Gov. Jim Doyle unveiled his ""fiscally responsible"" budget Tuesday at the Capitol, promising to cut taxes, invest in schools and jobs and create a $130 million surplus by 2009. However, critics questioned whether Doyle's controversial measures of obtaining revenue are at all possible.
Fiscal Responsibility and the Economy
Doyle emphasized the urgency of balancing Wisconsin's budget, in light of what he called ""the tremendous hole the state got itself into in the 1990's."" Doyle said his budget cuts spending at state agencies by 2 percent, cuts prisoner health care costs and replaces bureaucracy with new technology, eliminating over 700 state jobs.
These ""hard cuts"" are necessary to avoid long-term challenges and a dismal economic future, according to Doyle.
""Unless we make hard choices now, the choices we'll face in just a few years will be unbearable, eroding the quality of our schools, laying off thousands of police and firefighters ... or higher taxes for everyone.""
Yet some policy makers feel Doyle is hiding facts behind a cloud of smoke, citing the $1.7 billion increase in the projected budget.
""Anything that's not nailed down, even some things that are, is going to be taxed,"" said state Rep. Mark Gundrum, R-New Berlin.
Doyle introduced various job creation initiatives, including the Wisconsin Venture Center, to promote entrepreneurship and investing.
Nearly all politicians present stood in ovation after Doyle stated the importance of work. ""There's no better social program than a good-paying job,"" Doyle said.
Referring to the emergence of California as the new Dairy State, Doyle said tax credits will expand and modernize Wisconsin cheese productions.
""With all due respect to our friends in California, the happiest cows come from Wisconsin,"" Doyle said. The crowd loosened their ties and laughter ensued.
Taxing Big Oil
One of the most unconventional ways Doyle seeks a budget surplus is a 2.5 percent oil tax increase. Doyle maintains this increase will not affect consumers, only big oil companies.
Speaker of the Assembly Mike Huebsch, R-Neenah, said the tax has merit, but questions its logistics. Huebsch said he is skeptical that the state can prevent oil companies from passing this onto consumers by raising gas prices.
""He's not giving us any of the details. I have no idea of the legal ramifications,"" Huebsch said.
Gundrum said to look for a 6 to 10 cent increase per gallon at the pump.
Education
To help fund some initiatives outlined in his budget, Doyle proposed raising the college tuition. Wisconsin residents can expect a hike in tuition from $4,700 to about $6,000 at state universities by 2011.
Still, state Rep. Spencer Black, D-Madison, said, ""the tuition increase is modest.""
Doyle guaranteed students currently on financial aid would not pay for the increase. His budget provides $225 million to the University of Wisconsin growth agenda, which oversees financial aid.
Wisconsin will remain the second most affordable Big Ten university under Doyle's budget plan.
Health Care
Doyle reviewed his plan to provide health care for 98 percent of the state.
With the help of the Medicaid system, Wisconsin will acquire $575 million of federal money. To earn this money, state hospitals will have to pay a tax. Doyle's budget promises federal compensation for such costs.
Huebsch is especially concerned about the hospital assessments and worries it will force hospitals to raise the costs of their care: ""You can't tax the sick and in any way hope to drive down health care costs,"" he said.
What's next
Gundrum expects months of talks between the Assembly and Senate to lead to a budget that ""won't look like anything that was proposed tonight.""
In upcoming weeks Huesbch said the legislators will closely review the fine print of the budget and negotiations follow.
