The governor's office said Gov. Dannel Malloy proposed his third budget on Monday as he works the reduce widening a deficit that's already sparked several waves of layoffs.
Malloy's latest budget cuts transportation funding but restore funding to hospitals and education. So far there have been six proposed budget plans.
This comes after an impasse over the weekend, where Malloy could not reach a deal with Democrats.
The state House of Representatives and Senate went into session Monday afternoon. Lawmakers said there are plenty of last-minute bills, but the budget is the most pressing.
The state is looking at a nearly $1 billion shortfall next year.
As of late last week, 546 layoff notices were issued to employees in a variety of departments. Malloy has said the state workforce could be reduced by 2,000.
Lawmakers said there have been many versions of the budget.
Last week, Democrats said they had a plan. However, Malloy shot it down for having "too many gimmicks" like one-time revenues.
House Speaker Brendan Sharkey has been at odds with the governor, although he said Malloy has now agreed to some concessions.
"This is part of what it means to actually lead and set priorities and negotiate," Sharkey said.
There are a number of bills that need to be voted on.
One of them passed the Senate late Monday afternoon, which is a controversial restraining order bill that supporters said would protect victims of domestic violence.
The bill would take guns away from those who are served a temporary restraining order. Twenty other states including Texas have similar laws.
Gun rights groups have attacked the bill because they see it was as an infringement on their rights saying "individuals who may be served with an order of this type do not even have to be charged with any crime, let alone convicted of wrong-doing"
"I think it's a reasonable step, on everything I know about domestic violence. We here in the General Assembly uphold the Constitution, but it doesn't mean that when situations arise, that we should address them," said Democratic State Senator Terry Gerrantana.
The governor plans to sign this bill.
Eyewitness News was told that on Friday, Malloy even walked away from discussions.
Malloy's latest budget, while restoring previously cut funding to hospitals and education, targets transportation. He also said he's willing to adopt some Republican proposals like spending cuts and structural changes.
"When the governor says he likes some of our ideas...he certainly liked mandatory outing on labor contracts, he liked that bill and put it in several years ago, he's open to talking about a spending cap but these are only a couple things," said Republican Minority Leader Themis Klarides.
The governor and lawmakers have also been trying to figure out how to close a $256 million gap for this fiscal year. The fiscal year ends in two days.
Some lawmakers are optimistic that a special session can be avoided. Sessions can cost up to $11,000 a day, which is money the state can't afford.
To read the full budget proposal, click here.
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