BOSTON, May 16 (UPI) -- Connecticut Republican Gov. John Rowland was poised Friday to veto a $13.7 billion budget approved by the Democratic-controlled Legislature because it depends too heavily on increased taxes and not enough on spending cuts.
"I have repeatedly said that I will not endorse a budget package that raises taxes, yet fails to adequately reduce state spending," Rowland said Thursday before the Senate voted to approve the plan passed on Wednesday by the House.
"Whenever the bill arrives on my desk, I will veto," he said.
The Democrat plan would increase taxes by some $700 million, raising the income tax on high-income individuals and increasing corporate, sales and estate taxes.
Republicans favor Rowland's own proposal that calls for tax hikes totaling $190 million and reduces spending by consolidating programs and agencies.
The veto, which could come late Friday, would set the stage for negotiations on a compromise plan that cuts more spending and taxes less.
Democratic leaders and the Republican governor have to reach a deal before the legislative session ends June 4.
In Rhode Island, Gov. Don Carcieri's budget advisers were scrambling to make up for an unexpected shortfall in income from video slot machines.
Overall, the state is expected to get at least $7.1 million less than anticipated from the lottery this year, and at least $13.9 million less the following year, the Providence Journal reported Friday.
It had been estimated in February that the installation of 1,825 additional video-slot machines at Lincoln Park and Newport Grand Jai Alai would help raise the state's share from $148.9 million last year to $176 million this year, and $220 million during the new fiscal year that begins July 1.
This week, however, the video-gambling estimates were lowered to $170 million this year and $211.5 million next year.
Even with the lowered projections, revenue estimators said overall growth in lottery payments to the state from its daily numbers games, keno, instant tickets, Powerball and video gambling would be about 17.5 percent next year.
In Massachusetts, the nonpartisan Massachusetts Taxpayers Foundation said the budgets proposed by Republican Gov. Mitt Romney and the Democratic-controlled House go a long way toward closing a $3 billion budget deficit, but neither fully closes the gap.
The Senate budget proposal is to be debated and approved later this month for the fiscal year that begins July 1.
