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Hartford (WTNH) – Connecticut lawmakers are back at the state Capitol to tackle a state budget deficit estimated at more than $300 million for the current fiscal year.

Leaders of the Democratic majority have said they support most of Republican Governor Rell’s plan to reduce the deficit, which includes budget cuts and delaying spending on several programs.

The special session may go down in history as the ‘nickel and dime budget cutting session.’ But, it appears the governor is not going to get some of the nickels and dimes that she wants.

In the budget cutting proposals the assembly is voting on today, lawmakers are agreeing with the governor’s cuts in the budgets of many state departments for things like equipment, and unexpected expenses; stuff that isn’t really necessary right now.

“These cuts, by and large, are the easy cuts,” Senator Don Williams said.

The Governor has been trying to squeeze every nickel and dime. She wants to seize the unclaimed deposits left behind when people don’t bring back bottles and cans.

“It’s about…$24 million in a full year,” Gov. Rell said. “You know, we need the revenue to help balance this budget.”

But the industry disputes those figures and says they need the money to run these recycling centers, they’re fighting hard against the proposal and it appears dead for now.

Another of the Governor’s proposals is to allow for a Tax Amnesty and she bristles at those who think this lets tax dodgers off ‘Scot Free.’

“They would not get off ‘Scot Free,’ we would simply say that you have to come in and pay your back taxes,” Governor Rell said. “We may wave the penalty but you would still pay the interest.”

But in state government, this is really nickel and dime stuff. Those gaping holes in the next two years will not be so easy to fill.

“Going forward, the tough work will begin when we look at the next two year budget beginning in January,” Senator Williams said.

Lawmakers know that finding billions of dollars in cuts next year will mean curtailing aid to cities, merging and eliminating state programs and probably job layoffs.

“The only way to do that is to start with the assumption that there are no sacred cows in the budget,” State Budget Director Robert Genuario said.

And even with the revisions they are voting on today, there will still be another $280 to $300 million in red ink for the current year.

If they can’t make further revisions, that will come from the state’s ‘Rainy Day Fund.’ But the Governor and many in state government don’t really want to do that because that Rainy Day Fund will be needed next year and maybe the next.