In Connecticut, Gov. Dannel Malloy says the state is beginning to see “real progress” as it recovers from the recession. Malloy Thursday afternoon delivered his State of the State address to the legislature.

“We are not out of the woods yet,” he said. “We have a more work to do. But together we’ve taken the more responsible path. The result is this year’s $500 million surplus.”

Malloy has proposed a small tax refund for individuals, plus a cut in taxes for retired teachers, and a sales tax exemption for some clothing purchases and for non-prescription drugs.

“It’s my belief that it can and should be a down-payment on larger tax cuts as our economy continues to improve in the years ahead,” Malloy said.

Republicans, including House Minority Leader Larry Cafero of Norwalk, criticized much of the speech as a “fantasy.” He questioned how Malloy plans to pay for the tax cuts going forward.

“There’s a lot of people that are still hurting here in the state of Connecticut and he continues to pick winners and losers without looking globally at how to increase our economy,” Cafero said.

Malloy’s speech was originally scheduled for Wednesday, but was delayed by the snowstorm. Malloy is in the final year of his term, but has not said if he’ll seek re-election.

The Associated Press and The Connecticut Radio Network contributed to this report.