The state's estimated budget deficit continues to soar.  The shortfalls are now predicted to be $2.6 billion in 2010 and $3.3 billion in 2011.  Officials say a lack of growth in Connecticut would be one thing, but revenues are actually diminishing across the board.  That goes for income tax, sales tax, and casino revenues which are the state's three primary earnings. 

"This is an opportunity to streamline government and to return to our core functions," Rell says.  "It puts us in a position to finally address some of the long term problems and yes, some of the goals we had hoped to be able to achieve in state government."

The projections are based on current service requests of state agencies in addition to the cost to maintain state programs over the next two years.