I’M STEVE KOTCHKO. WELCOME TO ANOTHER EDITION OF “ON THE RECORD.” FIRST, A LOOK AT THIS WEEK’S STATE HEADLINES. THE 2009 LEGISLATIVE SESSION ENDS WITHOUT APPROVING A NEW STATE BUDGET. WE’LL TALK TO LEGISLATIVE LEADERS ABOUT THE SESSION IN OUR NEWSMAKER SEGMENT. THE NEW TARGET DATE FOR A STATE BUDGET DEAL IS JULY 1ST, THE START OF THE FISCAL YEAR. CAN LAWMAKERS GET THE JOB DONE IN TIME? WE’LL ASK VETERAN JOURNALISTS IN OUR REPORTERS ROUNDTABLE. REPUBLICAN GOVERNOR JODI RELL VETOES A BILL ON REVENUE FORECASTING SENT TO HER BY THE DEMOCRAT-CONTROLLED LEGISLATURE. IT’S POSSIBLE MANY MORE VETOES ARE ON THE WAY. AND ATTORNEY GENERAL RICHARD BLUMENTHAL ANNOUNCED THE FINAL SETTLEMENT IN LITIGATION TO RECOVER MONEY FROM CONTRACTORS IN THE BADLY BUNGLED I-84 STORM DRAIN PROJECT. ABOUT $22 MILLION WAS RECOVERED. THOSE ARE THE HEADLINES. PLEASE STAY WITH US. >> AND MY GUESTS THIS WEEK IN OUR NEWS MAKER SEGMENT ARE STATE SENATE MAJORITY LEADER, MARTIN LOONIE AND MAJORITY SENATE LEADER, DAN DEBICELLA. WE WANT TO TALK WITH YOU VERY ABOUT THE SESSION JUST ENDED AND HOPEFULLY COME UP WITH A BUDGET. LET'S START IN ON THAT TOPIC. WE HAVE THE WORST ECONOMY IN DECADES, EVERYONE KNOWS, AT THE NATIONAL LEVEL THE FEDERAL GOVERNMENT, THE NEW OBAMA ADMINISTRATION CONGRESS HAS TAKEN DRAMATIC ACTION TO STAVE OFF BANKRUPTCY OR GET SOME INTO BANKRUPTCY AND HELP OTHERS ON IT. HERE IN CONNECTICUT, IT WOULD SEEM THAT THE ONE TARGETED THING THAT HAD TO BE DONE THIS YEAR WAS A NEW BUDGET FOR THE TWO-YEAR CYCLE COMING UP ON JULY 1ST AND A REMEDY TO THE MULTIBILLION DOLLAR STATE DEFICIT. AT THE BEGINNING OF THE YEAR FROM BOTH SIDES, WE ALL HEARD PROMISE ELSE OF COOPERATION AND A DETERMINED ACTION TO EASE THE DEFICIT AND GET THIS TASK DONE ON TIME, YET A WHOLE SIX-MONTH SESSION WENT BY AND IT ENDED WITHOUT A BUDGET IN PLACE AND REALLY NOT ANY SORT OF FOCUSED NEGOTIATIONS GOING ON AT THE TIME THE SESSION ENDED. TO THE AVERAGE PUBLIC, THE AVERAGE VOTER OUT THERE, HOWEVER, THIS LOOKS AS IF YOU FAILED IN THE MAIN TASK THAT YOU HAD TO DO THIS YEAR, WOULD YOU AGREE WITH THAT? I WOULDN'T, REALLY. I THINK THE PROBLEM THAT WE HAD, STEVE, GOES BACK TO FEBRUARY 4TH WHEN THE GOVERNOR PRESENTED A BUDGET THAT ONLY ACKNOWLEDGED A $6 BILLION DEFICIT FOR THE BIENNIUM, WHEN EVERYONE ACKNOWLEDGED IT WAS GOING TO BE OVER 8, $8.7 BILLION. SHE PRESENTED AND UNREAL PARTIAL BUDGET AND MOST OF THE STORY FROM THAT POINT HAS BEEN TRYING TO COME TO AN UNDERSTANDING OF WHAT THE ACTUAL DEFICIT NUMBER IS. I DON'T THINK WE HAVE EVER HAD THIS PROBLEM BEFORE WITH THE OFFICE OF FISCAL ANALYSIS AND THE GOVERNOR'S OFFICE BEING SO FAR APART ON A DEFICIT PROJECTION. THAT WAS THE REASON FOR THE BILL WE PASSED A FEW DAYS BEFORE THE END OF THE SESSION TO COMPEL A BUDGET RECONCILIATION AND A CONSENSUS BUDGET THAT IF THERE IS PERSISTENT DISAGREEMENT BETWEEN THE GOVERNOR AND THE LEGISLATIVE OFFICES, THAT THE COMPTROLLER SHOULD BREAK THE