Rell puts second budget on the table

Hartford (WTNH) - Gov. Jodi Rell's second budget proposal calls for more than $1 billion in cuts but includes two new elements: borrowing money and expanding gambling.

"I'm not looking for a battle but I'm willing to fight one," Rell said in an afternoon press conference.

Rell's revised budget calls for generating additional revenue by allowing Keno, the electronic lottery game. It would be an expansion of gambling but Rell says she is comfortable with the idea because it will generate millions in new funds.

"It's something the legislature had grappled with. It's not a new concept and it would mean new revenue," Rell said.

This comes as budget negotiations with the Democrats drag on and just six days left in the legislative session to get a budget passed.

"The real issue for us is we've been waiting for her plan," said Rep. Cameron Staples (D-New Haven).

Just like her first budget, the new budget does not raise taxes but calls for $650 million more in cuts and talk of borrowing money to balance the budget. The Democrat's budget does call for a tax increase.

"We're not gong to make irresponsible cuts on the backs of Connecticut's poorest before we ask the wealthiest residents to pay more. It's not responsible, it's not moral," said Rep. John Geragosian (D-New Britain).

The governor has made contingency plans in case a new budget is not approved by Wednesday.