Compromise sought on budget gap

House-Senate conference committee is expected to take up competing versions of legislation aimed at closing a state budget shortfall ranging between $485 million and $650 million for the current year.

      Last week, the Senate approved a $228 million package to complement the $343 million in spending cuts announced last month by Gov. Mitt Romney. The Senate plan calls for tapping various reserve funds, closing several corporate tax loopholes and raising real estate transaction fees. The measure passed 38-0.

      The House earlier approved a similar bill that calls for using a different mix of reserve and trust funds, but does not include the higher real estate fees. The Senate bill would raise about $150 million more than the House measure.

      Neither bill includes proposals by Romney to tighten eligibility requirements for Medicaid and raise the share of health insurance costs paid by state employees and retirees from 15 percent to 25 percent. While senators expressed concerns about the impact of higher rates on retirees, House leaders said a tiered plan may still be considered.

      "We couldn't afford to fund these contracts last year and now we face a $3 billion deficit in fiscal year 2004," said Rogers. "There is no way we will be able to fund these contracts."

      A Romney spokeswoman said, "We have no money for these raises."

     The governor is expected to file his Fiscal 2004 budget on Feb. 26.