TIE. 26 STATES DO HAVE SIMILAR LEGISLATION LIKE THAT. IT NEVER HAS OCCURRED IN CONNECTICUT PRIOR TO THIS YEAR. BUT THE ISSUE, IF THE GOVERNOR HAD PRESENTED A BUDGET IN FEBRUARY THAT ACKNOWLEDGED THE SCOPE OF THE DEFICIT AS EVERYONE ACKNOWLEDGED IT TO BE, WE WOULD HAVE OR BE CLOSE TO AN AGREEMENT BY THIS POINT. FLORIDA PROCESS WAS POSTPONED AS INVASION. >> WAS IT'S AN EVASION, OR WAS IT THE FAULT OF THE GOVERNOR? >> ABSOLUTELY NOT. THE SESSION WAS AN ABSOLUTE FAILURE. WE SPENT A LOT OF TIME DEBATING BILLS THAT EVERYONE NOVEMBERS IS GOING TO GET VETOED BY THE GOVERNOR, WE SPENT 24 HOURS DEBATING A DEATH PENALTY BILL THAT GOVERNOR SAID SHE WILL VETO. THERE'S A VERY DEEP DIVIDE BETWEEN APPROACHES FOR HOW TO CLOSE THAT BUDGET. THE GOVERNOR AND REPUBLICANS HAVE PRESENTED FOUR DIFFERENT BUDGETS IN WHICH WE HAVE CLOSED THE DOVE SIT WITHOUT RAISING TAXES. THE DEMOCRATS HAVE PROPOSED 3 ABOUT $3 MILLION IN NEW TAXES, AND THEN JUST A DEEP DIVIDE WE HAVE RIGHT NOW, BETWEEN $3 BILLION IN CUTS FROM THE REPUBLICANS AND CUTS FROM GOVERNOR RELL AND $3 BILLION IN TAX INCREASES FROM THE DEMOCRATS. WE NEED TO GET SERIOUS ABOUT NEGOTIATING THAT. THIS SESSION, EVEN THOUGH THERE WERE MEETINGS, WE HAVEN'T MADE THE PROGRESS THAT WE SHOULD. IN THAT SENSE, I THINK THIS LEGISLATIVE SESSION WAS A FAILURE. >> YOU BOTH JUST VOICED THE CLASSIC ARGUMENT THAT YOU HAVE PARTIES HAVE MADE SINCE JANUARY AND FEBRUARY, THE GOVERNOR'S BUDGET IS A FRAUD, THAT'S WHAT DEMOCRATS SAY. THE DEMOCRATS ARE LUSTING FOR TAX INCREASES IS WHAT THE REPUBLICANS SAY. AFTER ALL, ISN'T IT TIME TO GET OFF THE RHETORIC, GET OFF THOSE ARGUMENTS AND SIT DOWN TOGETHER AND COME UP WITH SOMETHING? I MEAN, THAT'S WHAT PEOPLE WANT. WHEN YOU KEEP RESTATING YOUR POSITIONS LIKE THAT, I DON'T THINK YOU ARE FOOLING ANYBODY ANY MORE. >> THAT'S WHAT ULTIMATELY WILL HAPPEN. >> WHY SHOULD THE PUBLIC BELIEVE THAT'S THE CASE. YOU HAD SIX MONTHS TO DO THIS AND YOU HAVEN'T DONE IT. >> BECAUSE THERE ALWAYS IS AT SOME POINT. AT SOME POINT A DEAL WILL BE REACHED. IT'S A LENGTHY PAINFUL PROCESS. IT WILL HAVE A RESOLUTION. BUT AS YOU SAID, THE FUNDAMENTAL DIFFERENCES THAT WE BELIEVE THAT THERE ARE A NUMBER OF ESSENTIAL STATE SERVICES THAT SHOULD NOT BE CURTAILED. WE HAVE NOW, AS DAN SAID, WE HAVE HAVING A FUNDAMENTAL DEBATE ABOUT WHAT IS THE CORE MISSION OF THE STATE AND WHAT HAS TO BE FUNDED IN BAD TIMES, AS WELL AS IN GOOD. THAT IS PART OF OUR DEBATE. IN THE END, THERE WILL BE -- THE FINAL BUDGET WILL HAVE TAX INCREASES AND WILL HAVE SPENDING CUTS. FROM THE POINT OF VIEW OF THE DEMOCRATS, WE THINK THAT IT WAS AN EVASION NOT TO ACKNOWLEDGE THAT THERE WOULD HAVE TO BE SOME REVENUE INCREASE, THAT IT IS NOT POSSIBLE, WE BELIEVE, TO ADDRESS THE WHOLE DEFICIT RESPONSIBLY ONLY BY CUTS. THAT'S BEEN PART OF THE PROBLEM. WHEN OUR NEGOTIATORS HAVE GONE IN AND SAID, WELL, AT WHAT POINT, GOVERNOR, HOW MUCH ARE WE LOOKING FOR IN CUTS HERE, AND THEN AT WHAT