Lame-duck Democratic governors and their Republican successors in the Midwest are clashing over public workers' pay and benefits, in a preview of state budget battles across the U.S. next year.

Departing Democratic leaders in several states have tried to get new two-year contracts for state-employee unions approved before they leave office. The incoming Republicans have said the deals are too generous and would tie their hands as they craft budgets.

In Wisconsin, lawmakers called a rare special session this week but fell just short of the votes needed to approve contracts with public-worker unions that departing Democratic Gov. Jim Doyle accepted last month.

Gov.-elect Scott Walker, a Republican, has sharply criticized the deals and threatened to curtail workers' bargaining rights. He wants state workers to contribute more toward their pensions and health-care premiums.

"If he wants to have a labor war, we're up for it," said Marty Beil, executive director of the Wisconsin State Employees Union, which represents 22,000 workers.