DES MOINES - Gov. Chet Culver said Wednesday he will veto an expansion of collective bargaining rights for public employee unions, a crushing blow to the legislators and labor leaders who hoped he would sign the measure."It is not in the best interests of the taxpayers of Iowa to let this legislation become law," Culver said at a Statehouse news conference.

He also announced he will veto part of a budget bill that would have given pay raises to top elected officials, including the governor.

The collective bargaining veto puts Culver at odds with fellow Democrats, including the top leaders in the House and Senate. He also risks alienating organized labor, a key constituency for the party.

Democratic legislative leaders issued a joint statement saying they are "incredibly disappointed."

Linda Nelson, president of the Iowa State Education Association, the state's largest teachers' union, said she feels let down by Culver.

"He missed a great opportunity to recognize educators as true professionals and full partners in educational decision making," she said in a statement.

Culver said the bill is deeply flawed.

"It is vaguely written, with the potential for far-reaching, unintended consequences that could obligate citizens of Iowa for substantial new public expenditures," he said.

The bill, Senate File 2645, would have expanded the scope of topics that can be part of contract negotiations for public-employee unions.

Unions could have insisted that the negotiations include items like uniforms, class sizes or other conditions of employment. Under current law, public employers can insist that negotiations only cover salary or benefits.

Union officials said the bill would have been a minor change that has worked in the 27 other states where similar rules are in place. Public employers - such as school districts and city governments - said the bill would have been a major change that would lead to big increases in labor costs.

Republican leaders applauded the veto.

"Culver standing up to his own party illustrates how truly awful this legislation was and how out of touch the House Democrats were with Iowans," said House Minority Leader Christopher Rants, R-Sioux City.

Senate Minority Leader Ron Wieck, R-Sioux City, said the veto is good for just about everyone.

"The true winners today are the Iowa taxpayers," he said.

The bill surfaced in late March when House Democrats added the most controversial elements to an otherwise non-controversial bill.

Legislative Democrats hoped to pass the bill in the House in one day and pass it in the Senate the following day, but Republicans used stall tactics to draw the debate out for several more days.

On the salary legislation, Culver said he didn't want to give himself a pay raise at a time of economic uncertainty.

"I believe it's wrong to say to the people of Iowa that you have to tighten your belts, while elected officials don't," he said.

The governor's annual salary would have risen from $130,000 to $142,570. Four other top officials - the lieutenant governor, auditor of state, secretary of state and treasurer of state - would go from

$103,212 each to $127,530 each. The attorney general would go from $123,926 to $137,330.

Culver is using his line-item veto power to delete the salaries from a larger budget bill. He said he will approve several other items in the bill, including changes to rules for certain local option sales taxes.

Under the new rules, local governments will be able to change the purpose of the tax without needing voter approval. The bill says the change can only be done if the tax is being shifted for use on urban renewal projects.