HARTFORD — Democratic legislative leaders said
Tuesday they’re hopeful that new proposals from their side will end the long-running
budget stalemate with Gov. M. Jodi Rell.
Senate President Pro Tem Donald E. Williams Jr. of Brooklyn and House Speaker
Christopher G. Donovan of Meriden also said they’re prepared to meet daily with
Rell, a Republican, until agreement on a new spending
and taxation plan is reached.
Despite the Democrats’ optimism, Rell’s office was quiet Tuesday about the state of
negotiations. Connecticut is one of just two states in the nation, along with
Pennsylvania, that has been without a budget since the fiscal year began July
1.
“We’ve given some options to the governor and she’s looking at them seriously,”
Donovan said following a 90-minute meeting in Rell’s
Capitol office.
“The difference between us is not as great as
it was a month ago,” Williams added.
Neither lawmaker would offer specifics on the new proposals,
but the primary differences between the governor and the legislature’s
Democratic majority focus on two areas: taxes and health care.
Democrats have proposed nearly $2 billion to be raised this fiscal year and
next combined from tax and fee increases or other tax policy changes. Most of
this revenue would come from wealthy households through higher income tax
rates, and through a 30 percent surcharge on the estate tax.
Rell has countered with $690 million in new tax and
fee revenue over the two years. The governor opposes a more graduated income
tax that would levy higher rates on the wealthy.
Rell’s budget proposal would avert much of the tax
hikes Democrats are seeking by cutting social services and health care for the
poor and cutting grants to public colleges and universities.
These two points have dominated the talks since Rell
unveiled her first budget in February, and Donovan said it shouldn’t come as a
big surprise to anyone.
“There are some real differences” in philosophy, he said, adding that Democrats
fear Rell’s budget would harm Connecticut’s neediest
residents at the worst time.
But Williams added that it’s time for both sides to weigh their political
beliefs against the practical need for the state to adopt a budget.
Towns already have seen road and bridge repair grants delayed, and unless a
state plan is adopted soon, property tax relief and education grants due this
fall could be reduced or delayed.
State Treasurer Denise L. Nappier also repeatedly has
warned that the state’s reputation on Wall Street is in jeopardy and that
continued gridlock could result in a downgrading of Connecticut’s bond rating,
which would increase borrowing costs. That could boost the state’s interest
charges by as much as $80 million this fiscal year, she wrote to Rell and top lawmakers last week.
“We want all of the parties in the negotiations to feel a sense of urgency,”
Williams said, adding that talks should continue on weekends as well as weekdays
until a deal is struck. “We want everybody to feel the pressure.”