POINT ARE THERE BE REVENUE DISCUSSIONS. >> THEY WERE NEVER ABLE TO GET TO A BOTTOM LINE NUMBER ABOUT X NUMBER OF CUTS WILL BE SUFFICIENT BEFORE WE LOOK AT THE REVENUE SIDE. >> DAN, WHAT'S YOUR VIEW WHETHER BOTH PARTIES CAN COME UP SOMETHING? >> BOTH SIDES ARE GOING TO HAVE TO GIVE IN A LITTLE BIT. WE ARE WILLING TO GIVE IN ON A LOT OF THINGS ON OUR MOST RECENT PROPOSAL, WE ACCEPTED SOME OF THE DEMOCRATS' IDEAS ON FOR SELF INSURANCE, WE ARE WILLING TO CONSIDER REVENUE THAT IS NOT TAXED, SECURITIZATION OF FUTURE REVENUE STREAMS, AND EVEN WILLING TO TALK ABOUT BORROWING, SOMETHING WE HAVE HISTORICALLY BEEN OPPOSED TO. BOTH SIDES ARE GOING TO NEED TO GIVE A LITTLE. OUR SIDE IS GOING TO SAY WE ARE WILLING TO TALK ABOUT REVENUE INCREASES THAT AREN'T TAXES. I THINK THE DEMOCRATS NEED TO BE WILLING TO MAKE CUTS IN SERVICES THAT THEY MIGHT NOT WANT TO MAKE. >> LET ME ASK YOU ABOUT TAXES. ONE OF THE COMPLAINTS THAT DEMOCRATS HAVE MADE IS THAT THE GOVERNOR REFUSES TO TALK ABOUT REVENUES UNTIL QUOTE/UNQUOTE ALL THE SPENDING CUTS ARE DONE, IN MOST BUDGET NEGOTIATIONS, YOU HAVE TO SPORT OF DISCUSS BOTH. YOU HAVE TO DISCUSS CUTS, AND YOU TO HAVE DISCUSS WHAT YOU MIGHT BE ABLE TO DO ON REVENUES. BECAUSE IN THE END, YOU USUALLY CAN'T DO ONE OR THE OTHER. SO SHOULD THAT BE HAPPENING NOW? SHOULD TAX HIKES AT LEAST BE ON THE TABLE EVEN IF THEY ARE -- EVEN IF REPUBLICANS DON'T LIKE WHAT'S OUT THERE RIGHT NOW? >> I DON'T THINK TAX HIKES SHOULD BE ON THE TABLE. WE SHOULD NOT BE RAISING TAXES ON THE MIDDLE CLASS IN THE MIDDLE OF A RECESSION. >> WHO SAID TAXES ON THE MIDDLE CLASS. THE DEMOCRATS HAVE BEEN ON THE UPPER CLASSES, AND CORPORATIONS. MY GENERAL QUESTION IS WHY CAN'T REVENUE INCREASES IN GENERAL BE ON THE TABLE. IT DOESN'T HAVE TO BE THE DEMOCRATS, DOES IT. >> YOU HAVE TO MAKE THE DIFFERENCE BETWEEN REVENUE AND TAXES. WE ARE WILLING TO TALK ABOUT DIFFERENT REVENUE STREAMS, SUCH AS SECURITIZATION. WE ARE NOT WILLING TO TALK ABOUT THE TAX INCREASES WHICH ARE ON THE MIDDLE CLASS. THEY AREN'T JUST ON THE WEALTHY, THEY ARE ON THINGS LIKE HYBRID CARS AND SMOKING CESSATION PRODUCTS. INCREASING CIGARETTE TAX WHICH DISPROPORTIONATELY HURTS LOWER INCOME FOLKS IN CONNECTICUT. WE NEED TO MAKE SURE THAT WE ARE NOT INCREASING TAXES ON THE MIDDLE CLASS THIS SESSION, BUT REGULAR INCREASES ARE ON THE TABLE. >> REVENUE INCREASES, TAX INCREASES, SHOULD THEY BE IN THE MIX RIGHT NOW? >> I THINK THEY HAVE TO BE. WE HAVE A GULF WHICH IS ONE OF THE LARGEST HISTORICALLY THAT WE'VE EVER SEEN. CERTAINLY BY NATIONAL STANDARDS, ABOUT 46 STATES ARE FACING THE PROBLEMS TO ONE DEGREE OR ANOTHER, EXCEPT THOSE STATES THAT HAVE AN ABUNDANCE OF NATURAL RESOURCES. BUT OUR OVERALL DEFICIT IS OVER 20% OF OUR BUDGET FOR THE BIENNIUM. THAT 8.7 BILLION. THAT IS OVER 20%. THAT IS A LARGE GAP THAT HAS TO BE CLOSED. THAT'S WHY I THINK WE ULTIMATELY WILL NEED PAINFUL CUTS THAT WILL HAVE TO BE NONTAX REVENUES, AND THERE