Conn. gov: Labor deal to balance budget 'unlikely'

By SUSAN HAIGH | June 23, 2011 | 8:59 PM EDT

HARTFORD, Conn. (AP) — Connecticut Gov. Dannel P. Malloy says he's doubtful that state employee unions will agree to roughly $2 billion in concessions and other savings over two years and wants lawmakers next week to consider possible layoffs and further budget cuts.

The proposed labor savings agreement is supposed to balance the two-year, $40.1 billion budget.

Malloy announced Thursday he wants lawmakers to return June 30 for a special session.

He says he wants the legislature to expand his budget-cutting authority and to pass a plan to close the budget gap.

Many of the state's unionized workers are still voting on the plan, which is supposed to save $1.6 billion over two years.

Malloy says he's "loath" to impose layoffs and additional spending cuts, but has no choice.