Budget Committee Waits for Third Way

By Dan Gorenstein on Friday, June 12, 2009.

When budget negotiations resume Monday, lawmakers expect to hear a detailed report from the Department of Revenue on two new funding sources.

After one week, it’s clear that the Senate and House are far apart when it comes to how the state should fund government services.

But leadership teams in both chambers do agree new revenue is needed as the state tries to shore up what could be a nearly half a billion dollar shortfall.

So instead of expanded gambling, or a capital gains tax, lawmakers expect to hear an altogether different proposal later this afternoon.

The Department of Revenue Administration is likely to layout plans to create a tax on refinancing mortgages as well as on dividends from limited liability companies.

Head House budget writer Marjorie Smith says she’s open to the proposals.

TAPE: assuming the questions are answered that we’ve asked, we could go along with it.

More complete details are expected this afternoon.

The top Senate negotiator, Lou D’Allesandro, says he’s not enamored with the proposals.