TEST TEST >> I’M STEVE KOTCHKO. WELCOME TO ANOTHER EDITION OF “ON THE RECORD." FIRST, A LOOK AT THIS WEEK’S STATE HEADLINES. THE END OF THE LEGISLATIVE SESSION NEARS, BUT STILL NO AGREEMENT BETWEEN GOVERNOR RELL AND LAWMAKERS ON A NEW STATE BUDGET AND DEFICIT REMEDY. WE’LL EXPLORE THAT ISSUE IN OUR REPORTERS ROUNDTABLE. SMALL TOWNS IN CONNECTICUT FEAR THEIR CONCERNS WILL GO UNHEEDED IN THE CURRENT ECONOMIC CRISIS. WE’LL TALK WITH TWO SMALL TOWN OFFICIALS IN OUR NEWSMAKER SEGMENT. STATE CORRECTION COMMISSIONER THERESA LANTZ AND STATE TAX COMMISSIONER PAMELA LAW ANNOUNCE THEIR RETIREMENTS, AND THE STATE UNEMPLOYMENT RATE JUMPS TO 7.9%, WITH THE LOSS OF NEARLY 12 THOUSAND JOBS IN THE LAST MONTH. THOSE ARE THE HEADLINES, PLEASE STAY WITH US. >> MY GUESTS THIS WEEK IN OUR NEWS MAKER SEGMENT ARE SUSAN BRANSFIELD FIRST SELECTWOMAN, PORTLAND JOHN ELSESSER, TOWN MANAGER, COVENTRY I TRIED TO SAY THAT NAME CORRECTLY. I REMEMBER THAT'S THE WAY THE FOLKS IN COVENTRY LIKE IT PRONOUNCED. >> THAT'S RIGHT. >> FIRST QUESTION ABOUT BUDGET AND HOW IT AFFECTS SMALL TOWNS. WE DON'T KNOW WHAT'S GOING TO HAPPEN WITH THE BUDGET. IT'S ALLEGEDLY BEING CRAFTED NOW, IT COULD TAKE A WEEK, A MONTH, SIX MONTHS, BEFORE IT'S ALL HAMMERED OUT. HOW CONCERNED ARE SMALL TOWNS ABOUT WHAT EVENTUALLY IS GOING TO BE IN THAT BUDGET? I GUESS, WHAT DO YOU FEAR MOST? >> WE FEAR MOST NOT GET A BUDGET. WHAT'S IMPERATIVE AND SO IMPORTANT TO US, WE KNOW WHAT OUR BUDGETS ARE GOING TO BE. OUR LOCAL BUDGETS HAVE PASSED FOR THE MOST PART AND THE STATE LEGISLATURE AND THE GOVERNOR NEED TO PASS A BUDGET. WE NEED TO KNOW HOW MUCH MONEY THERE WILL BE IN CITIES AND TOWNS. >> WE ARE SENDING OUT OUR TAX BILLS WITHIN THE NEXT TWO WEEKS. IT'S PREDICATED ON SOME PROMISES THAT WERE MADE SUCH AS FREEZING EDUCATION AT LAST YEAR'S LEVEL. ALL TOLD, LOCAL AID IS DOWN ABOUT 1%. YOU KNOW, WE UNDERSTAND THE POSITION THE STATE IS IN, AND FEEL THAT THAT'S OUR FAIR SHARE OF -- TOWARDS A GOAL. BUT WE'RE NOT BEING INVITED TO SIT AT THE TABLE IN ANY OF THE DISCUSSIONS THAT ARE GOING ON RIGHT NOW. THEY HAVE FORM 3458LY MET AND NEGOTIATED WITH THE STATE EMPLOYEE'S UNION BUT WE ARE NOT PART OF THE DISCUSSIONS. WE THINK THAT'S IMPERATIVE THERE ARE SOME CRITICAL ISSUES THAT IF DONE IMPROPERLY COULD REALLY IMPACT US. RIGHT NOW THEY ARE TALKING ABOUT REDUCING THE EDUCATION COST SHARING GRANT TO TOWNS BY 14%. AND THEN IN LIEU OF THAT, GIVING A DIRECT CHECK TO THE BOARD OF EDUCATION IN THE SAME AMOUNT. ALTHOUGH OUR BUDGETS ARE ADOPTED, WE HAVE A LEGAL OBLIGATION TO SPEND THE AMOUNT THAT WAS APPROVED. SO LEGALLY, THAT 14% DIRECT CHECK TO THE BOARD OF EDUCATION IS A BONUS, AND WE WILL BE 14% SHORT IN REVENUE. IN THE TOWN OF COVENTRY, IT'S $1 MILLION SHORT IN REVENUE. SO THEY HAVE TO ENACT THAT PROPERLY. IF WE ARE SITTING AT THE TABLE. WE CAN MAKE SURE THEY UNDERSTAND SOME OF OUR