Gov. Jim Doyle announced an increase in Wisconsin's projected budget deficit and presented steps to move the state out of its current economic struggles at a news conference at the state Capitol Thursday.
The deficit projection increased from $5 billion to $5.4 billion for the 2009-'11 biennium, and according to Department of Administration Secretary Michael Morgan, it is the worst deficit in Wisconsin history.
The state already faces a $346.2 million budget shortfall for the 2008-'09 fiscal year, Morgan said in a letter to Doyle. According to Doyle, this current deficit might have to be resolved in another budget repair bill or in the next legislative session.
Doyle said one of his main concerns is maintaining the quality of Wisconsin's schools despite necessary spending cuts.
I am going to do everything I possibly can do to protect schools,"" Doyle said, but added they will still be affected by efforts to reduce the deficit.
Doyle outlined several short-term solutions to the deficit, including reducing state agency spending by an additional $20 million, keeping about 3,500 government jobs unfilled, selling 500 state fleet vehicles and stopping all employee bonuses.
""We must balance the budget,"" he said. ""We are not the federal government. When we are in difficult financial circumstances, we can't just say, 'well, that's all right' '¦ we don't have that option.""
Doyle did not mention any specific cuts to the UW System. However, UW-Stout Chancellor Charles Sorensen has already reacted to Doyle's comments.
""This is going to be a hard two or three years coming up,"" Sorensen said in a statement. ""We feel it is important to start planning for how we will handle a significant budget reduction.""
State Rep. Jeff Fitzgerald, R-Horicon, said in a statement lawmakers should not react to the deficit by raising taxes on Wisconsin residents.
""Families in Wisconsin have been dealing with tight budgets for quite some time '¦ we simply cannot turn to struggling families and ask them to send more money to Madison,"" he said.
Assembly Speaker-elect Rep. Mike Sheridan, D-Janesville, said in a statement he trusts Doyle's leadership through the budget crisis, but it should not be a partisan issue.
""This is not a Democratic problem or a Republican problem, this is a Wisconsin problem and all of Wisconsin must be involved in the solution,"" Sheridan said.
