>> I'M STEVE KOTCHKO.
WELCOME TO ANOTHER EDITION OF "ON THE RECORD."
FIRST A LOOK AT THIS WEEK'S STATE HEADLINES:
TAX INCREASES PROPOSED BY DEMOCRATS STOLE THE SPOTLIGHT LAST WEEK, BUT WHAT ABOUT THE STATE BUDGET PLAN THOSE HIKES ARE TIED TO?
WE'LL TAKE A CLOSER LOOK IN OUR NEWSMAKER SEGMENT, TALKING WITH TWO KEY MEMBERS OF THE LEGISLATURE'S APPROPRIATIONS COMMITTEE.
AFTER WEEKS OF ICY PARTISAN RHETORIC OVER THE STATE DEFICIT, ARE THERE SIGNS OF A SPRING THAW?
WE'LL DISCUSS THAT TOPIC IN OUR REPORTERS ROUNDTABLE.
TO SAVE CONNECTICUT DEFENSE JOBS, GOV. RELL AND THE CONNECTICUT CONGRESSIONAL DELEGATION GEAR UP TO FIGHT PROPOSED CUTS IN THE F-22 FIGHTER JET PROGRAM.
AND THE UCONN'S WOMEN'S BASKETBALL TEAM COMPLETES A PERFECT SEASON BY WINNING THE NATIONAL CHAMPIONSHIP.
THOSE ARE THE HEADLINES.
PLEASE STAY WITH US.
MY GUESTS THIS WEEK IN OUR "NEWSMAKER" SEGMENTS ARE REPRESENTATIVE JOHN GERAGOSIAN AND RANKING REPUBLICAN ON THAT PANEL REPRESENTATIVE CRAIG MINEN.
LET'S TALK ABOUT ARE THE BUDGET, GENTLEMEN.
LET ME ASK YOU FIRST, THE RESPONSE OF THE DEMOCRATIC MAJORITY IN THE LEGISLATURE ALWAYS COMES AFTER THE GOVERNOR DELIVERS HER BUDGET PROPOSAL WHICH SHE DID IN FEBRUARY.
SO I HAVE TO ASSUME THAT YOU FEEL EVEN IN THIS HEAVY DEFICIT YEAR THAT YOU'VE CRAFTED A BETTER PACKAGE THAN THE GOVERNOR, WHAT'S BETTER ABOUT THE GOVERNOR -- HE ABOUT YOUR PROGRAM THAN RELL'S?
>> FIRST OF ALL THE GOVERNOR GAVE US A BUDGET THAT WAS OUGHT OF BALANCE FROM DAY ONE F. WE PASS IT THE DAY AFTER SHE PRESENTED IT LEFT US A $3 BILLION HOLE.
AND ONLY BUDGET THAT IS BALANCED WE BELIEVE PROTECTS SERVICES THAT ARE IMPORTANT IN THE STATE OF CONNECTICUT.
THE RESIDENTS OF THE STATE OF CONNECTICUT.
IT'S NOT SET IN STONE BUT IT'S A GOOD BLUEPRINT HOW WE MOVE FORWARD.
>> DO YOU SHARE THAT YOU VIEW, MY GUESS IS YOU PROBABLY DON'T.
>> OH, I DON'T.
BUDGE SET BASED ON VERY SIGNIFICANT TAX INCREASE WITHOUT THAT LARGE TAX INCREASE THE BUDGET WOULD NOT BE IN BALANCE.
I THINK THERE'S BEEN A LOT OF CRITICISM ABOUT GOVERNOR'S BUDGET THAT IT WASN'T IN BALANCE I THINK IN FAIRNESS TO THE GOVERNOR IF WE PASS THE BUDGET TOMORROW IT WON'T BE IN BALANCE.
THIS TARGET IS SUCH A QUICK MOVING TARGET IT'S FALLING AWAY FROM US, I THINK EVERYONE ON LEGISLATURE WOULD AGREE THAT THE DEFICIT CONTINUE TO GROW, I THINK THE ESTIMATES NOW ARE SOMEWHERE BETWEEN 665 MILLION.
NOW BETWEEN JUNE 30.
THOSE DEFICITS ROLL OUT IN TO THE DIE ENYUM THAT WE'RE TALKING ABOUT IN THIS BUDGET PROCESS.
>> JOHN, THE ONE OF THE GOVERNOR'S HEAVY WRAPS SAYS IT'S FULL OF PHANTOM CUTS.
MERE PLACE HOLDERS THAT YOU'RE SAYING WE'RE CUTTING BUT NOT REALLY CUTTING, HOW DO YOU ANSWER THAT?
>> FIRST OF ALL, OUR BUDGE SET $52 MILLION BELOW THE GOVERNOR ABOUT 112 BELOW THE GOVERNOR'S SECOND YEAR.
OUR CUTS ARE REAL.
OUR CUTS ARE DEEP.
WE PROPOSE CUTTING 25% OF THE MANAGERIAL POSITIONS IN THE DEPARTMENT OF CHILDREN AND FAMILY, PROPOSE A LARGE CUT TO THE DEPARTMENT OF PUBLIC HEALTH.
BUT ALSO EMPOWER THE AGENCIES TO MAKE CUTS OF THEIR OWN.