ISSUES. >> WEREN'T THERE ASSURANCES THE BEGINNING OF THE YEAR BY THE GOVERNOR AND DEMOCRATS AS WELL, THAT YOU WOULDN'T BE GETTING ANYTHING EXTRA, BE STAYING THE SAME THIS. >> TRUE. VERY TRUE. WE WERE TOLD BY SENATE PRESIDENT WILLIAMS THAT EDUCATION MONIES WILL REMAIN THE SAME, AS WE ARE RECEIVING FOR THIS FISCAL YEAR. THE CONCERN THAT JOHN IS POINTING OUT IS CITIES AND TOWNS HAVE PASSED BUDGETS BASED ON THE GOVERNOR'S NUMBERS FOR EDUCATION COST SHARING. AND WHAT IS BEING TALKED ABOUT RIGHT NOW IS THIS REDUCTION OF 14% OF THAT E.C.S. GRANT AND IT'S COMING DIRECTLY TO THE BOARD OF ED AS A DIRECT CHECK. >> JUST EXPLAIN TO FOLKS WHY THAT'S A PROBLEM, SOME FOLKS WOULD STILL SAY IT'S STILL PART OF THE TOWN GOVERNMENT ESSENTIALLY. >> BECAUSE ONCE YOU PASS A BUDGET AND THE NUMBER IS FOR THE BOARD OF EDUCATION, THAT'S THE NUMBER YOU LEGALLY MUST GIVE TO THE BOARD OF EDUCATION, THAT'S WHAT YOU MUST DO. SO IF THE MONEY ISN'T THERE, THE 14%, WHICH COULD BE NEARLY MILLIONS OF DOLLARS, DEPENDING ON THE CITY OR THE TOWN, THEN WHERE DO YOU GET THAT MONEY? YOU HAVE ALREADY PASSED YOUR MILL RATE. YOU HAVE ALREADY PREDICATED YOUR BUDGET ON THESE REVENUES. IF IT'S NOT THERE, WHAT DO YOU DO. >> IT'S COMPLICATED, BUT THE EASIEST WAY TO SAY IT, IT'S BYPASSING THE TOWN'S ACCOUNTING SYSTEM ALTOGETHER. SO UNLESS THEY ADOPT A RESTRICTION THAT REDS TOWN'S APPROPRIATIONS, LEGALLY ADOPTED BUDGETS IN THE AMOUNT OF THAT CHECK, WE NOT ONLY ARE SHORT, BUT WE HAVE TO COME UP WITH THOSE FUNDS, SO IT'S A CRITICAL ISSUE AND IT'S COMPLICATED ENOUGH THAT WE DON'T THINK THEY FULLY UNDERSTAND. >> LET ME ASK YOU, YOU ARE BOTH OFFICIALS OF COSTS, THE COUNCILS OF SMALL TOWN. YOU HAD AN EVENT AT THE CAPITOL EARLIER THIS WEEK. A LOT OF ANGER EXPRESSED AT THAT CONFERENCE BECAUSE THE DAY BEFORE, THE STATE HOUSE OF REPRESENTATIVES EVEN THOUGH IT WASN'T ON THEIR AGENDA, BROUGHT OUT THIS PROBATE REFORM BILL AND PASSED IT HANDILY AND SENT IT TO THE SENATE BEFORE YOU FOLKS HAD A CHANCE TO COME UP HERE AND LOBBY LAW MAKE OTHERS ABOUT YOUR CONCERNS ON THAT BILL. WHAT ARE YOUR CONCERNS? BECAUSE EVEN THE GOVERNOR SUPPORTS THE IDEA OF REFORMING THE PROBATE COURT SYSTEM, BECAUSE APPARENTLY, IT'S NEARLY BANKRUPT. >> I THINK WE ARE ALL IN FAVOR OF PROBATE REFORM. BUT, AGAIN, WE WEREN'T BROUGHT INTO THE DISCUSSION. THERE'S STUDIES THAT HAVE SHOWN THAT IMPROPERLY DONE PROBATE REFORM COULD ACTUALLY COST THE STATE MORE MONEY. IF THEY WOULD JUST ALLOW OR SET BROAD GUIDELINES, AND ALLOW US TO DEVELOP OUR OWN PLANS, I GUESS WHAT WE ARE OPPOSED TO IS MANDATED REFORM, ARBITRARY CHOOSING A POPULATION OVER 50,000. WE'VE ALREADY, IN OUR TOWN, COMBINED WITH THE TOWN OF MANSFIELD, SO WE ARE PROBABLY ABOUT 35,000, AND WE WERE TOLD WE HAD TO GET TO 50,000, OR GET TO SOME COST PER CAPITA THRESHOLD. I'M SURE WE COULD DO THAT. THE TOWN OF BRISTOL AND PLAINVILLE JUST MERGED COURTS. BUT THE