Gov. Jim Doyle's 2009-11 budget proposal unveiled Tuesday calls for sacrifices from taxpayers and smokers while attempting to protect education in the midst of the largest cuts the state has ever had to make.
In light of the anticipated $5.7 billion deficit for the 2009-11 biennium, Doyle announced an across the board"" cut in state spending totaling over $2.2 billion over the next two years.
Despite these reductions, Doyle promised to protect education funding. Doyle also promised a positive balance of $270 million by the end of 2011.
The budget will provide a $12 million increase for need-based financial aid but also includes a cut of $174 million over two years for UW System schools.
""Our university system is going to have to be more resourceful, but this budget makes sure that more students in Wisconsin have a shot at a higher education and that tuition stays within the means of Wisconsin families,"" Doyle said.
UW System President Kevin Reilly said in a statement the entire UW System will be affected by these cuts, but it is too early to judge how they will affect campuses or academic departments.
""In this down economy when lots of families have serious questions about whether or not they can afford college, we and the governor agree something must be done to ensure we don't lose talented students,"" UW System spokesperson David Giroux said.
In an unprecedented move, Doyle and the UW System worked in conjunction on a plan that freezes tuition for families with an income below $60,000.
""We applaud Governor Doyle's efforts to protect higher education in Wisconsin and his recognition that quality education and research are critical to short- and long-term economic health,"" Chancellor Biddy Martin said in statement.
Doyle also announced a 1 percent tax increase on yearly incomes over $300,000 to raise revenues while protecting middle class earners. ""If you're like 99 percent of Wisconsin, you won't pay this tax,"" Doyle said.
The budget proposal includes both an additional 75-cent tax on a pack of cigarettes and a statewide smoking ban. Doyle cited prevention of youth addiction, increasing public health and decreasing state health care costs as motivations for both proposals.
""If the goal is to reduce smoking, and even further to reduce teen smoking and getting people started, it's admirable,"" Rep. Phil Montgomery, R-Green Bay, said.
Other aspects of the proposal include giving benefits to domestic partners and moving nonviolent offenders to rehabilitation programs early.
The $787 billion federal stimulus package President Obama signed into law Tuesday will help close the budget deficit, Doyle said.
Doyle promised to efficiently use Wisconsin's share of this package, which he previously predicted to be around $3.5 billion.
According to a White House statement, the American Recovery and Reinvestment Act will create or retain at estimated 70,000 jobs in Wisconsin. Wisconsin Department of Workforce Development Agency Liaison Dick Jones said the majority of the new jobs will be in the area of infrastructure.
In addition to employment, the bill focuses on increasing funding of higher education. Reilly hailed the bill as a step forward for Wisconsin students and families for its contribution to financial aid.
According to Montgomery, UW students are crucial to the future of the state.
""It is in tough times, it is in the crucible of the fire that we find ourselves now that we will come out stronger, and it will be the students at the UW right now that will lead the way,"" Montgomery said.
-Jessica Feld contributed to this report
