HARTFORD, Conn. (AP) - Connecticut Gov. Dannel P. Malloy offered Democrats another possible budget compromise on Monday, agreeing to scale back some of his earlier proposed cuts to hospitals and local education in hopes of garnering support as the legislative session deadline looms.
The Democratic governor’s latest $19.7 billion plan marked his third proposal to fix next fiscal year’s budget, which has been dogged by a deficit that’s now grown to about $960 million.
“I understand the urgency to reach an agreement,” Malloy wrote in a letter sent Monday to Democratic and Republican legislative leaders. “This proposal makes great strides to find compromise with both Democrat and Republican plans while still maintaining the key priorities I’ve stressed throughout this session and especially in recent days.”
Malloy said his latest plan doesn’t increase taxes or cover operating costs with borrowing, two of his top priorities. Also, it increases local education funding beyond Malloy’s last budget plan, not leaving any municipality with zero funding under the Education Cost Sharing grant.
The latest proposal delays transfers of sales tax revenues to both his planned transportation overhaul and the Democrats’ proposed local property tax relief initiative.
Malloy and the legislature’s majority Democrats have been at odds for weeks over how to solve the deficit in the fiscal that begins July 1 and make lasting changes to address future projected budget gaps.
Senate President Martin Looney, D-New Haven, said Malloy’s plan moves closer to what the Democrats have proposed, which he called some progress. But he said a gap still remains between the governor’s and the Democrats’ proposals. He said lawmakers planned to meet with Malloy’s budget staff on Monday night to see whether there’s a chance “to work out a deal that we can recommend to our members and that the governor will sign” into law.
“We’re willing to make a last-ditch effort to get that done within the framework of the session,” Looney said.
This year’s regular legislative session is scheduled to adjourn at midnight Wednesday. A special session is likely if there’s no budget vote.
Malloy’s latest plan received some early criticism.
The Connecticut Conference of Municipalities said the proposal still makes sizeable cuts in state aid to cities and towns, including eliminating funding for towns to provide transportation for students who attend private schools while still keeping the mandate in place.
“They are simply deep cuts in current state aid programs that only serve to shift the tax burden from the state onto residential and business property taxpayers across Connecticut,” said CCM Executive Director Joe DeLong.
Malloy’s latest proposal comes as his administration continues to lay off hundreds of state employees. Lori Pelletier, president of the Connecticut AFL-CIO, and other labor leaders have argued that the governor and lawmakers should impose higher taxes on the wealthy to help cover the deficit.
“Governor Malloy’s new budget proposal is nothing more than putting lipstick on a pig,” Pelletier said. “It’s still a pig.”
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