WAY IT'S GOING IF THEY ARE NOT CAREFUL THEY ARE GOING TO HAVE TO BUILD AND CONSTRUCT NEW COURTHOUSES. YOU HAVE TO LOOK AT WHAT PHYSICAL FACILITIES ARE AVAILABLE IN THE TOWN HALL. AND IF THE COURT IS TOO LARGE THERE WON'T BE SPACE. >> THESE COURTS NOW NUMBER 117, AND THEY WANT TO TAKE IT DOWN TO 45 OR 50. IN YOUR VIEW, WITH WHEN THAT HAPPENS, THOSE COURTS ARE GOING TO WIND UP BEING IN LARGER COMMUNITIES AND AWAY FROM THE SMALL TOWNS. >> I THINK THE CONCERN IS OUR CONSTITUENTS. THE CONCERN IS WHEN YOU HAVE A SITUATION, WHEN YOU HAVE A WILL THAT'S BEING PROBATED. IF YOU HAVE AN ADOPTION THAT NEEDS TO OCCUR, IF YOU HAVE SOME OTHER MATTER THAT'S VERY CLOSE TO YOUR FAMILY, YOU NEED TO BE ASSURED THAT YOU ARE LISTENED TO IN A VERY FRIENDLY AND HELPFUL ENVIRONMENT. HOW THAT FORMAT TAKES PLACE IS STILL TO BE DETERMINED. HOW MANY PROBATE COURTS THERE WILL BE AND HOW THEY WILL BE ARRANGED. AND WHAT IS KEY IS THAT THE CITIES AND TOWNS THAT ARE PART OF THIS SYSTEM ARE AT THE TABLE DECIDING HOW THAT PROBATE COURT IS GOING TO BE, NUMBER ONE, PUT TOGETHER, AND THEN HOW IT'S ADMINISTERED. IT'S ALWAYS WHAT'S BEST FOR THE PEOPLE THAT LIVE IN CONNECTICUT. >> LET ME ASK YOU THIS QUESTION, YOU HAVE SAID IN RESPONSE TO THE FIRST FEW QUESTIONS, YOU WEREN'T AT THE TABLE, YOU WEREN'T LISTENED TO. CAN I ASK, DO YOU THINK THAT SMALL TOWNS PER SE ARE NOT BEING LISTENED TO, IN THIS DISCUSSION AT THE CAPITOL, OR IS IT ALL CITIES AND TOWNS? >> WE THINK IT'S PROBABLY ALL, ALTHOUGH SOME OF THE LARGER CITIES MAY HAVE THEIR OWN ON-STAFF LOBBYIST. THEY MAY HAVE THEIR OWN VOICE. I THINK THE MUNICIPAL OFFICIALS HAVE GONE OUT OF THEIR WAY TO GO UP AS MANY TIMES AS THEY ARE POSSIBLY ABLE TO AND STILL PERFORM THE DAY-TO-DAY OPERATIONS OF THEIR TOWN. WE'VE BEEN, YOU KNOW, MAKING THE HARD CHOICES AND REDUCING EXPENSES TO IMMEDIATE THE BUDGETARY GUIDELINES, SO WE ALL HAVE BEEN -- AROUND THE STATE, I THINK WE -- >> WELL, WE ARE PARTNERS. STATES, CITIES, TOWNS WE ARE ALL IN THIS TOGETHER. WE NEED TO CONTINUE TO RECOGNIZE THAT AND WORK TOGETHER. WE IMPLEMENT MANY OF THE STATE LAWS. ALL OF THE STATE LAWS THAT PERTAIN TO CITIES AND TOWNS. HOW IT'S DONE IS THE KEY. THE DEVIL IS IN THE DETAILS. YOU HAVE TO BE SURE THAT THE GOOD INTENTIONS OF OUR LEGISLATORS AND OUR GOVERNOR ARE IMPLEMENTED PROPERLY AT THE CITY AND TOWN LEVELS. WE ARE THE ONES ON THE FRONT LINES MAKING SURE THAT THE ROADS ARE FIXED THAT THE SCHOOLS ARE WORKING, THAT THE HEALTH DEPARTMENT IS WORKING. THOSE ARE THE THINGS THAT MEAN THE MOST TO US AS CITIZENS. THAT'S WHY WE HAVE TO BE PARTNERS. >> BASED MY EXPERIENCE COVERING THE CAPITAL FOR A FEW DECADES, I GET THE IMPRESSION WHEN LAW MAKERS, ESPECIALLY LIKE THEY ARE NOW OVER A BUDGET, HAVE PEOPLE COMING AT THIS FROM ALL DIRECTIONS, INTEREST GROUPS. WHETHER IT'S FAIR OR NOT, THEY WIND UP PUTTING CITIES AND TOWNS INTO THAT CATEGORY. YOU