WILL HAVE TO BE SOME TAXES IN ORDER TO CLOSE THAT GAP AND BORROWING. ALL OF THOSE PIECES WILL BE THE LEGS OF THE STOOL THAT WILL FINALLY ISN'T THIS AGREEMENT WHEN IT WAS FINALLY REACHED. >> SINCE I WAS BROW-BEATING DAN ABOUT REPUBLICANS AND TAX CREASES. LET ME TALK TO YOU ABOUT SPENDING CUTS. THERE ARE AN AWFUL LOT OF PEOPLE THAT FEEL THE DEMOCRATS AND DEMOCRATIC LEADERS CAN'T GET THEIR RANK AND FILE FOLKS IN LINE FOR SPENDING CUTS, BECAUSE FOR SO LONG THE DEMOCRATIC PARTY HAS BEEN WEDDED TO SOCIAL SERVICE PROGRAMS AND LABOR. THAT'S YOUR CONSTITUENCY SO YOU DON'T TO CUT ANY PROGRAMS OF ANY SIZE THAT ARE GOING TO BE MEANINGFUL IN TERMS OF RESOLVING THE DEFICIT. >> DAN TALKED ABOUT MIDDLE INCOME TAX CUTS, THOSE ARE MIDDLE INCOME PEOPLE WE ARE CONCERNED ABOUT. THE FUNDAMENTAL DIFFICULTY WE FACE IS MOST OF THE PEOPLE WHO NEED GOVERNMENT SERVICES ARE LOW INCOME PEOPLE AND THEY ARE NOT THE SAME PEOPLE WHO PAY THE TAXES TO SUPPORT THE GOVERNMENT IN LARGE MEASURE. SO THAT'S ONE OF THE REASONS THAT THE USERS OF STATE SERVICES, THOSE SERVED BY THE PROGRAMS, ARE GENERALLY PEOPLE WHO DO NOT PAY A LOT -- AT LEAST IN THE AGGREGATE THEY MAY PAY A LOT BUT INDIVIDUALLY THEY MAY NOT PAY STATE TAXES. TAT THAT'S OUR DIFFICULTY. WE BELIEVE THAT HIGHER EDUCATION IS VERY IMPORTANT TO SUPPORT OUR HIGHER EDUCATION SYSTEM THROUGH THE COMMUNITY COLLEGE AND THE UNIVERSITY LEVEL. THE ONLY WAY TO KEEP COMPETITIVE IS TO HAVE THE HIGHEST EDUCATION WE CAN HAVE. K-12 THE GOVERNOR ACKNOWLEDGED SHE DOESN'T WANT TO CUT MUNICIPAL AID. NO ONE WANTS TO CUT THAT, BECAUSE THEN YOU RAISE THE PROPERTY TAXES, MANY PEOPLE FIND THAT MORE ONEROUS THAT MANY OF THE STATE TAXES WE PAY. IT'S A DIFFICULT PROCESS. >> I THINK THE THING THAT HAS INTRIGUED ME SINCE THE BEGINNING OF THE YEAR IS YOU ALL SAID AT THE BEGINNING OF THE YEAR IT WASN'T A NORMAL TIME OR NORMAL YEAR AND EVERYBODY IN THE PUBLIC KNOWS THAT, TOO. IT'S PROBABLY THE WORST ECONOMY IN DECADES, PROBABLY IN OUR LIFETIME FOR MANY PEOPLE WHOSE HAIR IS AS GRAY AS MINE AND YOUNGER. BUT, YET, BOTH PARTIES, IT SEEMS TO ME HAVE FALLEN BACK INTO BUSINESS AS USUAL. REPUBLICANS DON'T WANT TAX INCREASES, DEMOCRATS DON'T WANT TO MAKE ANY CUTS. IT'S LIKE YOU ARE OPERATING UNDER A BUSINESS AS USUAL MODALITY IN A YEAR THAT IS VERY UNIQUE, SPECIAL, DANGEROUS, AND IT NEEDS PEOPLING TO ACT PROFILES IN COURAGE, IF YOU WILL AND I DON'T SEE A LOT OF IT. >> STEVE, I ACTUALLY THINK THAT'S PRETTY ACCURATE. I THINK THERE'S ONLY BEEN ONE PERSON IN THE ENTIRE STATE GOVERNMENT WHO HAS REALLY SHOWN THE GUTS TO COME FORWARD WITH TOUGH CHOICES AND THAT'S GOVERNOR RELL. WE IN THE LEGISLATURE HAVEN'T DONE THE JOB WE NEEDED TO DO TO GET THE BUDGET PASSED. GOVERNOR RELL CAME OUT WITH HER INITIAL BUDGET THAT MADE EVEN DEEPER CUTS, A LOT OF WHICH I DON'T THINK ANY OF US WOULD REALLY WANT TO MAKE. SO GOVERNOR RELL REALLY HAS BEEN THE ONE TO STAND UP AND SAY THERE IS A WAY TO DO