By Keith M. Phaneuf and Jacqueline Rabe Thomas

UPDATE The General Assembly’s Appropriations Committee today failed to adopt a $41 billion budget proposal as Democrats were unable to hold together a paper-thin majority on the panel.

And as leaders from both parties blamed each other for the committee’s failure to act — two days before its Thursday deadline — everyone also acknowledged there was a chance the tax-writing Finance, Revenue and Bonding Committee might not finish its work before its allotted time runs out on Friday.

Sen. Cathy Osten of Sprague and Rep. Toni E. Walker of New Haven, the Democratic chairs on the appropriations panel, announced at about 3 p.m. that a vote would not be held.

“It was made clear that many of the people who were participating” in preparing the plan “were still voting no,” Walker said, referring to Republican members of the Appropriations Committee.

By Keith M. Phaneuf

Gov. Dannel P. Malloy’s administration notified state employee unions this week that nearly 1,100 workers could face layoffs in May — the first stage in an alternative cost-cutting plan if ongoing concessions talks aren’t successful.

This marks the second time in the past week that Malloy has hinted time is running out for unions to accept major concessions to help balance the next budget.

The governor, who expressed disappointment publicly last week that months of informal talks hadn’t produced a deal yet, this week took the first in a series of procedural steps to begin another round of state worker layoffs.

The administration specifically notified bargaining units that 11 departments and agencies had crafted plans that could affect close to 1,100 workers and also lead to elimination of about 120 unionized positions that currently are vacant.

By Keith M. Phaneuf

The legislature’s tax-writing panel is considering a measure that would repeal the sales tax exemption on goods and services sold to nonprofits — a provision that saves these entities more than $200 million per year.

Democratic leaders of the Finance, Revenue and Bonding Committee said this proposal, which will go to a public hearing next week, is part of an ongoing exploration of possible widening of Connecticut’s sales tax base.

But the top House Republican on the committee and the state’s largest nonprofit association cautioned it could harm the nonprofit community at a time when Connecticut relies on it the most.

“At this point we are just hearing it,” Rep. Jason Rojas, D-East Hartford, House chair of the Finance committee said. “I think we have to take all (revenue) options seriously.”