Taking a page out of the old Reagan playbook, Governor M. Jodi Rell took the opportunity to use her State of the State address to talk directly to the people of Connecticut, as well as to those gathered in the House chamber on Opening Day. As in years before, she arrived to a warm and exuberant greeting. However, when Rell concluded her speech, many noted that her address lacked the "super surprise" factor present when kicking off former sessions. Instead, it was modest, detailed, and focused on a tight budget and solving everyday problems facing the people of the state.

The Democrats were quick to go on the record to state that the address was merely "red meat" or lacking of anything substantive. There were no radical changes being proposed to the state's ECS formula or tax structure, only to the state's three strikes law. The biggest change, and the one that has and will continue to receive the most criticism, is the proposed division of Connecticut's largest and most troublesome state agency, the Department of Transportation. Republicans, on the other hand, applauded the Governor for delivering a budget filled with everyday solutions to nagging problems, no new taxes, and staying under the mandated spending cap.

The three strikes law will be introduced again to address people convicted of three violent felony offenses, and to satisfy those who thought mistakenly there was an "out" in the original criminal justice proposal. In addition, the Governor proposed removing the possibility of a case review after 30 years. Now it's three strikes for violent felony convictions and you're truly out. This issue pits the Democrats against the Republicans. The argument of what side is soft on crime has resonated in past elections. This issue was defeated in 2007 because Democrats argued that the law would take crucial sentencing discretionary powers away from judges. Many wonder if the Democrats will waver from their position during the recent special session.

Unlike 2007, where Governor Rell proposed to increase spending and taxes, this year the Governor has decided to take the exact opposite approach to control spending and to introduce her much touted property tax cap. A tax cap is found within 43 states and Republicans feel that its time to bring it to CT. Democrats think otherwise. All agree on a reform to the property tax system, but it remains to be seen who can sell their proposal to the residents of Connecticut.

The State of the State address shows a governor that is looking toward an uncertain economic future and is hesitant to spend and equally determined to help Connecticut's taxpayers save. The rest of the big ticket items on Rell's agenda, including the property tax cap, criminal justice reform, and a budget with no tax increases, probably will have some rough rowing in this short session. But then again, for the past three years the majority party said no, but at the end of the session, the Democrats often shifted to say okay...with some changes.

Taxes. Property tax relief. Families. Businesses. This year all four legislative caucuses announced their 2008 priorities with the same buzz words. But it remains to be seen how similar, or even specific, any of these plans truly are. Can the majority and minority parties agree on some of these proposals? Can they build on last session's momentum for key issues? They have 60 days to find out.

Senate Ds
As in the past, the Senate Democrats lead the way with their "Senate Bill One" proposal, which they referred to as the "Emergency Relief Plan for Connecticut Families." The goal is for a one-time, income-targeted relief.

Vehicles include increasing the property tax credit to $250, and providing a refundable state earned income tax credit, an initiative that Senator Looney touted last session. Providing mortgage relief also makes the list, especially with so much national attention on the subject, as well as helping small business owners and increasing energy assistance.

The Senate Ds stipulate that relief should only be targeted to low and middle income taxpayers to "maximize its impact."

House Ds
The House Ds' "Building a Framework for Our Families" plan is one of the more comprehensive proposed. The main tenets are property tax relief, a healthier Connecticut, economic growth and creation, a greener Connecticut, and transportation. The property tax relief portion of this plan differs from the credit sought by the Senate Ds. Instead, the House Ds, in part, hope to create Municipal Aid Rainy Day Fund and to explore the state assuming more local costs such as special education.

Many of the initiatives are building on work done in 2007 - continued investment in preventative health programs, build and train a workforce for Hollywood East, reduce dependency on oil, and make our roads and bridges safer.

"These issues are ever evolving challenges that don't go away overnight..." said Speaker James Amann.

Senate Rs
"As the traditional economy has given way to the entrepreneurial economy, small businesses have become increasingly important to our state's fiscal well-being," said Senator McKinney, summing up the focus of his caucus this year.

The Senate Rs would like to expand the job creation tax credit to small businesses. Currently the credit is only available to Connecticut C-corporations that create 10 or more net new jobs per year. They would also like to repeal the Business Entity Tax. The Senate Rs refer to this as a $250 "tax on existing" that needs to be eliminated. A Republican amendment that included the elimination of this tax failed on a party-line (12-24) vote in the Senate last year.

Cleaning up costly, unnecessary business regulations and extending the movie industry tax credits that created Hollywood East to other emerging industries such as alternative energy rounded out the list.

House Rs
Not too far off the general idea of the Senate Ds' assistance with the essentials, the House Rs presented middle class tax relief. They propose using approximately $200 million of the state's $263 million surplus to provide maximum income tax credits of up to $500 per household for joint filers earning up to $150,000 for home heating assistance. In addition, they would like to provide similar maximum $500 income tax credits to offset out-of-pocket medical costs.

"The willingness of Democrats to finally embrace Republican fiscal policies such as tax credits and actual tax cuts to help working families is encouraging," said Rep. Larry Cafero, "It leads me to believe we can get something done in the short term to help those grappling with how to heat their homes and pay their kids' doctor bills."

Perhaps those words of encouragement will hold true and both sides of the aisle can come together in the short session to make a difference for families in Connecticut. It may now appear as though the caucuses are all basically on the same page, but, as usual, the devil's in the details! So stay tuned - not to the what, but to the how...

As you all know, it's hard to say goodbye to a friend and colleague after working side by side in the trenches for years. This week Dennis O'Brien decided to take it a bit easier and forgo the 24/7 lifestyle that we live during the legislative session. Having Dennis on our team has been rewarding. His humor, ability to get along with folks, and genuine love of the ins-and-outs of politics has served him well.

We know that his decision to move into a more flexible sessional work environment will mean that he can enjoy balancing work with his grandkids, family, and life on the lake floating around on his pontoon boat! We will miss his upbeat presence around the office, but we know we'll have plenty of time to catch up during the session. We wish him all the best!