Douglas, Legislature Unable To Resolve Difference On Budget

(Host) After several days of negotiations, Democratic leaders and Governor Jim Douglas have been unable to resolve most of the outstanding issues at the Statehouse.

The negotiations went far beyond differences on the state budget. They linked together at least five different bills where the administration and the Democrats had significant differences.

The package of bills includes the budget, Challenges for Change, property tax reform, a miscellaneous tax bill and changes to the Current Use program.

Last year, the governor vetoed the budget and lawmakers successfully overrode the veto.

House Speaker Shap Smith says he wanted to avoid a similar showdown this year:

(Smith) "I don't think that any of us really want to go forward with some thing that would result in a veto there are some difficult issues that need to be resolved and we've had productive conversations over the last 3 days and my hope is that we can use the bulk of those conversations to reach some sort of agreement."

(Host) Administration Secretary Neale Lunderville said he was open to a compromise that linked all of the issues together:

(Lunderville) "We are hoping we can pull it all together but we want to make sure that it's a deal that works for Vermonters the governor has been very clear that he wants a budget that puts job creation as the top priority and that does involve making changes to our tax policy in Vermont to give small businesses an advantage to be able to create jobs here."

(Host) Without a final agreement, Secretary Lunderville says the governor will veto the budget:

(Lunderville) "If the governor doesn't see the kind of progress that he's looking for in those areas he's been clear that the budget wouldn't be acceptable to him."

(Host) Lawmakers are hoping to adjourn the 2010 session late tonight.  If the Governor does veto the budget, a special veto session will most likely be held next month.