ARE JUST ANOTHER INTEREST GROUP THAT IS YELLING IN THEIR FACE. THE TAKE I GET FROM YOU FOLKS IS YOU CAN'T LOOK AT US LIKE ANOTHER INTEREST GROUP, WE ARE SOMEHOW DIFFERENT. >> WE ARE TOGETHER. WE ARE ONE. >> WE ARE PARTNERS IN GOVERNMENT. >> ABSOLUTELY. >> BUT THEY DON'T SIGH IT THAT WAY. >> WELL, WE CONTINUE TO WORK WITH THEM AND TO ENLIGHTEN THEM. >> THERE'S ALSO A BIG PUSH IN STATE GOVERNMENT, THERE HAS BEEN FOR SOME TIME, ABOUT GETTING CITIES AND TOWNS, SMALL TOWNS, MIDDLE SIZED TOWNS, LARGE TOWNS, TO DO MORE TOGETHER, TO CONSOLIDATE, TO, YOU KNOW, IF YOU HAVE WANT TO BUY A TRUCK, FIVE SMALL TOWNS SHOULD GO IN ON IT TOGETHER AND BUY A TRUCK. I GUESS THE DIFFERENCE THAT I SENSE AT YOUR LEVEL, VERSUS THEIR THINKING, THEY DON'T FEEL YOU HAVE MOVED FAST ENOUGH, SO THEY WANT TO PUSH YOU IN THAT DIRECTION, WHERE YOU FOLKS MORE OR LESS FEEL, LET US DO IT ON OUR OWN. IF THAT'S THE CASE, ARE YOU MOVING AT A FAST ENOUGH PACE TO SATISFY THEM? >> OBVIOUSLY IF THEY ARE NOT SATISFIED, THE ANSWER TO THAT IS I GUESS WE ARE NOT MOVING FAST ENOUGH. BUT I AM NOT SURE THY ARE AWARE OF ALL WE ARE DOING. IN THE LAST SEVERAL YEARS, TOWNS ARE LOOKING AT ALL SORTS OF THINGS TO COOPERATE. JUST LAST WEEK WE BORROWED A HYDROSEEDER FROM ANOTHER TOWN TO MAKE A PRODUCT GO FASTER AND MORE EFFICIENTLY. WE DO AN AWFUL LOT. I AM NOT SO SURE WE DO A GOOD JOB BRAGGING ABOUT IT. >> SOMETIMES THERE'S STATE LAWS THAT IMPEDE THE ABILITY TO WORK TOGETHER. YOU MENTIONED THE PURCHASING OF A TRUCK AMONG TOWNS. I KNOW THERE WAS AN INCIDENT WHERE THERE WERE SOME TOWNS THAT WANTED TO PURCHASE A VEHICLE TOGETHER AND THEY COULDN'T BECAUSE THERE ARE STATE LAWS THAT PROHIBIT THAT TYPE OF TRANSACTION TO OCCUR. THAT'S WHY, I REPEAT, WE NEED TO BE AT THE TABLE TOGETHER TO POINT OUT, YES THERE ARE DEFINITELY MATTERS, ISSUES, THINGS THAT WE CAN DO TOGETHER, THAT TOWNS CAN HELP ONE ANOTHER WITH. BUT WE NEED TO BE SPEAKING WITH OUR STATE OFFICIALS, TO MAKE SURE THAT LAWS ARE IN PLACE, THAT THOSE THINGS CAN OCCUR. >> THEY SEEM TO WANT TO USE MORE OR LESS OF A CARROT AND STICK APPROACH HERE. THEY WANT TO SAY, WE WILL GIVE YOU EXTRA MOONY IF YOU WORK TOGETHER, BUT IF YOU DON'T WORK TOGETHER, YOU WILL NOT BE ELIGIBLE FOR THAT KIND OF THING. >> THAT'S PROBABLY OKAY. AGAIN, IF THEY SET THE BROAD PARAMETERS OF WHAT THEIR GOAL IS, A LOT OF TIMES WE CAN DEVELOP GOOD WAYS TO REACH THEIR GOALS. TWO YEARS AGO WE HAD THE REGIONAL INCENTIVE GOAL, AND IN OUR AREA, WE HAD A BUNCH OF TIME TO GET TOGETHER TO BUY EQUIPMENT FOR RAIL-TO-TRAIL MAINTENANCE, SO WE HAVE SEVEN OR EIGHT POUNDS SHARING EQUIPMENT TO TAKE CARE OF OUR TRAILS. WE WORKED TOGETHER FOR REGIONAL GEOGRAPHIC SYSTEMS. THERE'S A HOLE LIST OF GREAT PROJECTS THAT HAS BEEN DONE OH A REGIONAL BASIS. THAT DOES WORK, BUT WE HAVE TO SET WHERE THE GOAL IS AND FIGURE OUT HOW TO GET THERE. >> THE DIRECTOR, BART RUSSELL