BOSTON, April 14 (UPI) -- Massachusetts lawmakers begin debate this week on a proposed $23 billion budget for fiscal 2004, but the final package is expected to depend more on severe cuts rather than the governor's plan to reorganize state government.
In New Hampshire, a $9 billion proposed budget that includes an increase in the tobacco tax is being threatened with a gubernatorial veto.
Connecticut lawmakers are struggling to come up with ways to balance a budget for the upcoming fiscal year as an estimated deficit has increased to $1 billion.
And in Maine, legislators are expected to approve this week a $20 million supplemental budget to erase an income shortfall.
Massachusetts is facing a $3 billion deficit for the fiscal year beginning July 1, and the Democratic-controlled Legislature is considering deep cuts in local aid to cities and towns and the state's Medicaid program.
Republican Gov. Mitt Romney, who campaigned on a platform to restructure state government, is likely to see most of his proposals rejected by lawmakers more inclined to preserve patronage havens.
Legislative leaders contend the governor's proposal to use savings from reorganizations, new fees and the sale of state property don't go far enough to close the budget deficit.
Romney aides argue the Legislature's call for deeper program cuts may be designed to increase pressure to hike taxes, but House and Senate leaders deny higher taxes are on the table.
Faced with more cuts in local aid, city officials around the state have been urging higher taxes. The Massachusetts Teachers Association, warning cuts mean teacher layoffs, is broadcasting an ad calling for increased taxes.
The New Hampshire House later this week will vote on a proposed two-year budget 11 percent higher than the present budget.
The proposal would increase the 52 cents per pack tobacco tax by 39 cents a pack to raise $56 million to help pay for an estimated $172.5 million deficit for the fiscal period ending July 1.
The balance would come from the state's rainy-day fund, cuts in spending and health-care transition funds, according to the Union Leader of Manchester.
Republican Gov. Craig Benson has vowed to veto any proposal that raises taxes.
Maine legislators this week take up a $20 million supplemental budget proposed to offset a recently discovered revenue shortfall, the Kennebec Journal reported.
Democratic Gov. John Baldacci's administration said it expects the proposed supplemental budget combination of long-term borrowing and spending adjustments will be enacted this week. The supplemental budget is needed to ensure that the current state finance plan is balanced when the fiscal year ends on June 30.
The estimated budget deficit in Connecticut for fiscal 2004, which begins July 1, has grown from $900 million to $1 billion.
The Legislature was expected to revisit proposals to increase the state income tax again, as well as a higher tax on millionaires.
Any budget proposal was likely to include a mix of new taxes and reduced spending, similar to the deficit reduction plan passed in February to close a $650 million deficit in the current fiscal year. That plan increased the state income tax from 4.5 percent to 5 percent.
Also, state worker unions were being urged to sit down the Republican Gov. John Rowland to negotiate wage concessions designed to save up to $500 million.