GOVERNOR RELL BROUGHT IN DAVID OSBORN, A NATIONALLY KNOWN GURU ON STATE GOVERNMENT EFFICIENCY, WE HAVE SPOKEN WITH THEM, TOO.
THIS IS ALONG HIS MODEL.
NOT GOING IN AS LEGISLATURE IN MICRO MANAGER LINE BY LINE AGENCY BUDGET.
FIND ME SOME SAVINGS AND YOU DO IT IN WAY THAT YOU KNOW BEST.
WE DO THAT IN THE AREA OF CORRECTIONS WHERE COMMISSIONER LANCE IS DOING A WONDERFUL JOB HAS SMART APPROACH TO THE CORRECTION SYSTEM THAT WE ALLOW THE CORRECTIONS COMMISSIONER TO USE HER EXPERTISE AND PEOPLE THAT WORK FOR HER TO ACTUALLY SAVE, NOT PHANTOM SAVINGS.
>> YOU DON'T BUY IT?
>> I DON'T BUY IT.
THE GOVERNOR USES A LOT OF -- HAS A LOT OF UNANSWERED QUESTIONS IN HER BUDGET.
THIS HUGE MIDDLE COLLEGE SYSTEM WHICH MIGHT HAVE BEEN A GOOD IDEA BUT IT WAS CLEARLY NOT THOUGHT OUT.
SO WE HAD TO SCRAP THAT.
THERE ARE MANY OTHERS OF THAT.
>> DO YOU AGREE WITH THE GOVERNOR THAT THIS BUDGET THAT THE DEMOCRATS PROPOSE HAS PHANTOM CUTS IN IT?
>> CERTAINLY VERY CREATIVE ACCOUNTING PRACTICES IN IT.
BUT IN ADDITION TO THAT, I UNDERSTAND WHAT JOHN IS SAYING WITH REGARD TO ALLOWING THE COMMISSIONERS IN THESE AGENCIES TO PICK AND CHOOSE WHERE THE CUTS COME FROM AND HOW WE CAN ACHIEVE EFFICIENCIES.
BUT BASED ON WHAT I'VE SEEN THERE'S NEVER BEEN REAL DIRECTION.
THE AMOUNT OF DEFICIT THAT WE'RE TAKING ABOUT IS $4 BILLION PER YEAR.
UNLESS WE GIVE SOMEONE A TARGET THERE'S NO REASON FOR ME TO BELIEVE THAT ANYONE IS GOING TO ACHIEVE A NUMBER THAT'S EVEN CLOSE TO THAT.
I THINK IT WOULD HAVE BEEN BETTER HAD THEY SAID TO THESE DIFFERENT AGENCIES, WE WANT TO YOU CUT 10%, WE WANT TO YOU SHAVE THIS MANY EMPLOYEES.
WE WANT YOU TO DO THIS, WE WANT TO YOU REORGANIZE IN THIS MODEL THEN I WOULD HAVE REASON TO BELIEVE AT THE END OF THE BIENNIUM WE MIGHT BE ABLE TO ACHIEVE THAT.
IT'S PRETTY MUCH BUSINESS AS USUAL.
>> THE GOVERNOR ALSO PROPOSED, SHE SAID THIS WAS THE YEAR TO GET RID OF WHAT SHE CALLED THE BLOAT OF STATE GOVERNMENT.
SHE SAID THIS DEMOCRATIC BUDGET PLAN DOESN'T DO IT.
IN OTHER WORDS, THERE SHOULD BE MERGERS, THERE SHOULD BE CONSOLIDATIONS, THERE SHOULD BE THE ELIMINATIONS OF BOARDS, COMMISSIONS AND AGENCIES.
DO YOU AGREE WITH THAT AND WHY DO YOU THINK THE DEMOCRATS DIDN'T WANT TO GO THAT WAY?
>> WE HAVE ABOUT 57,000 STATE EMPLOYEES CURRENTLY EMPLOYED IN THE STATE OF CONNECTICUT.
AND I THINK IF I WANT TO READ IN TO WHAT I THINK SOME ARE READING IN TO THE FRAMEWORK OF THE CBEC AGREEMENT WITH STATE OF CONNECTICUT, MY GUESS IS THERE'S SOME FLEXIBILITY IN THAT AGREEMENT FOR US TO MAKE LARGER ADJUSTMENTS THAN WERE MADE IN THE DEMOCRATS BUDGET PROPOSAL.
I DO BELIEVE THAT AS DIFFICULT AS IT IS, EVERY BUSINESS IN THE STATE OF CONNECTICUT HAS MADE VERY TOUGH DECISIONS OVER THE LAST YEAR TO REDUCE THEIR FULL TIME EQUIVALENT, EMPLOYEES, SHAVE BENEFITS COSTS, DO ALL THE THINGS THAT ALLOW THEM TO CONTINUE ON IN TO THE FUTURE.
WITH RESPECT TO THE APPROPRIATIONS BUDGET.
THERE HAS BEEN SOME JOB ELIMINATION, I THINK IN D.C.F BUT WITH THE EXCEPTION OF THAT, THERE'S BEEN VERY LITTLE IN THE WAY OF CONSOLIATION.
