Gov. Jim Doyle announced his proposal to repair a $652 million budget shortfall Monday, though its effects on the UW System remain unclear.
According to state Budget Director Dave Schmiedicke, $330 million in Doyle’s proposal comes from cuts in state administrative funds. Another $243 million is from funding previously intended to pay for transportation projects in the state.
State bonds would largely fund the road projects, Schmiedicke said.
UW System spokesperson David Giroux said the UW System would likely have to help lessen the shortfall in some way, but it appears Doyle is giving state agencies some discretion on how the cuts are made.
Giroux said it did not look like the budget repair bill would affect student financial aid packages. Last semester, UW System students had to wait to receive aid due to the prolonged budget process.
Despite the shortfall, Giroux said the UW System is still committed to funding the Growth Agenda, which will increase access and capacity for colleges in the state.
“We want to help play our part and help close the budget gap,” Giroux said, “but we want to preserve and protect the Growth Agenda so that we can close the education gap.”
Linda Barth, spokesperson for the Department of Administration that helps Doyle write the budget, said $21 million was set aside to fund the Growth Agenda in the state.
Doyle’s proposal also included an assessment on hospital revenues, which Schmiedicke said would allow Wisconsin to use $125 million in federal funds.
Assembly Republicans previously rejected the hospital proposal during the fall budget negotiations. Jim Bender, spokesperson for Assembly Majority Leader Jeff Fitzgerald, R-Horicon, said Republicans would not pass the hospital assessment.
“It’s still a $400 million tax increase on patients and hospitals in the state of Wisconsin,” Bender said.
Schmiedicke said 20 other states use a similar hospital assessment.
Senate Democrats have said they are in favor of the assessment. Carrie Lynch, spokesperson for Senate Majority Leader Russ Decker, D-Weston, said Decker supports the hospital proposal, but he wanted more specifics on Doyle’s proposed transfers from the transportation funds.
Lynch said Decker wanted the budget repair bill to have a hearing in the full Joint Finance Committee. She said she was unsure if budget negotiations would begin this week.
