In the past week, budget talks seem to be going in circles instead of moving forward. It seems like we cannot answer the question, "Should we cut programs and then raise taxes, or should we raise taxes and then cut programs?" While the Democrats see it one way, the Republicans definitely want to see programs cut and taxes raised as part of the discussion. The Republicans still insist that they can balance the budget without significant tax increases - yeah, there may be some fees raised here and some special one-time or two-time assessments there, but the level of tax increases will not be what they have been in previous Democratic plans.

On Tuesday, Speaker of the House Chris Donovan was briefly stopped outside a committee room in the Legislative Office Building, where he told reporters that he and others plan on seeing the proposal hitting the Floor sometime next week. Donovan and other Democratic leaders continue to seek the personal participation of Governor Rell, but according to her senior staff and media people, she will let her negotiators represent her opinions only when she sees significant movement towards "right-sizing state government." This has spurred the Democrats to move quickly to build statewide support against the Governor's budget cuts and finalize a budget based on their revenue recommendations and limited spending cuts. Their hope is this would allow them to override a veto by the Governor, which would be likely at this moment in time.

The line is drawn in the sand. The Democrats have been holding press conference after press conference detailing programs - such as the Life Star Helicopter and the prisoner re-entry program STRIDE, for example - which will all be axed by the Governor's proposal to balance the state budget. The Democrat's key message is that these programs are essential to Connecticut's quality of life, and their "tax and spend" proposal keeps these programs operating, while those who are most able to pay foot the bill by contributing their "fair share." To view Governor Rell's budget proposal on spending cuts, go to this link, which provides an interactive map created by the Senate Democrats - Governor Rell's Proposed Budget Cuts.

As Democrats try to configure their own plan, it has been most difficult in the Senate, considering there are 24 Democrats and 12 Republicans. That makes the 2/3 majority needed to override a veto very difficult. Rumors in the past allow for the possibility that some Senate Democrats could be opposed to the new budget plan, since the new plan includes income tax increases. Back in April, the Democrats proposed a tax hike on wealthier households earning more than $250,000 to help address the $8.7 billion deficit. That revenue package was immediately opposed by Democrats, mostly those in lower Fairfield County. Over the past weeks, it's rumored that Senate leaders have been attempting to revamp the proposal in order to get to the magic number needed for a veto override.

All the key players at the Capitol have stated that they are seeking to reach a deal by June 30. Donovan indicated that it is very unlikely that a budget deal can be passed by next week, but he is confident to see something by June 30; they just need to get the ball rolling. Today they are in Hartford for some federal adjustment language related to stimulus spending, but they took the morning to review with their caucuses what the possible Democratic budget might look like.

It seems, though, that all this political pressure is not sticking, as reporters and media folks keep asking, "If not this cut, which one? And if not that tax increase, which one?" The next 11 days will be the final chance to get it done and not let down the people of the State. Most seasoned Capitol folks say that a budget will be passed and sent to the Governor even if she vetoes it. We have 11 days to go to determine whether or not that assumption becomes true.

Former Speaker of the House James Amann has found himself in a bind with the Connecticut Voices for Children (CVC) advocacy group, all over the state's high-profile tax credits, which are used to attract the movie industry here within Connecticut's border. The detailed report created by CVC shows that the film credits are actually a huge subsidy for out- of-state businesses and workers. But Amann, who is the original architect and strong advocate for the film and digital businesses in Connecticut, was disgusted with the report and CVC's position. Amann believes that the report is incomplete and does not show the true findings with the film industry in Connecticut.

Since 2006, Connecticut has been the home to over 91 film productions, including television shows, videos, and full-length movies. In Amann's eyes, he sees the film and digital industry to be a huge success for the state and could generate much needed revenue. Amann believes the data from CVC did not show the full economic impact of more than 400 new jobs in Greenwich at the new headquarters for the film company, Blue Sky. Amann says there are 2,000 permanent jobs in the film and digital industries in Connecticut that have been created since 2006 alone.

The CVC report stated that the state awarded $9.3 million in tax credit subsidies for eight productions, even though those productions reported "no actual Connecticut production spending at all." CVC wants to cap the film tax credits, which Governor Rell has proposed doing at $30 million. The group also suggests preventing entertainment companies from selling the tax credits to other companies, which have been purchased by Comcast, Kohl's Department Store, JP Morgan Chase, Wachovia Bank, Bank of America, and others.

Both Amann and CVC will have their work cut out for them as this issue continues to unfold. In the days following the report, both sides continue to spread their message and exchange unfriendly words. The issue is split as many legislative Democrats back the film tax credits and the idea to expand the film and digital industry here in Connecticut. On the other side, there is Governor Rell and CVC who would like to see the film tax credits capped or to disappear completely.

Earlier this week, Governor Rell announced the replacement commissioner for the Department of Revenue Services. Richard D. Nicholson of Glastonbury will be the new Commissioner to replace Commissioner Pamela Law, who is retiring effective July 1, after a 33-year career with the State of Connecticut. Nicholson, who has served as the Department's Deputy Commissioner since February 2003, will serve as Acting Commissioner until confirmed by the legislature during the 2010 regular session of the General Assembly.

Nicholson is well qualified for the position and has a bachelor's degree from the College of Holy Cross and a law degree from the University Of Connecticut School Of Law. He was recently a partner with the law firm of Shipman & Goodwin in Hartford. Between 1994 and 2000, Nicholson served as General Counsel for the Department of Revenue Services, which is where he gained most of his experience. Governor Rell believes Nicholson has a comprehensive understanding of the Department and its issues. She is very confident he will pose a solid leadership role.

Nicholson will be leading the duties of the DRS by enforcing state tax laws and collecting state tax revenues. The agency is responsible for ensuring voluntary compliance with the tax laws by educating the public about their tax responsibility and by assisting taxpayers in filing appropriate tax returns and paying taxes. Nicholson will also be in charge of initiating action to collect unpaid taxes and apply enforcement measures.

The Governor's Office will lose long-time public relations and communications pro Chris Cooper to the early retirement package. After more than 30 years in state government, Chris plans on relaxing, enjoying life, and spending time at the beach! Good for him.

Additionally, with over 3,400 state employees taking advantage of the plan, we hear that Department of Corrections will be looking for a national search to fill the spot of Commissioner Lance; and at Homeland Security and Emergency Management both the Top dog and Deputy dog are retiring. No replacements at HS/EM have been officially named. With eleven days still until the program is cut off, many expect to see a few more veteran employees take the package.

This Sunday on "Face the State," Oz Griebel of the MetroHartford Alliance will be talking about changing state government. Also, Hartford City Council member Matt Ritter (D) and James Varano, a downtown business and property owner, will discuss the financial crisis that the city of Hartford is struggling through. Last but not least, an interview with Abe Ribicoff from June 1969 will be aired as part of a look into Channel 3's archives. "Face the State" broadcasts this Sunday at 11:00AM on WFSB News Channel 3. Tune in!