Gov. Dannel P. Malloy says he has a plan to further reduce Connecticut's state employee workforce by an additional 500 people.
The Democrat said Wednesday those positions will be eliminated through attrition by June 30. Critical positions, such as transportation engineers, will still be funded.
"These are tough negotiations and what we are looking for are ways to save money," Malloy said.
It's changes to the pension system could cause a rift with state unions, and Malloy wants to drag out payments over a longer period of time.
The governor also unveiled some proposed business-related tax changes to make Connecticut more competitive.
"Having someone with tens of thousands in employees be able to write off all of the profits they made in Connecticut is not fair to consumers or taxpayers in Connecticut," he said.
Business leaders have been vocal about increased taxes, saying they are willing to work with the governor on new ideas.
"We have been saying something dramatic is needed to turn the state around. We would like something to happen yesterday rather than tomorrow," said Bonnie Stewart of the CBIA.
Malloy made the announcements during a presentation to leaders of state agencies about the state's budgetary situation. It comes days after Malloy met with Democratic and Republican lawmakers about how to address a nagging budget shortfall.
Ben Barnes, Malloy's budget director, said the state workforce is down about 1,000 positions since Jan. 1, 2011. Excluding higher education employees, there are more than 28,500 full-time workers in the state's executive branch.
Copyright 2015 WFSB (Meredith Corporation). The Associated Press contributed to this report. All rights reserved.