SAID AT THAT CONFERENCE I WAS MENTIONING EARLIER, THAT IN THE DEBATE OVER THE PROBATE COURT, SEVERAL LAWMAKERS SAID, LOOK, THE OLD SYSTEM WAS ANTIQUATED. WE HAVE A LOT OF SMALL COURTHOUSES OUT THERE, AND WE HAVE CHANGED THE SITUATION, AND THEY SAID, MAYBE SOMETIME IN THE FUTURE, THEY WILL SAY, YOU KNOW WHAT, TOWN GOVERNMENT IS ANTIQUATED, MAYBE WE NEED TO DO AWAY WITH TOWN GOVERNMENTS AND TOWNS. DO YOU EVER THINK THERE WILL COME A DAY WHEN THE LEGISLATURE SAYS, LOOK, 169 COMMUNITIES WORK THREE YEARS AGO. WE WANT YOU TO MERGE. WE WANT THIS TOWN AND THIS TOWN TO MERGE. AND IF YOU DON'T THERE WILL BE PENALTIES. >> THEY ARE VERY HARMFUL TO THE KIND OF LIFESTYLE WE HAVE IN CONNECTICUT, TOP DOWN, TELLING US WHAT TO DO, TELLING, SO TO SPEAK, THE CHILDREN WHAT TO DO. WE ARE THE STATE. WE ARE THE PARENTS, WE KNOW BETTER. WE AREN'T CHILDREN! WE ARE ALL ADULTS. AND THE SMALL COMMUNITIES IN CONNECTICUT, IN FACT, THERE'S 139 TOWNS IN CONNECTICUT THAT ARE UNDER 130,000 PEOPLE. THEY ARE WONDERFUL PLACES TO BRING UP YOUR FAMILIES AND WONDERFUL PLACES TO LIVE AND THEY WORK. OUR SMALLER COMMUNITIES DEPEND ON VOLUNTEERISM, AND THEY DEPEND ON GOOD NEIGHBORS AND WE DEPEND ON GETTING THINGS DONE EFFICIENTLY. IF ANYONE WONDERS, ACCOUNTABILITY, ACCOUNTABILITY IS ALIVE AND WELL IN SMALL TOWNS AND CITIES. THEY KNOW, THE CONSTITUENTS KNOW WHERE THOSE DOLLARS ARE BEING SPENT. >> USING YOUR FAMILY ANALOGY, ASIDE FROM BIG DADDY TELLING TOWNS WHAT TO DO, WOULD THERE EVER COME A TIME WHEN A FEW SMALL TOWNS ON THEIR OWN WOULD DECIDE THEY WANT TO MERGE, OR DO YOU THINK THE INDIVIDUALISM AMONG TOWNS IS TOO STRONG IN THIS STATE? >> I THINK IT IS A REAL POSSIBILITY. >> MERGER MIGHT BE A POSSIBILITY? >> YEAH, AND IT HAS HAPPENED. THE TOWN OF WINDHAM AND CITY OF WILAMANTIC MERGED IN THE LAST TWO DECADES. THERE ARE ALWAYS DISCUSSIONS. SUSAN SAID WHEN YOU HAVE 139 SMALL TOWNS, YOU ALSO HAVE A LOT OF INCUBATORS TO TRY THINGS OUT AND SHARE IDEAS. YOU KNOW, I THINK WE HAVE A GOOD RECORD OF SUCCESS. BUT I THINK THERE'S DIFFERENT TYPES OF MERGER, TOO, OR CONSOLIDATIONS. I THINK YOU MAY SEE MORE ADMINISTRATIVE MERGERS, WHERE YOU MAY HAVE TOWN FINANCE OPERATIONS RUNNING MULTIPLE TOWNS, BUT STILL HAVE THEIR ELECTED OFFICIALS. THAT'S GOING ON RIGHT NOW AND THE TOWN OF COLUMBIA IS CONTRACTING WITH THE FOUND OF MANSFIELD. THE TOWN OF CANTON AND AVON HAVE A JOINT ASSESSING OPERATION. SO THERE'S A LOT OF BACK OFFICE OPERATIONS, THAT YOU WILL SEE CONSOLIDATIONS, AND MERGERS WITH. AND IT WILL HAPPEN EVEN FASTER. I THINK PEOPLE WANT TO KNOW WHO TO CALL WHEN SOMETHING IS NOT RIGHT AND THEY WANT TO HAVE THAT LOCAL VOICE. >> SPEAKING ABOUT WHO TO CALL, THE STATE RESIDENT TROOPER PROGRAM IS UNDER SCRUTINY AS WELL. I KNOW A LOT OF TOWNS ARE UPSET ABOUT THAT. IN THIS AGE OF TIGHT BUDGETS, THE GOVERNOR HAS SUGGESTED CHANGES. WHAT DO YOU THINK WILL HAPPEN THIS