THIS. NOT A WAY THAT ANY OF US WANT TO DO IN TERMS OF CLOSING THE DEFICIT. >> YOU DON'T AGREE WITH THAT. >> I DON'T AGREE. I DON'T THINK THE GOVERNOR'S PERFORMANCE HAS BEEN A PROFILE IN COURAGE. TO PRESENT A BUDGET THAT WE THINK SHE BACKED INTO BY SAYING WHAT'S THE LARGEST DEFICIT WE CAN ACKNOWLEDGE BY JUST HAVING FEE INCREASES AND MODERATE CUTS, AND EVEN THE CUTS SHE PRESENTED LATER, THOSE ONLY CAME IN THE CONTEXT OF THE FACT THAT THE SENATE HAD ALREADY PASSED THE BUDGET RECONCILIATION CONSENSUS BILL AND HER HAND WAS FORCED. BUT WE HAD BEEN ASKING PRIVATELY FOR A WHILE AND SHE DID NOT COME TO THE TABLE. I DON'T THINK HER PERFORMANCE HAS SHOWN REAL LEADERSHIP. SHE IS PERSONALLY THE MOST POPULAR GOVERNOR IN THE COUNTRY AND REALLY HAS AN OPPORTUNITY THAT SHE'S GOING TO HAVE TO EXPEND SOME OF HER POLITICAL CAPITAL IN ORDER TO HELP US THROUGH THIS CRISIS. >> THERE HAVE BEEN OTHER YEARS WHEN A BUDGET WASN'T DONE IN TIME FOR THE CLOSE OF THE SESSION, BUT SOMETIMES IT'S LITERALLY THAT THE CLOCK HAS RUN OUT, THAT BUDGET NEGOTIATIONS WERE MOVING TOWARD A RESOLUTION, NOT QUITE THERE, A FEW THINGS HAD TO GO ARGUED AND IRONED OUT. AND A WEEK OR SO AFTER THAT, A BUDGET WAS, AT LEAST, AGREED TO. BUT I GET THE SENSE THAT THERE WAS NOTHING HERE. THERE WAS MILLING AROUND FOR A FEW WEEKS BEFORE THE END OF THE SESSION, ON AND OFF NEGOTIATIONS, BUT NOTHING REALLY FIRM. SO WHERE DO YOU GO NOW? >> IT WAS MORE LIKE 1991, OR 2003, WHEN WE WENT A LITTLE DEEPER INTO -- >> YEAH, SO WHERE DO YOU GO NOW, THOUGH? YOUR LEADER, SENATOR WILLIAMS SAID YESTERDAY THE PUBLIC DESERVES TO HAVE A BUDGET IN PLACE BY THE START OF THE FISCAL YEAR, JULY 1ST. THAT'S ONLY A MONTH AWAY. HOW CAN HE MAKE A PROMISE LIKE THAT? WITH ANY CREDENCE. >> THE REGULAR SESSION IS OVER, AND THERE ARE NO OTHER COMPETING BILLS OUT THERE, AND WE WILL BE FOCUSED EXCLUSIVELY ON THE BUDGET. >> LAWMAKERS CAN'T WALK AND CHEW GUM AT THE SAME TIME. >> BUT EVERYBODY IS ON DIFFERENT COMMITTEES DEALING WITH A WHOLE ARRAY OF SUBJECTS. >> WHEN DOES THAT ALL BEGIN. >> IN EARNEST NEXT WEEK, THE WEEK OF THE 8TH, BY MONDAY, I THINK PEOPLE WILL BE FULLY ENGAGED WITH THE TARGET OF HAVING A BUDGET BY THE END OF THE FISCAL YEAR, BY THE END OF JUNE. >> AND DO YOU WANT TO BET THAT BY JULY 1 THERE WILL BE A BUDGET IN PLACE. >> I ENDORSE THAT HOPE AND EXPECT THAT TO BE THE CASE. >> YOU DON'T WANT TO BET ANY MONEY ON IT. >> NO. I DON'T, BUT THERE ARE BETTING REVENUES THAT IMPORTANT TO THE STATE BUT I DON'T BET. >> WHAT DO YOU THINK, DO YOU THINK THE CHANCES ARE GOOD OR BAD BY JULY 1? >> I THINK IT'S ALL GOING TO DEPEND ON THE WILLINGNESS OF PEOPLE TO COMPROMISE. I HAVE BEEN IN THESE BUDGET NEGOTIATIONS, AND THERE HAS NOT BEEN A LOT OF FIRM COMMITMENTS MADE. WE ARE GOING TO USE THE FEDERAL STIMULUS AND THE RAINY DAY FUND WHICH WILL CLOSE ABOUT HALF THE DEFICIT. BUT WHAT WE NEED TO DO IS WE HAVE TO RECONCILE THE FACT THAT THE OPINION IN THE QUINNIPIAC