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State of the state: Doyle says poor economy may lead to ‘sacrifices’

By: Charles Brace /The Daily Cardinal  - January 24, 2008




20080124_news_stateofstate1_story
By: Amanda Salm /The Daily Cardinal
Gov. Jim Doyle addressed the full state Legislature Wednesday, with both sides of the political aisle expressing hesitation to some of his goals.

Gov. Jim Doyle revealed his agenda in his annual state of the state address Wednesday, with his proposals garnering praise and skepticism from both political parties.

Doyle’s speech focused largely on economic development and health care.

Uneasiness in the national economy, according to Doyle, will affect Wisconsin in the coming months and force the state government to delay funding some areas.

“We will have to make deep cuts and hard sacrifices,” Doyle said, although he also said steps like depositing $50 million in the state’s rainy day fund would help overcome current United States economic problems.

Doyle said the economy could be helped by reforming taxes on certain venture capital investments, which could encourage companies with tax breaks on research and development done in Wisconsin.

The idea of reforming the tax codes on certain investments was largely supported by Republican legislative leaders. Assembly Speaker Mike Huebsch, R-West Salem, said many of Doyle’s economic proposals would be supported by Republicans.

State Senate Minority Leader Scott Fitzgerald, R-Juneau, said he would also be in favor of reducing the tax on investments in capital, but the proposal may not be supported Senate Democratic leadership.

Senate Majority Leader Russ Decker, D-Weston, has previously stated he wanted to see more details on some of the tax credit proposals.

Doyle also proposed increasing the minimum wage to $7.25 for economic development, a goal supported by Decker.

“Governor Doyle’s support for raising the minimum wage and indexing it for inflation will help get hard-working families the raise they need to make it in this struggling economy,” Decker said in a release.

Both Huebsch and Fitzgerald said they were against the minimum wage proposal.

“The minimum wage is rarely paid in today’s economy,” Huebsch said.

Assembly Minority Leader Jim Kreuser, D-Kenosha, said in a statement he was pleased with Doyle’s agenda, and that the governor had a responsible set of goals for the uncertain economic climate. Doyle’s main health care proposal, BadgerChoice, focuses on creating a program that would try to pool health care costs across small businesses to reduce risk and decrease expenses.

Huebsch said he needed to know more details about the plan, but said he was encouraged the governor called the plan “consumer driven.” Kreuser said he supported Doyle’s health care proposal, though Senate Democratic leadership has repeatedly said they would attempt to revive the Healthy Wisconsin health care plan left out of the recent state budget.

Doyle did not support Healthy Wisconsin during the budget impasse of 2007.

State Sen. Kathleen Vinehout , D-Alma, stated she was in favor of the BadgerChoice program. Doyle continued his support for a statewide smoking ban in public places in the speech. A ban is supported by state Rep. Steve Wieckert, R-Appleton, but has not been made a priority by Assembly Republican leadership.

In the Senate, some Democrats like Sen. Fred Risser, D-Madison, support a smoking ban while others like Sen. Roger Breske, D-Eland, have said it would hurt tavern and bar owners.

Doyle also asked the Legislature to pass a bill that would make autism covered by insurance companies in the state.



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