The state budget deficit is not as bad as has been reported, two-year state budgets likely have outlived their usefulness in these uncertain economic times, and Three Rivers Community College isn't going anywhere soon.

Gov. John G. Rowland made those points -- among others -- Thursday at a luncheon for editorial page editors across the state held at the Governor's Residence in Hartford.

Of special interest to Norwich and the region were Rowland's comments on consolidation of Three Rivers Community College. On that count he gave this city reason for cautious optimism.

The governor said, "I don't care where it goes," and there's no reason to doubt that or that his "first concern is the students."

The Legislature has pushed the money off the table for now. With that funding held up another year, Norwich has likely its last chance to speak with a strong, unified voice on behalf of consolidation here. We cannot be seen as a "schizophrenic community" (Rowland's words) angling to keep the college but unable to decide where it should be located.

Agreement is emerging that the Thames Valley campus of the college is the best place for consolidation. If the City Council is serious about keeping the college here, it had better make that abundantly clear to the governor -- and anyone else with an interest in the school -- that it has settled on the Thames Valley campus, and it must stick to its guns.

While his remarks on the college were of special interest to this region, the budget was the thrust of the governor's remarks. Without attempting to rehash all Rowland had to say, several points are noteworthy:

As far as the new budget goes, just $100 million of of more than $13 billion is at issue and politics is at the heart of the problem. Fully 80 percent of the $13.3 billion budget is locked in place. Just 20 percent is flexible -- and then only at the margins.

Rowland has said that if agreement is not reached soon, there will be no agreement until Labor Day. That would be enormously unfair, but he's right: The Legislature lacks a sense of urgency.

Nothing new there. This is the third consecutive year that the Legislature has found it necessary to meet in "special session" because members cannot do their job done in the time allotted.

"Special session" is hardly that; it has turned into business as usual. Meanwhile, the state's credit rating likely will take another hit, and cities and towns will have to keep guessing at how much state aid they might yet get.

That's unacceptable. The Legislature ought to get in line -- and fast. Put politics aside, and resolve that final $100-million sticking point.

Yes, the budget deficit has caused problems. But, to add perspective, fully 44 states are dealing with deficits, although none is as problematic as that of California (whose $38 billion deficit exceeds the total of all other state deficits).

State layoffs are unpleasant -- but not as dire as portrayed. Of the 2,800 state workers laid off in December, 1,000 have been rehired and 70 percent of the rest have been offered jobs. That leaves some 500 who will have to find work in the private sector. Rowland promised no more layoffs in the short term, so the worst is past.

Early retirements have proved a blessing. They are saving the state $150 million this year and those savings will continue because the workforce is being reduced 10 percent permanently.

A leaner workforce allows the state a shot at meaningful government reform, and that's overdue. From 1995 until this year, the cost of state workers' health benefits had increased 95 percent as their pay rose 44 percent.

Another benefit of early retirements, the governor rightly touted, is the fresh approach that young people bring to the job. They are bright, energetic and innovative. An invaluable resource.

Tourism districts statewide have been trimmed from 17 to 11 with a goal of reducing that number to five. Rowland said Connecticut, a small state, needs but one tourism district.

He may be right. But whatever the number of tourism districts, eastern Connecticut should not suffer, since two world-class casinos are located here, making this region uniquely attractive.

Taxes are up, but not inordinately. The income tax rose one-half of 1 percent and, due to the state's progressive tax structure, won't affect single filers earning less than $20,000 nor couples earning less than $40,000.

The property tax exemption should settle in at $310, down from $500. That's a difference of about $3 a week, unpleasant but manageable for most.

The transportation crisis is most acute in western Connecticut along Interstate 95. There, use of the breakdown lane is under consideration. To pay for infrastructure and road improvements, Rowland favors raising the tax on gasoline. That would be an increase in a user's tax, unpleasant but hardly unfair.

Rowland took special pleasure in pointing out that the state's larger cities -- Hartford, Bridgeport and New Haven, especially -- have become affordable, safe places to live and work. "Reality is not perception (for our cities)," he said.

He may or may not be right, but it was especially heartening to hear his upbeat comments for midsize cities; he mentioned Torrington and Norwich.

Norwich, he said, has the most potential of any city in the state. The land and the rivers make this a "lovely city" that can expect to move to the next level soon, in part, due to our proximity to the casinos. It's a city worthy of public investment.

We've known that right along. Rezoning will make this city more attractive to developers. Realization of that potential should be evident soon.