YEAR? >> THERE'S A POSSIBILITIES THAT SOME OF THE FUNDING THAT THE STATE PROVIDES FOR, THE STATE POLICE WILL BE REDUCED FOR THE RESIDENT TROOPER PROGRAM. THAT WOULD BE VERY DETRIMENTAL TO OUR MORE RURAL AREAS OF THE STATE. THOSE RESIDENT TROOPERS NOT ONLY PROVIDE SERVICE TO THOSE TOWNS THAT HIRE THEM BUT ALSO FOR THAT REGION. THE STATE POLICE ARE A VERY IMPORTANT COMPONENT OF PUBLIC SAFETY AND THE RESIDENT TROOPER PROGRAM IS A BIG PART OF THAT AS WELL. SOME SMALLER TOWNS ARE SAYING THEY CAN'T AFFORD TO KEEP THE RESIDENT TROOPER PROGRAM IF THAT SUBSIDY DISAPPEARS FROM THE STATE. THAT WOULD BE VERY DETRIMENTAL TO PUBLIC SAFETY IN THAT REGION. >> DO YOU THINK THE TOWNS WILL MAKE THAT ARGUMENT TO STATE GOVERNMENT AND PREVENT THOSE CHANGES OR DO YOU THINK THEY ARE GOING TO HAPPEN? >> I THINK WE WILL HAVE SOME SUCCESSES AND SOME FAILURES. WE UNDERSTAND THE SITUATION BUT WE DO BELIEVE WE HAVE GOOD IDEAS AND CAN ADD VALUE TO THE DISCUSSION AND WE HOPE THEY GET A BUDGET ADOPTED NOW. >> AND YOU WANT -- AND IF IT WENT PASSED ON, THAT BUDGET QUICKLY, IF IT WENT PAST JULY 1ST WOULD THAT BE A PROBLEM FOR YOU? >> ABSOLUTELY. VERY CHALLENGING FOR US, WHEN WE HAVE TO SEND OUT THOSE TAX BILLS AND MAKE THE ENDS MEET, SO WE IMPLORE THE LEGISLATURE AND THE GOVERNOR TO GET A BUDGET PASSED AS SOON AS POSSIBLE. >> WE WON'T EVEN BE ABLE TO PAY LOANS, BECAUSE WE DON'T KNOW WHAT STATE AID IS GOING TO BE THERE. >> THANKS FOR BEING HERE. FOLKS HANK IN THERE, WE WILL BE BACK SHORTLY WITH OUR REPORTER'S SEGMENT. >> MY GUEST THIS WEEK IN OUR REPORTERS ROUND TABLE IS KEITH PHANEUF- JOURNAL INQUIRER I LIKE TO REFER TO HIM AS THE FUZZY GENIUS. WHY DON'T THEY LET YOU SOLVE THIS CRISIS? >> MY APPROVAL RATING AREN'T THAT HIGH. >> OKAY. WELL, THEN, LET ME ASK YOU ABOUT WHAT IS GOING ON IN REALITY. I KNOW THAT MEETING ARE GOING ON, BECAUSE I WAS STANDING IN THE CAPITAL WEDNESDAY NIGHT AND LOOKING DOWN OVER THE RAILING, AND I COULD SEE OVER THE FRANCE SOME THERE WERE BUDGET TALKS GOING ON IN A ROOM NEAR THE STATE SENATE. I GUESS WHAT I WANT TO ASK IS ANYTHING REALLY GOING ON? WE HAVE A LEGISLATIVE ADJOURNMENT DEADLINE COMING UP ON JUNE 3RD, JUDGING BY WHAT LAWMAKERS AND THE GOVERNOR SAID, THEY ARE NOWHERE NEAR THE BUDGET? >> NO, THEY ARE GOING OVER THE SMALLEST OF CUTS, JUST PROBING, FINDING OUT WHAT EVERYBODY IS DOING. EVERYONE HAS ACCEPTED THE FACT THEY ARE NOT GOING TO HAVE A DEAL DONE BY JUNE 3RD AND THE QUESTION MORE BECOMES, DOES THE LEGISLATURE NEED TO PASS A VETO BUDGET JUST SO IT SAYS IT DID SOMETHING, SHOULD THE GOVERNOR TAKE OUT THE BULLY PULPIT AND START TO COMPLAIN? IT'S GRIDLOCKED. >> WE KNOW IT'S GRIDLOCKED, BUT THESE ARE THE FOLKS, WHETHER WE ARE TALKING ABOUT THE GOVERNOR AND DEMOCRATIC OR LEGISLATIVE LEADERS, AND THE REPUBLICANS WHO LOOKED INTO THE CAMERA AND TOLD PEOPLE -- FOLKS THIS IS AN EXTRAORDINAIRE CRISIS, IT'S NOT BUSINESS