(AP) - Connecticut Democrats who control the General Assembly are unveiling a budget that raises the income tax on higher income earners, borrows hundreds of millions of dollars and imposes a surcharge on corporations.

Democrats say their budget proposal spends about $164 million less over the next two years than Republican Gov. M. Jodi Rell's $38.4 billion plan.

Rell aides and some minority Republicans have already criticized the Democrats' plan for increasing taxes. Rell has said she wants to close the state's looming budget gap without raising taxes on residents who are struggling during the recession.