Oklahoma Republican Gov. Mary Fallin has vetoed a bill that would have raided cash reserves and cut deeper into agency funding to balance the state budget.
That sets up a showdown with her own party in the legislature.
Fallin vetoed the measure Friday, hours after the state Senate's final approval. She had tried unsuccessfully to persuade GOP House members to increase taxes to keep government running.
State revenue has shrunk by hundreds of millions of dollars in recent years because of less cash from oil and natural gas production and the effects of income tax cuts, exemptions and deductions.
The House and Senate ended an eight-week special session Friday that convened to plug a $215 million budget hole. Fallin could call another special session to try again for a fix.
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