Gov. Jim Douglas has signed into law a budget "companion bill" passed during last week's special session, despite his concerns that parts of it are unconstitutional.

The bill was passed during the special legislative session on June 3, after lawmakers overrode the governor's veto of the main budget bill a day earlier.

Douglas says he likes the bill's provisions calling for a sales tax holiday, and restoring a capital gains tax break for farmers, foresters and seniors. He also likes that it boosted funding for scholarships, job training and the Vermont Telecommunications Authority.

But he says it improperly gives a legislative committee too much authority over state job cuts and an early retirement program for state workers.