AS USUAL. WE HAVE TO COME TOGETHER AND GET A BUDGET QUICKLY FOR OUR CITY'S AND TOWNS' SAKE, AS YOU HEARD IN OUR FIRST SEGMENT AND FOR THE SAKE OF THE PEOPLE OF CONNECTICUT. HERE WE ARE, DAYS LEFT IN THE SESSION, AND IT'S BUSINESS AS USUAL WITH PEOPLE STICKING THEIR FEET INTO THE MUD AND HOLDING ONTO THEIR POSITIONS AND NOT CHANGING. WHAT HAPPENS SINCE ALL OF THAT POMPOUS TALK AT THE BEGINNING OF THE YEAR. >> I THINK THE CHANCES WENT FROM SLIM TO BUPKUS. THE RHETORIC HAS CAUGHT UP. PEOPLE TALK ABOUT THIS IS WHAT I WANT TO DO AND THEN WHEN THEY CHECK, THEY ARE LIKE, WHOA. LIKE IN YOUR PAST SEGMENT, THE TOWNS ARE WORRIED. THEY MIGHT BOND GRANT PROGRAMS, BUT IF YOU WANT TO CUT THE BUDGET NOW THAT WE KNOW HOW MUCH WE ARE OR ARE NOT GOING TO SAVE WITH LABOR, YOU ARE EITHER HITTING TOWN AID OR SOCIAL PROGRAMS. A LOT OF THE SOCIAL PROGRAMS AND TOWN AID, IF YOU CUT IT, YOU FORFEIT FEDERAL AID. THERE ARE VERY FEW BIG POTS LEFT. PEOPLE JUST KNOW THAT AND ARE SHOCKED BY IT AND NOT READY TO DEAL WITH IT. >> DOES THAT SAY THAT PEOPLE DON'T KNOW HOW TO BE LEADERS HERE? THEY LOOK AT THE ENORMITY OF THE SITUATION AND THEY RETREAT TO THEIR NATURAL POSITIONS AND DON'T WANT TO TALK? >> YOU ARE HEARING MORE OF THOSE TYPES OF CHARGES, WHERE IS THE LEADERSHIP BECAUSE YOU ARE BEING ASKED TO CHOOSE BETWEEN UGLY CHOICE 1, AND UGLY CHOICE 2, RECORD SETTING TAX HIKES, ENDING SOCIAL PROGRAMS THAT ARE GOING TO DRIVE UP THE DEMAND FOR HOSPITALS OR SERVICES OR SOME COMBINATION. NONE OF THESE OPTIONS ARE GOOD AND EVERYBODY IS LIKE -- I COMPARED IT ONCE TO BEING ON A DOCK IN THE CENTER OF THE POND AND YOU KNOW THE ONLY WAY TO GET HOME IS JUMP IN THE COLD WATER AND SWIM TO SHORE. YOU KNOW WHAT YOU HAVE TO DO, BUT YOU HAVE TO DO IT. NO MATTER WHAT DIRECTION YOU HEAD IN, IT'S UNPLEASANT. >> DESPITE ALL THE HAPPY TALK ABOUT THERE MAY STILL BE A CHANCE GET A BUDGET BY JUNE 30TH IS, THAT RIDICULOUS, IS THE NEWS TARGET DATE JULY 1ST? >> IT'S NOT RIDICULOUS, JUST NOT BELIEVABLE. RIGHT NOW THE MAJORITY OF THE LEGISLATURE FEELS THEY HAVE TAKEN A P.R. HIT. THEY HAVE PROPOSED A RECORD SETTING 3.6 BILLION THIS TAXES. THE GOVERNOR IS SAYING, I WANT YOU TO CUT, BUT DOESN'T WANT TO TALK PUBLICLY ABOUT WHERE THEY SHOULD. HER PLAN IS 2 BILLION TO 3 BILLION OUT OF BALANCE. IT'S HARD TO TALK ABOUT TOUGH CHOICES WHEN SHE IS NOT WILLING PUBLICLY TO DISCUSS THE MOST BRUTAL CUTS SHE WOULD LIKE TO SEE. SHE MIGHT BE ASKING FOR TOO MUCH. >> IF THEY ARE SITTING THERE, AND AS YOU SAY, MOVING THE CUP AN INCH AND SAYING, WHAT DO YOU THINK OF THAT, AND THE OTHER SIDE SAYS, OKAY, WE DON'T LIKE IT. I WILL MOVE THAT BACK AND TRY SOMETHING ELSE. GETTING BACK TO THAT LEADERSHIP ISSUE, SOMEBODY NEEDS TO GET OFF THE DIME HERE AND COME UP WITH A BRILLIANT IDEA, AN OUT-OF-THE-BOX SUGGESTION AND TAKE THIS DOWN A NEW ROAD. THIS BACK-AND-FORTH ISN'T PRODUCTIVE. IF THAT'S THE