I BELIEVE THE PUBLIC BELIEVES THERE'S PLENTY OF ROOM
>> WHY IS THAT?
WHY DIDN'T YOU LOOK AT MORE CONSOLIDATIONS AND MERGERS?
>> WELL, ONCE AGAIN WE WERE GIVEN A BUDGET THAT WAS VERY OUT OF BALANCE.
CONSOLIDATION THAT THE GOVERNOR PROPOSED WERE EITHER ILL-THOUGHT OUT OR NOT THOUGHT OUT IN PROPER FORM.
WE ELIMINATED MORE POSITIONS.
WE ELIMINATED EVERY SINGLE VACANT FUNDED POSITION.
EVERY AGENCY WAS ASKED HOW MANY POSITIONS THEY HAVE AND ELIMINATED A BUNCH OF UNFUNDED POSITIONS.
WE ALSO PUT IN PROVISION IN THE BUDGET LANGUAGE THAT SAYS PUT HIGHER BAR TO REFILL IN POSITIONS OF STATE GOVERNMENT.
I THINK SOMETHING THAT I THINK THAT WAS CRITICIZING FOR ASKING QUESTIONS ABOUT THE BUDGET.
WE PUT A HIGHER BAR SAYING THAT THE LEGISLATURE HAD SOME SAY WHEN GOVERNOR WANTED THE POSITION.
WE WERE VERY SERIOUS.
I'M HAPPY THAT THE -- I SAID ALL ALONG THAT THE STATE EMPLOYEES WERE GOING TO COME TO THE TABLE IF THEY HAVE IN THE PAST IT LOOKS LIKE THEY HAVE GOT A DEAL.
>> LET ME ASK YOU ABOUT THE DEAL.
THE DEAL SUPPOSEDLY, WHICH IS NOT FINALIZED BY THE WAY, SHAPE OR FORM, THE WHOLE THING COULD FALL APART.
THEY CLAIM THERE COULD BE AS MUCH AS 647 MILLION OF SAVINGS IN THERE.
PART THAT HAVE IS SORT OF, I GUESS WHAT YOU CALL JOB PROTECTION SITUATION, ORDEAL, NO LAYOFFS IN OTHER WORDS.
WHICH I THINK GETS IN TO A CRITICISM THAT SOME PEOPLE HAVE OF DEMOCRATS, THEY SAY, WELL, HERE WE GO AGAIN.
SOCIAL SERVICE ADVOCATES AND STATE EMPLOYEES, THOSE ARE THE DEMOCRATS NATURAL CONSTITUENCIES, POLITICALLY.
THEY'RE GOING TO PROTECT THEM.
NOT GOING TO CUT STATE JOBS.
THE ONES LOOK AS IF DEMOCRATS HAVE NO GUTS, NO WILLINGNESS TO SAY, WE CAN TAKE STATE GOVERNMENT AND MAKE IT SMALLER.
WE CAN'T DO THAT BECAUSE THOSE ARE OUR CONSTITUENCIES, STATE EMPLOYEE UNIONS, SOCIAL SERVICE PROGRAMS WE CAN'T CUT THERE.
HOW DO YOU ANSWER THAT?
>> WELL, I'LL ANSWER THE WAY I JUST ANSWERED IT.
WE CUT MORE POSITIONS OUT OF THE BUDGET THAN THE GOVERNOR DID.
>> YOU ARE TALKING ABOUT VACANT POSITIONS, NOT CUTTING JOBS, PERCENT SAY, NOT LAYING ANYBODY OFF.
>> I WOULD SAY THE CUT TO D.C.F IS GOING TO COST PEOPLE JOBS.
WE HAVE IN THE BACK OF OUR MIND, WE DON'T AGREE WITH THE POLICY THAT THERE WILL BE AGREEMENT ON RETIREMENT AS PART OF THE PACKAGE I THINK THROUGH ATTRITION AND RETIREMENT WE'RE GOING TO HAVE LESS STATE EMPLOYEES, REPRESENTATIVE MINER WILL BE HAPPY WITH THAT WHEN IT'S ALL OVER.
WE TOO THAT IN TO ACCOUNT, TOO.
I THINK THE 25% REDUCTION IN MANAGERIAL POSITIONS OF DCF COULD BE GONE THROUGH ATTRITION AND EARLY RETIREMENT.
>> DO YOU THINK THAT DEMOCRATS POLITICALLY ARE AFRAID TO CUT DEEPER BECAUSE IT GOES TO THEIR CONSTITUENCIES?
>> LET ME FIRST SAY I'M NOT HAPPY ABOUT ANY JOB LOSS.
TO ANTICIPATE THAT ANYONE IS GOING TO LOSE A POSITION WHETHER IT'S IN PRIVATE SECTOR OR PUBLIC SECTOR IS TROUBLING.
BUT GIVEN THE CURRENT ECONOMIC TIMES, IF THIS WAS A BUSINESS, WE WOULD BE RUSHING TO TRY TO FILE SOME BANKRUPTCY PAPERWORK JUST TO KEEP OURSELVES SOLVENT.
