The state comptroller and the governor's budget office agree on one thing: the current fiscal year is about $300 million in deficit.

But they part ways on whether to also count approximately $504 million as part of the projected shortfall.

Comptroller Nancy Wyman, a Democrat, said the $504 million is a "structural deficit" created by years of paying for current expenses with prior surpluses. On Wednesday, she warned of a total $800 million budget "imbalance," and suggested spending some of the state's $1.4 billion Rainy Day Fund to help cover the gap.

But Robert Genuario, Rell's budget director said that's wrong.

The $504 million structural problem, he said, won't be an issue until 2010 and will be dealt with when Rell and lawmakers approve a new two-year budget in the next legislative session, which convenes January. In the meantime, he said policymakers need to focus on whittling away the projected $300 million for the current fiscal year.

"Connecticut is facing difficult fiscal times and we all need to work together," he said.

Rell is now required to present the legislature with a deficit mitigation plan. On Tuesday, she announced $35 million in cuts she is making using her limited executive authority.

Genuario said the mitigation plan, which is already in the works, will cover the remaining $265 million. He expects it will be ready for lawmakers in several weeks.