Gov. M. Jodi Rell announced Tuesday evening that she would use her line-item veto power to remove some discretionary spending from the $37.6 billion budget passed by the Democratic-controlled Legislature Friday morning, but would allow the budget to become law without her signature.

The Governor said she had offered four budget proposals, including the last one which had agreed-to tax increases on individuals and businesses, hoping it would prompt Democrats to comply with $530 million in budget cuts. She also proposed the Estate Tax be eliminated and the sales tax cut half a point to 5.5 percent.

Democrats countered with reductions in estate tax exposures by hiking the limit for taxation from $2 million to $3.5 million. But spending increased by $1.8 billion in the budget plan passed by the Democrats.

Gov. Rell said she tried to do her best but the lack of a budget, now in its 67th day, has had a impact on the state which cannot be worsened by more negotiations and debate. She hoped the cut in sales tax will create 8,000 jobs and produce another $775 million in revenue.

Many Republicans and others concerned about the level of punishing taxation had urged the Governor to veto the bill and bring the Democrats back to the bargaining table. The 22-13 vote in the State Senate proved the Governor’s veto had a good chance of being sustained.