POLL SAYS BY A 3-TO-1 MARGIN THEY WANT SPENDING CUTS VERSUS TAX INCREASES. IN THE LEGISLATURE, WE HAVE A 2-TO-1 DEMOCRATIC MAJORITY, DEMOCRATS TO REPUBLICANS. THOSE ARE AT ODDS WITH EACH OTHER. WE NEED MODERATES IN BOTH PARTIES TO COME TO THE TABLE AND SAY LET'S LOOK AT THAT QUINNIPIAC POLL AND GET SERIOUS ABOUT CUTTING SPENDING. AND MY HOPE IS MODERATES IN BOTH PARTIES CAN COME TOGETHER AND MOVE THE BOUGHT FORWARD. THAT'S THE ONLY HOPE WE ARE GETTING. >> THEY DON'T REALLY WANT SPENDING CUTS OR TAXES. A GUY STOPPED ME IN DUNKIN' DONUTS, SAYING YOU HAVE TO PRESERVE MUNICIPAL AID, AND PROTECT THE PEOPLE IN THE NURSING HOME. >> AND I THOUGHT HE GETS IT AND AS I AM WALKING OUT HE SAYS, BY THE WAY, DON'T RAISE TAXES. >> NOBODY SAID IT WAS GOING TO BE EASY. THAT'S WHAT YOU WERE ELECTED FOR AS LEADERS. LESS THAN TWO MINUTES LEFT. >>> BUT DOES THERE NEED TO BE A GAME-CHANGING IDEA ON THE REVENUE SIDE TO SORT OF JUMP START THESE TAKES. >> IN A WAY THAT IS THE DIFFERENCE. WE DON'T HAVE A NEW SOURCE. IN 1991 THE BATTLE WAS OVER THE INCOME TACK. AT THIS POINT THERE'S NO SUCH THINK ON THE TABLE, IT'S JUST AN ADJUSTMENT THROUGH STRUCTURES IN SPENDING OR REVENUE, THERE'S NO SILVER BULLET OUT THERE. >> SAME QUESTION, WHAT DO YOU THINK. >> THE ANSWER IS GOING TO BE 100 LITTLE THINGS, NOT ONE BIG THING WHICH MAKES THIS SOMETHING WHERE THE DEVIL IS IN THE DETAILS, AND MARTY IS RIGHT, THERE'S NO ONE SILVER BULLET. >> WE THANK YOU FOR BEING WITH US, HANG IN THERE WE WILL BE BACK WITH OUR "REPORTERS ROUND TABLE." >> MY GUESTS THIS WEEK ARE SUSAN HAIGH OF THE ASSOCIATED PRESS AND CHRISTOPHER KEATING OF THE HARTFORD CURRENT. WE TALKED ABOUT LAWMAKERS TRYING TO ACHIEVE A BUDGET BY JULY 1ST. WE ARE GOING TO HAVE ONE MORE ON THE RECORD SHOW. THIS WAS DUE TO BE THE LAST OF THE SEASON, BUT WE WILL HAVE ONE ON JUNE 26TH TO SEE WHAT KIND OF PROGRESS OR LACK THEREOF HAS OCCURRED. >> THINK POSITIVELY. >> I AM GOING TO CALM DOWN NOW. WAS I A LITTLE HARD ON THOSE GUYS. >> YOU WERE. >> REALLY. >> WELL, NOT TOO HARD. >> YOU DON'T THINK THEY DESERVED IT? NOTHING HAPPENED, RIGHT. >> THAT IS TRUE. >> FORGET THE BUDGET FOR A MINUTE, WAS THIS SESSION PRODUCTIVE IN OTHER AREAS, OR WAS IT RATHER LACKLUSTER AS SOME PEOPLE SEEM TO FEEL. >> THE DEMOCRATS FEEL THEY MADE ACCOMPLISHMENTS, BUT A LOT OF THOSE THINGS PROBABLY AREN'T GOING TO SEE THE LIGHT OF DAY IF GOVERNOR RELL VETOES THEM AND THEY DON'T HAVE ENOUGH VOTES TO OVERRIDE. THEY MANAGED TO OVERTURN THE DEATH PENALTY BUT SHE'S VETOING THAT. THEY PASS ON THE HEALTH CARE REFORM BILLS, BUT SHE WILL PROBABLY VETO THOSE AS WELL. >> BETWEEN THE VETOES AND DIFFERENT BILLS THAT MADE IT OUT OF ONE CHAMBER AND NOT THE OTHER, VERY LITTLE WAS DONE, THEY BANNED CHIMPANZEES, SO IF YOU HAVE ONE IN YOUR BACKYARD, YOU CAN'T HAVE THAT. >> ARE WOLVERINES BANNED? >> THEY ARE ON THE LIST. YOU CAN'T HAVE REINDEER IN YOUR BACKYARD EXCEPT AS CHRISTMAS TIME YOU ARE