Gov. Tim Pawlenty has vetoed a tax bill approved by Minnesota Democrats in the final minutes of the legislative session.

The bill would have raised $1 billion by raising taxes on couples making more than $250,000, alcohol drinkers and credit card companies charging high interest rates.

It would also have delayed $1.7 billion in payments to schools, erasing a two-year deficit.

Democrats are claiming that they balanced the budget, although a veto was predictable.

Pawlenty says his opposition to tax increases is longstanding and well-known.