state is operating under a 90-day temporary budget funding the state at current levels.
