Connecticut remains the only state without a budget. Connecticut went into Tuesday on its 88th straight day without a state budget.
Gov. Dannel Malloy held a leadership meeting with Republicans and the Democrats on Tuesday. Last week, the governor meet with both sides individually.
Lawmakers have until Oct. 1 to get an agreement in place.
For the first time since the Republican budget passed earlier this month, Malloy invited all the leaders to his capitol office. However, the governor said he would veto it on the grounds that it's unbalanced.
There may be a agreement on a hospital tax, but there's confusion on when it has to be done.
"We are meeting in general on budget issues, but clearly this is the imminent concern is October first the drop dead date," Minority Leader Themis Klarides said.
"We were all under the assumption we would have to act by Friday in order to save the hospital deal," Senate President Martin Looney said.
Both parties have agreed to increasing the hospital tax from 6 percent to 8 percent. The hospitals would get more reimbursement from the federal government. The federal government is looking for an Oct. 1 deadline.
The hospital tax may be the only tax they can agree on. In the meantime, the damage of not having a state budget is being felt on programs for the disabled as well as cities and towns. All are expecting money in early October from the state.
"There's reason to believe that there aren't too many communities that are challenged immediately. Absolutely challenge is coming," Malloy said. "Look I thought we should have had a budget on June 30th, first week of July. I have been having these meetings for a long time."
The Republican budget also includes some sharp funding cuts to schools like the University of Connecticut, which is the reason students and staff have been holding rallies over the past few weeks.
School officials, including UConn president Susan Herbst, said that budget could result in the closure of UConn campuses. Students also held a rally at the State Capitol last week.
The GOP said their budget includes $244 million in cuts. Republicans said that while the cuts are painful, the alternative would be cutting programs for the elderly and the disabled.
Stay tuned to Channel 3 for updates on the state budget situation.
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