SANTA FE — With the New Mexico judicial and executive branches at odds over a paid leave policy, it will be up to the state’s third branch of government — the Legislature — to take the next step.

A panel of retired judges appointed to hear the Supreme Court case decided Wednesday not to order a state budget agency to resume processing large leave payouts to departing judicial branch employees, as the judiciary had sought in a lawsuit.

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Dan Boyd covers state government and politics for the Journal in Santa Fe. Follow him on Twitter at @DanBoydNM or reach him via email at dboyd@abqjournal.com.