Democratic state House leaders continue to back a two-year budget proposal they unveiled Thursday, the day before the fiscal year ended.  House Speaker Joe Aerosimowitz says the sales tax increase was brought forth by the Connecticut Conference of Municipalities and others to preserve municipal funding.  He says that proposal keeps municipal funding status quo, for the most part.  He notes that there are some structural changes.  CCM asked for the power to have regional collective bargaining and the ability to do more regionally.  Aerosimowitz says those items are included.

House Majority Leader Matt Ritter says Danbury Mayor Mark Boughton and Hartford Mayor Luke Bronin stood with CCM and asked for diversification in municipal revenue streams.  Ritter says he agrees with the mayors on that point.

Lawmakers and the governor were unable to reach an agreement on a two-year budget that will cover a projected $5 billion deficit.  The fiscal year ended at midnight Friday.

Nonprofit social service agencies that rely on state funds are preparing for deep cuts now that Governor Malloy has signed an executive order that maintains only essential state services.

Gian-Carl Casa, president and CEO of Connecticut Community Nonprofit Alliance, says agencies that help people struggling with mental illness to domestic violence are planning to lay-off staff and close programs.  He said it was "beyond disappointing" the General Assembly will not meet on Thursday to even adopt a short-term budget, saying "the lives and health of tens of thousands of Connecticut residents" are at risk.