HARTFORD - Gov. Dannel Malloy (D-Conn.) delivered his budget proposal to the state today.

He addressed the General Assembly at noon to outline his plan to cut a $3.7 billion deficit.

The plan will include $1.5 billion in new and increased taxes.

The governor's plan calls for an end to many tax exemptions. Haircuts, pet grooming and car washes are among the services that would now be taxed.

The proposal also includes $758 million in spending reductions and $2 billion in concessions by state employees.

The budget covers the next two fiscal years and does not borrow any money to cover operating expenses.

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