Connecticut Gov. Dannel Malloy last week signed into law a $40 billion biennial budget that includes across-the-board tax increases and relies upon $2 billion of projected employee savings.

While the two-year budget will cut spending and consolidate state agencies to 57 from 81, it also includes a combined $3.7 billion of tax increases in fiscal 2012 and fiscal 2013, according to Adam Liegeot, spokesman for the Senate Republicans.

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