lawmakers seem close to a compromise on the state film subsidy that could lead to agreement on the state budget - stuart dyson is live at the capitol with this evening's developments. details on the movie-making rebates still being hammered out right now - this is at the heart of the standoff between the republican governor and democrats who hold the majority in the legislature. the governor wants to slash the rebates from 25 cents to fifteen cents on every dollar spent making movies and tv shows here - but lawmakers are looking at other ys of limiting the millions the state pays back to the film companies. governor martinez kicked the door open yesterday to considering other options - that's what's going on now. lawmakers in the powerful house and senate finance committees warn their colleagues and the taxpayers - you are not going to like the budget no matter what. " the budget is not gonna be appealing virtually to everyone in the state of new mexico - because we are short on funds - we are trying to make adjustments and get spending under control - that has to happen." " well the budget is ugly - i don't care how you do it - the budget's not gonna be pretty no matter who or what that we put into it - there's gonna be cuts." it'll be the third consecutive money-slashing budget in the great recession - and this year - with susana martinez at the helm - there will be no tax increases. the governor does have more on her agenda than re-working the film rebates - she wants action on her bills to stop drivers licenses for illegal immigrants - to stop social promotion in the schools - to grade schools a through f - and many more - those bills also playing a big role in negotiations with lawmakers