OKAY. >> WHAT I WAS GOING TO ASK IS, DO YOU THINK THAT LACK OF PROGRESS, IF YOU WILL, WAS CAUSED IN PART BY THE FACT THERE'S NO MONEY TO SPEND ON ANYTHING? >> THAT'S A HUGE PROBLEM. EVERYTHING THAT'S TIED UP IN THE BUDGET, THERE'S SO MANY ISSUES RIGHT NOW, THEY ARE JUST HANGING OUT THERE, WE HAVE ABOUT 30 NURSING HOMES THAT DON'T HAVE CONTRACTS, AND THERE'S A LOT OF QUESTION WHETHER THESE FOLKS ARE GOING ON STRIKE, LOOKING FOR THE CASH. WE CAN'T SOLVE THAT PROBLEM AND MANY OF THEM WE COULDN'T SOLVE BECAUSE THE MONEY IS JUST NOT THERE. >> ON TOP OF THAT, THERE WERE ONES THAT REALLY DIDN'T HAVE ANYTHING TO DO WITH MONEY, BANNING SMOKING IN THE CASINOS, DECRIMINALIZING MARIJUANA, JUST A WHOLE SERIES OF OTHER BILLS THAT MADE IT THROUGH ONE CHAMBER AND NOT THE OTHER. ELECTION DAY REGISTRATION WHERE YOU VOTE AND REGISTER ON THE SAME DAY. THERE WAS A SERIES OF THINGS THAT WEREN'T MONEY ISSUES THAT COULDN'T MAKE IT ON IT OF BOTH CHAMBERS SIMULTANEOUSLY. >> I THINK THE CHARACTERISTIC THIS YEAR WERE LENGTHY DEBATES. SOME MIGHT CALL THEM FILIBUSTERS, RUN OFTEN TIMES BY REPUBLICANS. A BILL WOULD COME OUT THAT THE DEMOCRATS WANTED AND THEY WOULD TALK IT, TALK IT, TALK IT. HOPING THAT THE DEMOCRATS WOULD SAY, ALL RIGHT, TAKE IT OFF THE FLOOR WE WILL LOOK AT IT ANOTHER TIME. IN OTHER CASES THE DEMOCRATS SAID, LOOK, WE ARE GOING TO BULL THROUGH THIS, WE GOT THE VOTES AND WE ARE GOING TO VOTE IT. WHAT WAS THE REASON? THERE SEEMED TO BE MORE OF THESE LENGTHY DEBATES ON BILLS THAT WEREN'T THAT COMPLICATED, QUOTE THEY WENT ON FOR HOURS. >> THEY WANT TO RUN OUT THE CLOCK AND USE UP TIME SO THEY DON'T VOTE ON BILLS THAT HE CONSIDERS TO BE BAD BILLS. THERE ARE A LOT OF BILLS THAT THE REPUBLICANS FEEL WOULD BE BAD FOR BUSINESS, AND THEY FIGURED IF THEY USED UP TIME ON SOMETHING ELSE LIKE LABELING MENUS TO MAKE SURE THEY HAVE CALL LORIC COUNTS ON THERE, THEN THAT WOULD GIVE THEM LESS TIME TO BRING UP THESE OTHER THINGS. >> WHEN YOU HAVE ONLY 37 VOTES IN THE HOUSE AND 12 IN THE SENATE, I GUESS IF YOU SAY YOU ARE A REPUBLICAN TALKING THINGS OUT THAT THEY BE YOUR OWN STRATEGY. >> THEY SPENT NINE HOURS ON THE SICK LEAVE BILL. A NINE-HOUR DEBATE IN THE HOUSE IS PRETTY LENGTHY. A TWO OR THREE-HOUR DEBATE MIGHT SEEM LONG TO THE GENERAL PUBLIC BUT THAT'S NOT THAT UNUSUAL. BUT NINE HOURS IS A LONG TIME. >> YOU HAVE TO START ASKING YOURSELF IS THERE ANY BILL IN THE WORLD THAT IS SO COMPLICATED IT CAN'T BE ARGUED OUT THREE OR FOUR HOURS MAXIMUM. >> I THINK THE DEATH PENALTY WAS 11 HOURS IN THE SENATE, WHICH IS EVEN HARDER. >> THAT'S A PHILOSOPHICAL DEBATE. THAT'S NOT AN ISSUE. IT'S NOT LIKE ELECTRIC DEREGULATION. IT'S A PHILOSOPHICAL DEBATE. >> YEAH. ESPECIALLY WHEN YOU ONLY HAVE 36 PEOPLE IN THE HOUSE, YOU HAVE FIVE TIMES AS MANY PEOPLE. >> LET'S GO TO BUDGET MESS. JULY 1ST IS COMING, THE START OF THE FISCAL YEAR, THINGS GET TOUGHER AFTER THAT, IN TERMS OF RUNNING THE STATE IF YOU DON'T HAVE A BUDGET