HARTFORD, Conn. (AP) - A last-ditch plan by Democratic lawmakers in Connecticut to pass a budget before the fiscal year ends on June 30 appears to be dead on arrival.
Even though the majority Democrats whittled their proposed tax increases from $3.3 billion to $2.8 billion, Republican Gov. M. Jodi Rell's budget chief said that amount is ``not in the same solar system'' of what Rell might be willing to accept.
``The governor is not going to allow a $2.8 billion tax increase in this economic climate,'' Robert Genuario said. ``We've got a long way to go.''
Lawmakers returned to the Capitol in special session on Friday to finish work from the regular legislative session that ended June 3. That included appropriating $11 million in federal stimulus money to fund a summer youth employment program that serves thousands of teens, and modifying procedures for teacher certification.
But throughout the day, the Democrats were being briefed on the details of the new Democratic budget that could see a vote sometime next week, days before the fiscal year ends June 30.
There have been no bipartisan budget talks since the General Assembly adjourned its regular session. Rell and Democrats have clashed for months over how to cover a budget deficit estimated to be as much as $8.7 billion over the next two years.
If there's no budget in place by June 30, Rell will likely have to issue executive orders to decide which of the state's bills get paid.
Senate President Donald E. Williams Jr., D-Brooklyn, said he believes the Democrats' new plan will help spark stalled negotiations because the two-year, $37.9 billion plan cuts spending by $3.5 billion and rolls back earlier proposed tax increases.
``I think that the basic building blocks are in place to get an agreement with the governor. I think that she should come back to the negotiating room,'' he said.
Highlights of the Democrats' latest proposal call for:
_ Raising income tax rates on higher-income earners. Democrats said they would start with joint filers earning $500,000 or more. They did not provide figures for single filers.
_ Scaling back a proposed 30 percent surcharge on the corporate income tax.
_ Scrapping plans to eliminate sales tax exemptions for some products and services.
_ Raising the cigarette tax.
_ Imposing a 30 percent surcharge on taxable gifts and estates worth more than $2 million.
Democrats also said they've found hundreds of millions of dollars in additional cuts to help roll back some of their earlier tax increases. Williams said this new budget reduces spending about 5 percent, across all agencies.
But of the $3.5 billion in overall reductions spanning two years, about $980 million come from unspecified state agency savings. Much of those savings are supposed to come from yet-to-be-announced plans in fiscal year 2011 to streamline state government. Genuario said Rell has proposed about $780 million in unspecified cuts.
Meanwhile, during Friday's session, Republican legislators said a bill to cover cost overruns in various agencies this fiscal year would add $29 million to the current fiscal year's deficit, estimated to be about $1 billion. Much of it will likely be covered by borrowing.
The bill approved by lawmakers provides $22.2 million to the financially struggling University of Connecticut Health Center in Farmington and $70 million for Medicaid, including the HUSKY health insurance program for needy children.
``We have responsibilities we have to uphold and we're doing so by doing this,'' Rep. John Geragosian, D-New Britain, co-chairman of the budget-writing committee, said of the legislation.
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