(02/08/06) HARTFORD ? Governor Jodi Rell (R-CT) delivered a State of the State address Wednesday that proposed major tax cuts designed to save residents millions of dollars.

In the new state budget released to lawmakers, Rell proposed a 25 percent cut in Connecticut?s utility taxes and the elimination of the personal property tax on automobiles. The governor says the state will pay towns for money lost due to the car tax elimination. In order to reimburse the towns, Rell says the state will use casino revenues and cut the $350 deduction homeowners can slash off their tax returns.

Rell says she will make the creation of jobs and economic development her top priorities this election year. She plans on offering businesses incentives for creating jobs in Connecticut. In addition, Rell wants to offer students help on their students loans to stay in Connecticut and offer their expertise to a state company.

The governor also plans on saving most of the estimated $537 million state budget surplus. The State of the State speech was Rell?s first as a candidate for re-election.