Discrepancies in state budget deficit

Hartford (WTNH) - Democrats in the General Assembly are accusing Republican Governor Jodi Rell of ignoring the real state budget deficit so she could promise not to raise taxes.

Almost immediately after Rell announced her budget nine days ago, Democrats in the General Assembly complained that it was over two billion dollars out of whack. They now are pointing to a news confrence, held two weeks before her budget announcement, as evidence that she knew it, because of this response by her budget director to a question from Chief Capitol Correspondent Mark Davis.

"I think it's fair to say that we will be closer to eight than six," said Robert Genuario, state budget director.

The governor was sitting right next to Genuario and made no effort to dispute what he had said. A video clip now the subject of local bloggers and even a YouTube video.

Senate Majority Leader Martin Looney of New Haven says it proves the Governor knew her budget was not balanced as required by law.

"I think it shows that the administration was aware of a more severe budget problem than they acknowledged in the budget that they submitted," Looney said.

Rell denies the allegations saying, "Mark, I never withheld anything intentionally."

"The numbers are clear that the only way that the Governor was able to present a budget that appeared to balance without tax increases was to come up with one that was up to two billion dollars short of reality," Looney said.

What Democrats in the Assembly are saying is that the Governor manufactured a phoney budget in a political game of chicken.

"Clearly there's a game being played here and the game is that the Governor does not want to be the first one to address the issue of new revenues that are needed," Looney said.

Mark Davis: I think their point is that you're putting them in a position of having to suggest raising taxes when you know it has happen.

"I'm putting them in a position to suggest cutting spending and they've not even done that yet," Rell responded.

The Governor's strategy appears to be working. Today a group of nearly two dozen Democratic state lawmakers became the first to formally call for an income tax hike on the state's wealthiest residents to help sustain state services and balance the books.

The legislative committees that handle the budget are expected to finalize their recommendations in early April.