HARTFORD - Gov. Dannel Malloy (D-Conn.) announced today that he has reached a deal with state labor unions on concessions.

The recently passed state budget was based on $2 billion in union concessions over the next two years that had not been agreed upon.

Malloy said they were able to save in the areas of health care, pension benefits and wages. He also said taxes will not be raised above the level set in the budget approved by the Legislature.

The governor had threatened massive layoffs and program cuts if a deal had not been reached.

The first round of layoff notices had already gone out earlier this week.

Click here to read his full statement

VIDEO: Malloy on state union dealState workers await news on potential layoffsState workers await news on potential layoffs