IN PLACE. YOU HEARD THE TWO LAWMAKERS AT THE TOP OF THE SHOW, DO YOU SEE THE EVIDENCE IF THERE'S ANY KIND OF -- THE WIND HAS CHANGED AND THESE FOLKS ARE READY TO NEGOTIATE OR NOT? >> I GET THE IMPRESSION THEY ARE STARTING BACK FROM SCRATCH. THAT'S KIND OF WHAT THEY TOLD US AFTER THE SESSION, NOW WE HAVE A BETTER IDEA OF WHERE GOVERNOR RELL WANTS TO CONSULT SPENDING, BECAUSE SHE CAME OUT WITH A SUPPLEMENTAL BUDGET. IT SEEMS LIKE THE LAST SIX MONTHS DIDN'T HAPPEN AND THEY ARE BACK TO SQUARE ONE. >> BUT NOW IS BACK TO WHERE WE STARTED. THEY ARE BOTH -- REALLY HAVE THEIR HEELS DUG IN ON SPENDING CUTS, VERSUS TAX INCREASES, AND HOPEFULLY THEY WILL GET TO SOME KIND OF CONCLUSION, BUT DAN DEBICELLA SAID MODERATES ARE GOING TO HAVE TO COME FORWARD AND BROKER SOME DEAL. >> DO YOU AGREE WITH THAT? >> AT THE MOMENT IT DOESN'T LOOK VERY GOOD, BUT I HAVE BEEN THERE FOR A WHILE AND SOMETIMES IT'S SHOCKING HOW THEY DO COME TOGETHER ON THINGS. ONCE THEY COME TOGETHER, THINGS CAN MOVE QUICKLY. I WOULD NOT RULE OUT JUNE 30TH. ALL I AM SAYING IS RIGHT NOW IT DENT LOOK VERY GOOD. >> IS THE PROSPECT THERE ALSO FOR A LONG SUMMER FOR TRYING TO GET THIS DONE? WHAT I HEARD TODAY IS THESE PEOPLE STILL. THEIR FEET PLACED EXACTLY WHERE THEY WERE IN JANUARY. I DON'T KNOW WHAT IT'S GOING DO TAKE TO GET THEM OUT OF THOSE POSITIONS. SO WHEN YOU THINK IT COULD EXTEND WELL INTO THE SUMMER, THE INCOME TAX DEBATE DID IN 1991. >> YOU HOPE NOT. MANY HAVE SAID THERE HASN'T BEEN THE SENSE OF URGENCY YOU THINK WOULD BE THERE BASED ON THE SIZE OF THE DEFICIT. THE SENSE OF URGENCY IS NOT THERE. IT'S POSSIBLE THAT IT HASN'T COMPLETELY CAUGHT THE PUBLIC'S ATTENTION. IN OTHER WORDS, IF YOU START CLOSING STATE PARKS, THINGS LIKE THAT, THAT REALLY GETS THE PUBLIC'S ATTENTION. >> ON THIS ISSUE OF SENSE OF URGENCY. WHAT I GET IS THEY DON'T HAVE A CLUE AS TO HOW TO RESOLVE THIS. THE PROBLEM IS SO BIG THEY HAVE NEVER FACED ANYTHING LIKE IT. IT'S NOT SO WERE THEY ARE DRAGGING THEIR FEET BECAUSE THEY ARE PROCRASTINATORS, IT'S THEY DON'T HAVE A CLUE HOW TO DO IT. >> BUT IF YOU TALK TO EACH PARTY, THEY SEEM TO THINK THEY HAVE COME UP WITH THE SOLUTION AND REPUBLICANS SAY WELL, WE HAVE PRESENTED A BUDGET THAT SOLVES IT, AND THE DEMOCRATS WILL SAY, WELL, WE PRESENTED A BUDGET THAT SOLVES IT. IT COMES DOWN TO THE PHILOSOPHICAL DIFFERENCES THAT I DON'T THINK WE HAVE SEEN SO STARKLY CONTRASTED BEFORE. IT COMES DOWN TO THIS IDEA OF WHERE WE NEED TO PROTECT SOCIAL SERVICES VERSUS WE CAN'T AFFORD THIS ANY MORE. >> WHAT DOES GOVERNOR RELL HAVE TO DO TO GET THINGS MOVING? DOES SHE HAVE A RESPONSIBILITY? >> YES, THE GOVERNOR HAS TO GET IMMEDIATELY IN THE ARENA AND GET AT THE TABLE. HERE PEOPLE TELL US THAT SHE USUALLY DOESN'T COME IN UNTIL THE DEAL IS VERY, VERY CLOSE. HOWEVER, SHE'S THE LEADER. SHE'S AMAZINGLY POPULAR AND SOMETIMES ONLY GOVERNORS CAN MOVE THE BALL FORWARD. >> FOLKS, WE WILL SEE YOU SOON "ON THE RECORD."