WE'RE OUT OF CASH, WE'RE VERY CLOSE TO OUT OF CASH, WE HAVE DRAINED OURSELVES $2 BILLION IN CASH THAT MEANS OPERATING MONEY WE DON'T HAVE.
WE'RE ON THE PRECIPICE OF GOING TO THE BOND MARKET TO BORROW FOR CURRENT YEAR'S EXPENSES.
THOSE ARE SERIOUS THINGS.
THAT A FEW IN THE PRIVATE SECTOR SPEAK ABOUT PROTECTION.
BECAUSE WE'RE STATE GOVERNMENT WE MANAGE TO MAKE THIS WHOLE THING WORK.
I THINK THAT THE JOB CUTS NEED TO BE DEEPER, I BELIEVE THAT THERE SHOULD BE ROLLING LAYOFFS.
I THINK THERE SHOULD BE REDUCTIONS IN WAGE.
I THINK THERE SHOULD BE INCREASES IN COPAYS FOR HEALTH INSURANCE.
I THINK THAT'S GOT TO BE ACROSS THE BOARD.
>> YOU THINK THAT THAT COULD BE DONE WITHOUT HURTING THE CORE FUNCTIONS OF STATE GOVERNMENT?
>> I THINK THERE ARE WAYS THAT YOU CAN STAGGER IN ADDITION TO THE EARLY RETIREMENT INCENTIVE WHICH IS NOT -- SHOULD NOT BE VIEWED AS GIVE ON THE PART OF BARRENING AGREEMENTS.
THESE ARE PEOPLE WHO ARE ELIGIBLE TO LEAVE.
BUT I DO BELIEVE THAT YOU COULD FASHION A ROLLING LAY OFF SITUATION WHERE PEOPLE TAKE THAT PENALTY -- TAKE THAT HIT, I GUESS IT IS, OVER A PERIOD OF TIME.
EVERYBODY SHARES IN IT WHETHER YOU'RE A LEGISLATOR OR PERSON WORKING IN THE DEPARTMENT OF CORRECTIONS.
IN AN EFFORT TO REDUCE THE COST, OVERALL COST OF THE STATE GOVERNMENT.
>> WHAT ABOUT THAT?
>> WELL, FIRST OF ALL THE EARLY RETIREMENT WAS SOMETHING I VIEW WAS PROCEED POEED BY THE GOVERNMENT NOR -- PROCEED POSITIVESSED BY THE GOVERNMENT, NOT SOMETHING THE EMPLOYEES WANTED.
BUT WE NEED THOSE $637 MILLION IN SAVINGS IN ORDER TO BALANCE OUR BUDGET.
WITHOUT THOSE WE CANNOT -- IF WE LAID OFF 20% OF THE STATE EMPLOYEES IT WOULDN'T SAVE US A THIRD OF THAT I WOULD SAY.
THAT'S THE PROBLEM WE FIND OURSELVES IN.
WE NEED THAT -- THOSE GIVE-BACKS TO HELP BALANCE THE BUDGET.  
LET ME TURN THE QUESTION AROUND ON YOU REPRESENTATIVE MINER, THE REPUBLICAN MANTRA SEEMS TO BE "CUT, CUT, CUT" YOU SAY THAT EVEN MORE THIS YEAR BECAUSE OF THE SIZE OF THE DEFICIT.
IF YOU KEEP CUTTING AND YOU CUT AWAY AT STATE GOVERNMENT AT A TIME WHEN THE PUBLIC PROBABLY NEEDS STATE GOVERNMENT SERVICES MORE THAN THEY HAVE BEFORE, AREN'T YOU WILLING TO H DEEPENING THE RECESSION, MAKING IT MORE PAINFUL FOR EVERYBODY?
>> I THINK REPRESENTATIVE GERAGOSIAN WOULD AGREE THAT THE NEXT TWO YEARS OF THE STATE'S BUDGET IN BOTH THEIR CASE AND GOVERNOR'S CASE INCLUDE COMPLETE EXPENDITURE OF THE RAINY DAY FUND.
IT ALSO INCLUDES THE USE OF, I THINK IT'S A $1.4 BILLION IN FEDERAL STIMULUS MONEY.
TO IMAGINE THAT MULTI-BILLION DOLLAR TAX INCREASE ON TOP OF THAT, KNOWING THAT THAT IS GOING TO GO AWAY IN TWO YEARS, IF YOU LOOK AT 2012 AND 2013 WE DON'T HAVE THOSE FUNDING MECHANISMS.
THOSE ARE ONE-TIME REVENUES THAT DISAPPEAR.
IF WE DON'T MAKE SERIOUS STRUCTURAL CHANGES IN THE WAY WE DO BUSINESS DURING THIS BIENNIUM, ALL THOSE EXPENSES ARE GOING TO ROLL OUT IN TO THE NEXT BIENNIUM AND CAUSE ANOTHER PROBLEM WHICH IS ANOTHER TAX INCREASE ON TOP OF THE ONE THAT THE DEMOCRATS ARE CURRENTLY PROPOSING.
OR MORE SIGNIFICANT CHANGES IN EMPLOYMENT THAT COULD HAVE BEEN TALKED ABOUT NOW.