CASE, WHAT COULD THAT BE, A DIFFERENT TYPE OF TAX HIKE. >> I WILL STICK WITH THE BOX ANALOGY. YOU THINK OF LEGISLATIVE LEADERSHIP AND RANK AND FILE. I AM WONDERING IF THE SAME DYNAMIC DOESN'T EXIST WITH THE PEOPLE AT THE TOP AND HER BUDGET STAFF. THEY HAVE LOOKED AT THE BOX AND SHOWN THEM THE BOX IS EMPTY, THERE'S NOTHING LEFT IN IT AND SAYING, THESE ARE THE ALTERNATIVES. RIGHT NOW I THINK THE GOVERNOR AND THE PEOPLE AT THE VERY TOP IN HER ADMINISTRATION ARE SAYING, GEE, I CAN'T ACCEPT ANY OF THESE REALITIES, GO FIND MORE. I DON'T THINK THERE IS SOMETHING OUTSIDE OF THE BOX. I THINK IT'S, AGAIN, SOME COMBINATION OF LOTS OF TAXES AND FURTHER CUTS. >> ME, THE IMPRESSION I GET IS THAT GOVERNOR RELL IS IN SOME WAYS LIKE THE DEMOCRATS, LOOKING AT THESE CUTS AND SAYING I DON'T WANT TO PROPOSE THEM BECAUSE I DON'T LIKE THE NEGATIVE EFFECTS OF CUTTING THEM, ESPECIALLY IN THIS ECONOMIC ENVIRONMENT WE ARE IN. THEN WE LOOK TO THE REVENUE SIDE. SHE HAS NEVER SAID IT WOULD VETO A BILL WITH TAX HIKES IN IT. SHE HAS SAID YOU HAVE TO CUT, FIRST, BEFORE I CONSIDER ANY KIND OF REVENUE INCREASES. LET'S IMAGINE THAT THE TAX HIKES IN THAT DEMOCRATIC BUDGET ON CORPORATIONS AND WEALTH THINK INDIVIDUALS,ED CETERA, SHE DOESN'T LIKE. WHAT ELSE COULD YOU DO IN THE AREA OF TAXES THAT MIGHT BE ACCEPTABLE. >> WHAT ELSE YOU COULD DO THAT MIGHT BE ACCEPTABLE, IT MIGHT -- >> KEITH, I AM LOOKING TO YOU FOR LEADERSHIP. THEY DON'T HAVE IT. YOU HAVE TO HAVE IT. >> YOU, AND MY MOM. IS WHERE MY APPROVAL RATING ENDS. MAYBE MY GIRLFRIEND. I AM NOT SURE. I THINK THERE'S SOME TALK OF COULD YOU LOOK AT THE SALES TAX AND THEN YOU RUN INTO A PROBLEM WITH THE BUSINESS COMMUNITIES. SAYING THE MALLS ARE NOT DOING ANY BUSINESS, IF YOU BUMP THE SALES TAX UP TO 7%, THE PROBLEM IS GO BACK TO THE GOVERNOR'S BUDGET. THE AREA SHE TOOK THE MOST HEAT, CO-PAYS ON STATE HEALTH INSURANCE. WHAT HAPPENS IF SHE TURNS AROUND AND SAYS NO MORE WELFARE FOR SINGLE ADULTS, NO MORE STATE HEALTH INSURANCE FOR ADULTS, ONLY FOR KIDS. I WANT TO CUT THIS AND THIS TOWN PROGRAM THAT WILL DRIVE UP A PROPERTY TAX INCREASE. THERE'S A WHOLE OTHER FIGHT ABOUT WHO PAYS IT. >> LET ME ASK YOU ABOUT THAT. WHAT IF THERE WAS AN INCREMENTAL ACROSS THE BOARD INCREASE IN THE INCOME TAX, A SMALL INCREASE. THEY KEEP SAYING WE ARE ALL IN THIS TOGETHER. SUPPOSE THERE WAS ACROSS THE BOARD SLIGHT CREASE, MAYBE EVEN SUNSETTING IT, WOULD THAT RAISE ENOUGH MONEY. >> THE LAST WAS 2007, THE GOVERNOR PUT IT ON THE TABLE. IT RAISED 700 MILLION. IF THE ANALYSTS ARE RIGHT, HER BUDGET IS 2.8 BILLION OUT OF WHACK, YOU HAVE TO GIVE ME FOUR OF THOSE INCREASES. >> FOUR OF THOSE, AND THAT WOULDN'T WORK, EITHER. SO I GOT 15 SECONDS LEFT. GIVE ME A DATE FOR WHEN THE BUDGET IS FINALLY APPROVED. >> LABOR DAY. >> WE WILL HAVE TO SET OLE THAT. I HOPE YOU ARE WRONG. FOLKS WE WILL SEE YOU NEXT WEEK "ON THE RECORD." ¶¶