Hartford - Rep. Christopher Donovan, D-Meriden, began reshaping the Democratic majority in the state House of Representatives Thursday, as he prepares to become the chamber's new speaker for the coming legislative session.

In a press conference to announce his restructuring at the top of the 114-member Democratic caucus, Donovan said he would elevate Rep. John Geragosian, D-New Britain, a long-time lawmaker and ally of the speaker-elect, to the co-chairmanship of the powerful Appropriations Committee.

Donovan, long a proponent of extensive reform of the state's healthcare industry, also replaced the chairs of the Insurance and Public Health Committees, and shifted an often-controversial crusader for reform, Rep. Christopher Caruso, D-Bridgeport, out of his post at the head of the Government Administration & Elections Committee.

Caruso will retain significant influence, however, becoming the ranking member of the Regulations Review Committee, which approves regulations and rules promulgated by the state's executive branch.

Donovan's moves elevate Rep. Betsy Ritter, D-Waterford, to the co-chairmanship of the health committee, and moves Rep. Steve Fontana, D-North Haven, to the insurance panel's top spot. Fontana had been co-chairman of the Energy & Technology Committee, where he clashed frequently with his counterpart, Sen. John Fonfara, D-Hartford.

Not present at Donovan's press conference was Rep. Denise Merrill, D-Mansfield, the exiting co-chairwoman of the Appropriations Committee, who will become majority leader. Merrill is slated to announce her own deputies next week.

Geragosian, who has served on the Appropriations Committee for all his 14 years in the legislature, said he was “jumping for joy” at being selected for the chairmanship, notwithstanding the substantial budget deficits his committee will confront in writing a new two-year budget for 2010 and 2011.

”The quicker we take our medicine, the better off we are,” Geragosian said, anticipating potentially painful budget cuts. But in interviews after the press conference both he and Rep. Cameron Staples, D-New Haven, the co-chairman of the Finance Committee, also emphasized their desire to avoid some of the most damaging reductions, including state layoffs that would drive up the unemployment rate, and cuts in municipal grants that would result in service cuts or tax hikes by local government.

”That's a tax hike - don't be fooled,” Geragosian said of reducing municipal aid.

”There's just not that much to cut in Appropriations,” Staples said, “and cuts they make in grant programs will directly drive up local property taxes.”

Staples said leaders “don't think we'll be raising taxes any time soon,” but said the Finance Committee will begin a comprehensive review of existing tax exemptions and breaks that might be suspended or eliminated to raise revenue.

Meanwhile, Donovan has reshaped the ranks of the caucus leadership - doubling the number of deputy speakers to six, and promoting a number of lawmakers to the largely honorary positions of assistant majority leader and assistant majority whip.

With the posts will come higher paychecks for those elevated to new positions.

Rank-and-file lawmakers will earn $28,000 annually for the 2009-10 legislative session, while chairmen, assistant leaders and whips take home $32,241. Deputy speakers and majority leaders will earn $34,446.

Donovan will earn $38,689 per year as speaker.

T.MANN@THEDAY.COM

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