Still reeling from a bruising “town hall” tour of cities and towns in the state, Gov. Dannel Malloy is poised to make some adjustments to his budget. He has scheduled a news conference for this afternoon.

Several published reports say Malloy may at least partially restore the popular income tax credit. The $500 credit is designed to help the middle class—it fades out on higher earners—but has targeted for elimination by previous governors. Malloy initially proposed scrapping the credit but left-leaning advocacy groups are resisting. Getting rid of the credit would save the state $365 million.

Meanwhile leaders of the state’s cities and towns are in a near panic over what could be substantial cuts to aids to cities and towns. Although Malloy administration officials say those proposed cuts—in the tens of millions of dollars—shouldn’t necessarily be considered part of the alternative budget but a rather a response to repeated questions about how New York Gov. Andrew Cuomo was able to balance his state’s budget without any tax increases.

Malloy has said on many occasions that if he can’t get the concessions he needs from the state employee unions, thousands from their ranks could be laid off. The problem is, the people of the state seem willing to accept such a move.