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She didn't use the V word, but Gov. Bev Perdue just sent out the following to reporters:

"I have spoken with the President Pro Tem and the Speaker today and told them that I would not support a budget with an income tax increase on North Carolina’s working families. I reemphasized the need to protect public schools."

Update: House and Senate budget negotiators are preparing to re-open the tax package this afternoon, responding to what they perceive as a veto threat from Gov. Bev Perdue.

"I think she feels strongly about this," said Rep. Hugh Holliman, the House majority leader and a finance negotiator.

He said that the governor wanted no income surcharge on individuals making less than $150,000 per year or married couples making less than $250,000. He also said she has demanded the state raise $1.2 billion in new revenue - versus the $990 million agreed to earlier this week. That extra $200 million would go toward education.

Holliman said both of those items are "on the table."

Update: Chrissy Pearson, a spokesman for Perdue, said that the governor's office is not using the word "veto" in relation to governor's statement. 

"The governor feels there is a lot of room for negotiation to be had before she gets to that point," Pearson said. "But she has made her feelings clear."

I'll leave it to you to read between the lines.

Update: Even though re-opening finance negotiations means the fate of the budget is now unsettled, some lawmakers are happy Perdue roiled the waters.

Rep. Pricey Harrison, a Greensboro Democrat, described herself as “dismayed” over the tax agreement forged earlier this week.

“Not closing the corporate loophole is a big problem for me,” said Harrison. The state could get some extra money if it required something called “combined reporting,” something that would put a stop to shell games big companies play that lets them write-off rent they pay to their own subsidiaries.

She also said the beer and cigarette taxes were problematic for her constituents as well.

When told of the governor’s veto threat, Harrison said, “I’m actually glad to hear it.”