On the state's 109th day without a state budget, news of a financial report jeopardizing the financial future of cities and towns is not sitting well with officials.
Negotiations between Democrats and Republicans ran late into the night on Monday and picked up again on Tuesday morning. Now lawmakers have set a deadline.
On Tuesday evening, lawmakers set a deadline for announcing whether they're on the verge of reaching a tentative, bipartisan state budget agreement. They said negotiations aren't expected to cease if a deal isn't announced on Wednesday at 2:30 p.m.
Gov. Dannel Malloy urged lawmakers on Tuesday to come up with a plan that can pass after he crafted his own fourth full budget. He released it on Monday and called it a "bare bones" proposal.
He said he hoped it would give lawmakers a push to strike a deal soon.
Malloy's proposal includes $150 million in additional spending cuts to state agencies and social services and $20 million more to cities and towns.
The plan also includes a spending cap.
On Tuesday, Malloy said he had an analysis done, which he said shows what the GOP wants to do with pensions are illegal and the analysis shows the savings would only be about $2 million in the first year, not $300 million.
Malloy went as far as calling the GOP pension plan a scheme, a castle made of sand without cement.
"It would be very difficult to support a budget that affected retirees and vested employees. I have been very consistent on that --- it caused me to have discussions around the building how else would you do this ---I've had discussions with people who voted for the GOP budget --who indicated they never would have voted for this budget if they knew it was to take away vested benefits," Malloy said.
Leaders on both sides of the aisle have been meeting for days in hopes of reaching a bipartisan agreement. They said they know it's crucial, given the partisan makeup of the legislature.
They said they hope to present a proposal for a vote next week.
This also comes as 26 cities and towns face a review by Moody's Investor Service for a credit downgrading, according to a report.
"The big deal for a municipality that wishes to borrow money - it's going to cost them more," said economist David Cadden. "That will definitely mean an increase in local taxes and projects like. Building new schools or construction projects will have to be eliminated."
Meanwhile, Connecticut continues to run on Malloy's executive order.
Stay with Channel 3 for continuing coverage of the state budget crisis.
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