HARTFORD, Conn. (AP) - Gov. Dannel P. Malloy has released a revised two-year state budget that reduces aid by another $362 million in the first year to many Connecticut cities and towns while boosting funds for poorer communities, including Hartford.

The new proposal unveiled Monday also eliminates the state sales tax exemption on nonprescription drugs and increases the real estate conveyance tax rate on properties valued at more than $800,000.

Malloy revisited the two-year $40.6 billion budget he released in February after anticipated income tax revenues dropped sharply. It will be the basis for budget negotiations with legislators.

It comes after the projected deficit for the fiscal year starting July 1 jumped from $1.7 billion to $2.3 billion.

Malloy's plan still relies on $700 million in state employee concessions, which remain unsettled.

All funding is pulled for state-owned real property in Bethel, Bethlehem, Bridgewater, Brookfield, Easton, Kent, Monroe, New Fairfield, New Milford, Newtown, Redding, Ridgefield, Roxbury, Sherman, Southbury, Washington, Weston and Wilton. 

Danbury is unchanged, but for colleges and hospitals Danbury received 1.25 million this year.  Over the next two years, there is no funding allocated.  In this category, New Milford received $89,000 but would be zeroed out over the next two years.

Town aid road grants remain the same under the Governor's original proposed budget for the next two years and his revised plan.  Cities and towns will not be paid the state's share of slot machine revenues at the two tribal casinos under the revised plan.

Local Capital Improvement funding and adult education money proposals have not been changed in the latest budget revision.

Municipal Revenue Sharing Grants have been pulled.

The Education Cost Share program was overhauled.  Special education is a separate allocation.

Bethel received $8,087,732 this year.  The town was proposed to receive $4,209,487 in each of the next two fiscal years, but will now get $2,598,334.  Special education funding each year under the revised plan is $1,447,507.

Brookfield received $1,417,583 this year.  The town is proposed to receive no funding in each of the next two fiscal years.

Danbury received $31,290,480 this year.  The town was proposed to receive $33,594,209 in each of the next two fiscal years, but will now get $31,442,996.  Special education funding each year under the revised plan is $11,122,110.

New Fairfield received $4,338,569 this year.  The town was proposed to receive $543,196 in each of the next two fiscal years, but will now not receive funding.  Special education funding was also cancelled out.

New Milford received $11,832,806 this year.  The town was proposed to receive $4,557,577 in each of the next two fiscal years, but will now get $2,126,347.  Special education funding each year under the revised plan is $891,544.

Newtown received $4,893,944 this year.  The town was proposed to receive $969,688 in each of the next two fiscal years, but will now not receive funding.  Special education funding was also cancelled out.

Redding received $180,135 this year.  The town was proposed to receive $16,000 in each of the next two fiscal years, and that is still the proposal under the revised plan.  There is no special education funding being allocated.

Ridgefield received $571,648 this year.  The town is proposed to receive no funding in each of the next two fiscal years.