State budget proposal calls for $69 million in cuts

BY JOURNAL TIMES STAFF AND ASSOCIATED PRESS

Tuesday, May 13, 2008 11:40 AM CDT

MADISON — Changes made to fix the state’s $527 million budget shortfall won’t directly affect most taxpayers under a deal announced Monday.

But the plan announced by legislative leaders is far from a done deal. Gov. Jim Doyle blasted key parts of the proposal, saying it has "very significant problems."

The plan does not include a general or sales-tax increase, although some companies will pay more. State government would be cut by $69 million, but it’s not clear yet where those reductions will be made.

The most notable aspects of the revised state budget for Racine County are the items that didn’t make the cut, local legislators said.

"It’s really statewide policy and doesn’t hit Racine in a special way," said Sen. John Lehman, D-Racine. "In terms of the local effect, it’s more what wasn’t in."

The agreement did not include authorization of the proposed Kenosha-Racine-Milwaukee rail line.

"We just missed an opportunity to get that moving," said Assembly Minority Leader Jim Kreuser, D-Kenosha, at a Monday press conference. "I think we’ll look back and say, ‘This was a time we should have got it in.’ "

Lehman and Rep. Cory Mason, D-Racine, also said they were disappointed KRM did not make it into the budget.

Also left out was a hospital tax that would have been covered by an increase in federal money, supported by the Wisconsin Hospital Association, including Wheaton Franciscan-All Saints hospital, 3801 Spring St.

"The Republicans just wouldn’t agree with that," Lehman said.

Sen. Mary Lazich, R-New Berlin, said after examining the memo from the Legislative Fiscal Bureau, she saw spending had been added in some portions of the proposal.

"I am shocked to see that there is increased spending in this," Lazich said. "It just makes absolutely no sense at all. I do not support this."

The most immediate affect is that summer road work is no longer likely to be delayed. Rep. Bob Turner, D-Racine, and Rep. Robin Vos, R-Caledonia, both said they were glad the transportation segment of the budget had been resolved, since there are many road construction projects in the works in the county.

Doyle had warned that the work would be delayed or scaled back without a budget deal by today, when bids were to be let, but he said those now should go forward.

"I’m ultimately pleased that we were able to come up with some creative solutions that didn’t put the onus back on taxpayers to cover the shortfall," Mason said.

The Legislature is expected to vote on the deal later this week. Doyle vetoes are sure to follow.

Doyle doesn’t like two central parts of the plan: delaying $125 million in school aid payments and refinancing tobacco settlement bonds to immediately capture $209 million.

The Senate was scheduled to vote on the bill today with the Assembly following on Thursday.

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