I DO BELIEVE THAT IT'S AN OPPORTUNITY FOR US TO RETHINK HOW WE DO GOVERNMENT, LOT OF WAYS FOR US TO DO THAT, TECHNOLOGY EXISTS FOR PEOPLE TO GET THEIR DRIVER'S LICENSE, THEIR REGISTRATION ONLINE.
I GOT A REGISTRATION TWO YEARS ONLINE TO ONE OF MY VEHICLES.
I'VE YET TO GET ANOTHER ONE IN THE MAIL.
THAT ALLOWS ME TO DO THAT ONLINE.
DO I THINK WE SHOULD PUT THAT IN PLACE AND FIRE 200 PLOY HE'S?
ABSOLUTELY NOT.
I THINK OVER THE BIENNIUM WE CAN RAMP UP A LOT THAT HAVE TECHNOLOGY AND DECREASE THE NEED THAT WE HAVE FOR STATE EMPLOYEES AND NOT BACKFILL WITH THE RATE THAT MOST EARLY RETIREMENT PACKAGES TALK ABOUT.
THERE ARE VERY EASY WAYS FOR US TO DO THIS.
>> DO YOU WANT TO COMMENT ON THAT?
>> WE AGREE THAT WE HAVE TO MOVE FORWARD TALKING ABOUT THE BMV AND OTHER AGENCIES TO DO THINGS ELECTRONICALLY.
I'M A REALTOR IN MY OTHER LIFE, I RENEWED MY LICENSE ONLINE AND VERY CONVENIENT, THE WAY SHE WOULD BE GOING.
ON THE ISSUE OF THE ECONOMY AND THERE WAS ARTICLE IN THE "CURRENT" SAYING EVERY BILLION WE CUT OUT OF THIS BUDGET IT COSTS 7,000 JOBS IN THE PRIVATE SECTOR.
NO TO MENTION HOW MANY PUBLIC SECTOR JOBS IT WILL COST.
THIS WAS NOT -- OUR EX ARE SIGHS HERE DOES NOT OCCUR IN A VACUUM.
I CAN VERY EASILY CUT THE BUDGET 20% AND GO HOME IF THAT'S ALL WE NEEDED TO DO WAS FIND SAVINGS.
WE HAVE TO BE MINDFUL OF THE ECONOMY, WE TRY TO DO THAT AS WE APPROACH THIS.
THE QUESTION ABOUT CUTTING, IF THE GOVERNOR THOUGHT MORE REDUCTIONS NEEDED TO BE MADE IN HER BUDGET SHE COULD HAVE DONE THAT.
SHE PROPOSED BUDGET IN HER BUDGET AND INCREASING FEES, PROFESSIONAL LICENSING FEES, SOMETHING WE DIDN'T PROPOSE IN OUR BUDGET.
IF THE CUTS THERE WERE SHE COULD HAVE MADE THEM.
>> WHAT ABOUT THE CRITICISM THAT THERE'S TOO MUCH BORROWING IN THIS BUDGET IN HER VIEW, TO USE HER QUOTE, IT'S AS IF YOU JUST GAVE UP ON TRYING TO CUT SPENDING, YOU JUST SAID, LET'S JUST CHARGE IT.
BORROW AWAY THE DEFICIT.
>> IT GOES TO WHAT I JUST TALKED ABOUT IN TERMS OF, AT SOME POINT CUTTING TO THE BONE DOES NOT HELP THE ECONOMY OUT THERE.
THE FEDERAL GOVERNMENT MADE BIGGEST BET IN HISTORY WITH THE FEDERAL STIMULUS DOLLARS.
THEY PUT A TRILLION AND HALF AT THE BANKING, ON THE LINE, THE RELIBERATE THIS ECONOMY.
THEY GAVE US ABOUT 1.3 OR 1.4 BILLION DOLLARS TO TRY TO HELP US WITH OUR BUDGET.
TO THE EXTENT WE CUT TOO MUCH WE'RE GOING TO UNDERMINE THE INTENT THAT HAVE FEDERAL STIMULUS PLAN.
I THINK THAT IS THE WRONG DIRECTION.
>> TOO MUCH BORROWING?
>> ABSOLUTELY.
I THINK IT'S GOING TO GET WORSE.
I DON'T BELIEVE FOR ONE MINUTE THAT THE DEMOCRAT CONTROLLED LEGISLATURE ANTICIPATES BORROWING HALF A BILLION DOLLARS BETWEEN NOW AND THE END OF THIS FISCAL YEAR.
I THINK GOING TO LOOK MORE LIKE A BILLION DOLLARS I WOULDN'T BE A BIT SURPRISED GIVEN, I'LL SAY ACCOUNTING ISSUES WITHIN THE OPERATING BUDGET THAT THEY PROPOSE.
AND THE REVENUE STREAM THAT THEY PROPOSE THAT THEY WILL BE BORROW IN THE BIENNIUM.
>> LET ME ASK YOU BOTH, DO YOU THINK YOU'RE GOING TO HAVE ANY INPUT NOW THAT -- ALL RIGHT, DEMOCRATIC BUDGE SET OUT THERE, THE ASSUMPTION IS WE'RE GOING TO GET IN TO NEGOTIATIONS BETWEEN ADMINISTRATION AND THE LEGISLATIVE LEADERS, SO IS YOUR WORK DONE, YOU JUST WAVE AT THOSE FOLKS AND MOVE ON OR DO YOU THINK THERE'S A ROLE FOR BOTH SIDES OF YOUR COMMITTEE?
