The Vermont Legislature has completed its work for the year, but Republican Gov. Phil Scott says he's going to veto the state budget because of the ongoing dispute about teacher health care benefits.
Democratic leaders in the House and Senate had been negotiating with Scott over his proposal to change the way health care is provided to Vermont's teachers and their families.
Scott wants to create a statewide contract that he says would save $26 million a year. Democrats say they can provide the same savings without disrupting local collective bargaining.
On Thursday lawmakers approved a $5.8 billion budget that would increase state spending by 1.3 percent without new taxes or fees.
Late Thursday Scott said he's disappointed.
A special veto session is expected June 21.