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Conn. budget deadline looms

BOSTON, June 2 (UPI) -- Time was running out this week for the Democratic-controlled Connecticut Legislature to come up with a budget acceptable to Republican Gov. John Rowland.

A House-Senate committee in Massachusetts, meanwhile, this week begins trying to devise a compromise budget for the coming fiscal year.

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With three days left in this legislative session, Rowland has been frustrated by stalled budget negotiations, the Hartford Courant reports.

Republican legislators have taken themselves out of budget talks because they refuse to discuss tax increases without first addressing program cuts, leaving the task of hammering out a budget up to the majority Democrats, the Courant said.

With the legislative session scheduled to end at midnight Wednesday, Rowland was hoping the Democrats would present a budget that depends far less on tax increases than the $13.7 billion Democratic plan he vetoed last month.

With the state facing a $650 million deficit, that Democratic proposal called for more than $700 million in tax increases.

Sine then, Democrats have said they reduced their tax package, but have provided no details, the Courant said.

Rowland said he and the Democrats are about $350 million to $400 million away from a budget compromise.

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To balance the budget, the governor has called for some $250 million in tax increases and program cuts that have been opposed by Democrats and special interest groups.

If a new budget is not reached by the end of the fiscal year June 30, a special session would be required.

In the Democratic-controlled Massachusetts Legislature, budget negotiators this week try to resolve differences in the proposals approved by the House and Senate.

The House spending plan calls for a $22.5 billion budget, with about $400 million in new and increased fees, while the Senate proposal would spend $22.7 billion and imposes some $500 in fees.

Both proposals present different ideas as to how to close a $3 billion budget deficit, with healthcare spending a major obstacle, but neither calls for new or increased taxes.

A completed budget is supposed to be submitted to Republican Gov. Mitt Romney by June 30.

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