HARTFORD, Conn. (AP) Legislative leaders say they're considering a possible special legislative session during the second week of December to address Connecticut's budget shortfall.

Both Democrats and Republicans emerged from Tuesday's closed-door, budget-cutting meeting with Democratic Gov. Dannel P. Malloy optimistic they are moving closer to an agreement on how to fix an estimated $350 million to $370 million deficit in the current $20 billion state budget.

Senate Majority Leader Martin Looney said the group had ``hopeful and productive discussions'' and ``narrowed a lot of the differences between us.'' Talks are expected to resume early next week.

It's questionable whether a final deal will include a retirement incentive for state employees. While House Democrats and Malloy already opposed the idea, new estimates show the plan won't save as much money as first projected.