>> I CERTAINLY DON'T WANT TO SPEAK FOR THE DEMOCRATS SIDE.
BUT AT LEAST MY EXPERIENCE HAS BEEN BOTH FROM THE TIME I SERVED ON FINANCE COMMITTEE NOW ON APPROPRIATIONS COMMITTEE THAT IT HAS NOT BEEN A TOP-DOWN EFFORT.
IT HAS BEEN VERY MUCH HANDS ON EFFORT ON THE PART OF THE PEOPLE THAT ARE ASSIGNED TO THESE COMMIT THESE WHETHER WITH ITS FINANCE OR APPROPRIATIONS THAT'S NOT MY EXPERIENCE ON THE DEMOCRAT SIDE.
VERY HEAVY TOP-DOWN STRUCTURE.
I THINK REPRESENTATIVE GERAGOSIAN WOULD AGREE THAT MOST DECISIONS ARE MADE BY HIS BOSS OTHER THAN BY MINE.
>> WILL YOU BE INVOLVED AT ALL OR DO YOU THINK YOUR BOSSES WILL BE HANDLING IT?
>> I'LL BE WHEREVER I HAVE TO BE.
I ASSUME I'LL BE INVOLVED, I ASSUME THAT WE'LL HAVE GOOD DIALOGUE WITH THE ADMINISTRATION, I'VE HAD COUPLE OF MEETINGS THE LAST COUPLE OF DAYS, THE SECRETARY OF OFFICE OF POLICY AND MANAGEMENT.
AND WE'RE OLD FRIENDS, HE WAS THE CHAIRMAN OF THE COMMITTEE YEARS AGO, HE UNDERSTANDS MY POSITION AND WE'RE HOPEFULLY WORKING TOWARDS A RESOLUTION.
>> MAYBE I JUMPED THE GUN.
ANY CHANCE THE DEMOCRATS MIGHT JUST TAKE YOUR BUDGET AND RUN IT ON THE FLOOR AND SEND IT TO GOVERNOR RELL SAY, VETO IF YOU WANT.
WE'VE GOT THE VOTES OR DO YOU THINK THAT'S NOT GOING TO HAPPEN.
>> WHAT I SAID EARLIER ON, THAT IS JUST PLAN THAT WE PUT OUT THERE.
WE'RE NOT TOTALLY MARRIED TO IT.
WE CAN -- THERE CAN BE CHANGES IN DISCUSSION AND DIALOGUE WITH THE REPUBLICANS.
IT WAS BALANCED, AS WE SAID IT WOULD BE, WE WANT TO WORK WITH ALL THE PARTIES TO TRY TO COME TO A RESOLUTION.
>> WE HAVE ABOUT 30 SECONDS LEFT.
WHAT DO YOU THINK IS GOING TO HAPPEN?
>> I THINK THERE WILL BE NEGOTIATION PROCESS.
I WOULD BE SURPRISED IF THEY RAN THIS BUDGET.
I DON'T THINK THEY HAVE THE VOTES TO PASS IT IN EITHER CHAMBER WHETHER IT'S THE TAX PACKAGE OR THE STIMULUS PACKAGE.
>> WE'LL SEE HOW IT TURNS OUT.
THANKS TO BOTH OF YOU FOR BEING WITH US.
WE'LL BE BACK WITH OUR REPORTERS ROUNDTABLE.

>> MY GUEST THIS WEEK IN REPORTERS ROUNDTABLE IS PAUL HUGHES FROM "THE WATERBURY REPUBLICAN AMERICAN" SAID IN THE HEADLINES, PAUL.
THAT THE ICY WINTER OF PARTISAN RHETORIC IS MIND US AND ON THE HORIZON.
WE SEE THE HOPEFUL SIGNS EVER THE SPRING THAW.
I DON'T KNOW WHAT I'M TALKING ABOUT.
THERE HAVE BEEN SOME SIGNS OF PROGRESS THIS WEEK.
ONE OF THEM WAS THAT THE LABOR UNIONS AND RELL ADMINISTRATION PUT OUT A JOINT STATEMENT IN WHICH THEY SAID THESE NEGOTIATIONS THAT WE'VE HEARD SO MUCH ABOUT WITHOUT ANY DETAILS ARE SUPPOSEDLY MAKING SOME PROGRESS AND THAT THEY EXPECT TO REACH AN AGREEMENT IF THERE ARE NO MAJOR STUMBLING BLOCKS AT THE END THAT COULD MEAN SOMETHING LIKE $637 MILLION IN CONCESSIONS.
NOW, THIS, GUESS YOU COULD SAY IS A LEGITIMATE SIGN OF PROGRESS THINGS MOVING IN THE RIGHT DIRECTION.
>> IT'S BIG.
BOTH THE DEMOCRATS AND THE GOVERNOR WERE COUNTING ON HELP FROM THE UNIONS IN CLOSING THESE BILLION DOLLAR DEFICITS THAT THEY'RE STARING AT IN THE NEXT TWO FISCAL YEARS AS WELL AS HELP IN CLOSING THIS YEAR'S DEFICIT WHICH IS ESTIMATED BETWEEN 660 BILLION PLUS THROUGH JUNE 30 OF THIS YEAR.
THOSE CONSECTIONS WILL GO A LONG WAY IN HELPING BRIDGE THAT GAP.
>> ARE THERE ANY DETAILS ON WHAT THOSE CONCESSIONS WOULD BE?
>> WE HAVEN'T HEARD ANY PARTICULARS YET.
THEY SAY THEY'RE GOING TO PRESENT IT TO THE UNION MEMBERSHIP AND DELEGATES FIRST.
BUT THEY HAVE CONFIRMED THAT THERE'S GOING TO BE RETIREMENT INCENTIVES.
THE GOVERNOR WHEN SHE WAS PROPOSING THAT EARLIER THIS YEAR SAID, STATE WORKERS WHO ARE 55 YEARS OLD HAVE TEN YEARS TO SERVE OR HAZARDOUS DUTY EMPLOYEE SUCH AS STATE POLICE OFFICER, YOU JUST HAVE -- NO AGE LIMIT JUST HAVE 20 YEARS ON THE JOB.
LIKELY BE FURLOUGHSS, SOMETHING THAT WAS MENTIONED.
>> WAGE AND HEALTH CONCESSIONS.
>> WHICH PROBABLY WOULD BE INCREASES IN COPAYMENTS FOR HEALTH INSURANCE.
RIGHT NOW STATE EMPLOYEES PAY I BELIEVE $3 AND $6 FOR PRESCRIPTION DRUGS WHETHER IT'S BRAND NAME OR GENERIC.
WHICH IS OBVIOUSLY A LOT LESS THAN MANY OF US ARE PAYING.
>> THESE ARE THE SAME KIND OF CONSECTIONS THAT ARE GOING ON IN THE PRIVATE SECTOR SO THERE'S NOTHING UNUSUAL.
>> NO.
I THINK ALSO SEE ON LOCAL LEVEL IN MANY TIMES WE'RE SEEING AGREEING TO A NUMBER OF CONCESSION PACKAGES.
>> THE ONE STICKING POINT IF THERE IS ONE IN THAT WHOLE DEAL SEEMS TO BE THAT THE UNIONS WANT A JOB GUARANTEE.
MORE OR LESS MODIFIED NO LAY OFF PLAN.
IF WE GO BACK SIX YEARS LAST IN THIS SORT OF SITUATION.
WHEN WE SAW WAGE FREEZES AND OTHER CONSECTIONS BASICALLY I BELIEVE THE TIMES THAT THE UNIONS WILL GO TO THESE NEGOTIATIONS SAY BOTTOM LINE, JOB SECURITY HAS GOT TO BE PART OF THE DEAL.
>> AND AS I SAID THERE'S NO SIGNING ON THE DOTTED LINE HERE, SO THESE TALKS COULD STILL FALL APART, APPARENTLY ESPECIALLY OVER THAT NO LAY OFF DEAL, HOW LONG YOU MIGHT WANT TO DO IT TWO, YEARS, THREE YEARS, FOUR YEARS.
>> IT LOOKS LIKE IN THE JOINT STATEMENT THEY TALKED ABOUT A TWO-YEAR WHICH WOULD BE THE LIFE OF OUR BUDGET.
WE ADOPT BUDGETS EVERY TWO YEARS IN CONNECTICUT.
WHEN DO YOU THINK THAT -- WHEN DO YOU THINK THEY WILL BE AN AGREEMENT THERE?
YOU NEED THAT BEFORE YOU DECIDE WHERE YOU GO WITH THE REST OF THE BUDGET.
>> I THINK WANT THAT PIECE THERE.
I THINK YOU WANT THAT PIECE SETTLED.
THE STATEMENT TALKED ABOUT MATTER OF DAYS.
NOT WEEKS, I WOULD SAY WE CAN SEE ACTION FAIRLY QUICKLY.
>> THE OTHER SORT OF POSITIVE SIGN WAS, GOVERNOR RELL PUT OUT YET ANOTHER ONE OF THESE DEFICIT MITIGATION PROGRAMS, MORE SPENDING CUTBACKS, BECAUSE AS WE SAID IN THE FRONT HALF OF THE SHOW, THE DEFICIT KEEPS GROWING AND YOU HAVE TO KEEP COPING WITH IT.
BUT HER TONE WAS KIND OF CONCILIA FORERE.
SHE DIDN'T SAY, I'M ORDERING YOU OR I REALLY WANT YOU TO DO -- SHE SAID THESE^ ARE MY SUGGESTIONS.
>> WHICH DID MARK A DEPATURE FROM WHAT WE HAVE BEEN HEARING.
THERE ARE A LOT OF JAW-BONING AND FINGER WAGGING, I DON'T THINK WE'RE DONE WITH IT.
BUT NOW THE DEMOCRATS PUT A BUDGET PLAN ON THE TABLE.
NOW WE START IN NEGOTIATIONS.
THIS WAS, I GUESS, SORT OF HER WAY OF TRYING TO EXTEND AN OLIVE BRANCH IF YOU WILL.
AT THE SAME TIME, I THINK THE DEMOCRATS HAVE SORT OF HAD IT WITH WHAT THEY PERCEIVE AS GOVERNOR LECTURING TO THEM AND SORT OF SEE THAT IN RESPONSES THAT CAME OUT WITH THE BUDGET.
LET'S START NEGOTIATING RIGHT AWAY, OR EVEN WHEN DEMOCRATIC LEADERSHIP REACTED TO THAT UNION AGREEMENT, IT WAS LIKE, GOOD JOB, BUT, BY THE WAY -- HERE SOME SOME CRITICISM.
>> AN APPARENT, I GUESS COULD YOU CALL SIGN OF CONCILIATION BY THE DEMOCRATS THEY PUT THEIR BUDGETS ON THE TABLE.
THEIR TAX PACKAGE ON THE TABLE THEY SAID WE THINK IT'S A LOT BETTER THAN GOVERNOR RELL'S AND A LOT MORE HONEST.
BUT THEY DID NOT SAY WE'RE GOING TO RUN THIS BUDGET NEXT WEEK WE'VE GOT THE VOTES TO PASS IT.
AND IF GOVERNOR RELL WANTS TO VETO SHE CAN GO AHEAD VETO IT.
THEY'RE HOLDING BACK.
>> WE'VE BEEN THROUGH THESE EXERCISES BEFORE.
WHERE THE DEMOCRATS WOULD PUT BUDGET ON THE TABLE, PASS THE BUDGET, PUT IT TO THE GOVERNOR, GET VETOED.
I THINK WE SEEM TO BE NOT FOLLOWING THAT COURSE THIS TIME AROUND.
AT LEAST AT THIS POINT.
PLUS THE FACT OF THE MATTER IS THAT IN REALITY DEMOCRATS KNOW THAT THEY DON'T HAVE THE VOTES TO DO IT.
>> I WAS GOING TO ASK YOU ON THE SURFACE IT LOOKS LIKE WE'RE SAY CAN, WE COULD RAM IT THROUGH BUT NOT GOING TO DO IT BECAUSE WE BELIEVE IN NEGOTIATIONS.
WHAT YOU ARE SAYING IS, YOU DON'T THINK THAT WITHIN THEIR OWN CAUCUS THEY CAN MUSTER THE VOTES FOR THIS?
>> I SHOULD BE MORE CAREFUL.
I DON'T THINK THEY CAN MUSTER THE VOTES TO OVERRIDE A RELL VETO TO, PASS IT.
WOULDN'T HAVE THE VOTES IN THE SENATE.
WE SEE SET OF DEMOCRATS VOTED AGAINST SPENDING OR THE TAX PACKAGES.
BUT I DO THINK IT'S PROBLEMATIC FOR DEMOCRATS TO TRY TO PASS ONE OF THOSE BUDGETS.
WHEN WE PUT IT TO THE MEMBERSHIP, COULD YOU PASS IT, PROBABLY.
BUT WHAT SORT OF MARGIN WOULD IT BE AND WHAT SORT OF POSITION DOES THAT PUT YOU IN GOING IN TO THE BUDGET NEGOTIATIONS WHEN GOVERNOR ALREADY KNOWS NOT ONLY CAN YOU OVERRIDE MY RETOE BARELY GET THIS PASSED.
>> BETTER TO PLAY NICE AND SAY, GOVERNOR, YOU PRESENTED YOUR PLAN NOW WE'VE HAD CHANCE TO PRESENT OUR PLAN, MEDIA HAS WRITTEN ABOUT BOTH OF THEM.
NOW LET'S SIT DOWN AND TALK.
>> WE HAVEN'T SEEN THEM PLAY NICE, WE HAVEN'T SEEN THEM SIT DOWN AND TALK.
THE BUDGET CAME OUT, DEMOCRATIC BUDGET CAME OUT A WEEK AGO, PEOPLE TALK ABOUT GETTING TOGETHER, THEY YET TO SCHEDULE ANY MEETINGS.
>> IS PART OF THAT WHAT WE CALL MAGIC DATE OF APRIL 15TH, THE TAX FILING?
SEE HOW BAD THINGS REALLY ARE?
>> THAT'S PART OF THE THING ABOUT ALL THE FINGER WAGGING AND JAW-BONING, BOTH SIDES KNOW THAT THEY'RE NOT GOING TO HAVE THE MOST ACCURATE TAX DATA UNTIL APRIL 15TH.
THEN AFTERWARDS THEY WILL HAVE BETTER HANDLE ON IT.
REALISTICALLY YOU DON'T KNOW WHAT THE REGULAR PICTURE IS GOING TO BE LIKE UNTIL AFTER APRIL 15TH.
>> WE'RE GOING TO HAVE TO WAIT AND SEE, PAUL, IF ALL THIS PEACE AND LOVE CONTINUES OR WINDS UP DUMPING RIGHT BACK DOWN IN TO THE OLD PATTERN.
>> THAT'S WHAT THE DOGS WANT.
>> SEE WHAT HAPPENS.
FOLKS, WE'LL SEE YOU NEXT WEEK "ON THE RECORD."