Gov. Scott Walker announced a new ultimatum for the 14 missing Democratic state senators Monday, saying if they do not return to Madison to vote on the budget repair bill by Tuesday, the state will lose its option to refinance $165 million in loans.
Walker's plan issues a bond to repay the $165 million over the next 10 years.
""Failure to return to work and cast their votes will lead to more painful and aggressive spending cuts in the very near future,"" Walker spokesman Cullen Werwie said in a statement. ""This is the Senate Democrats' 24-hour notice.""
The Democratic senators have been out of the state since Feb. 17 to prevent a vote on the bill. Walker originally said he would have to lay off 1,500 public employees if the bill was not passed by last Friday.
Sen. Mark Miller, D-Monona, said Senate Democrats have offered alternatives that Walker could use to avoid worker layoffs and still balance the budget. Miller had the Legislative Fiscal Bureau prepare an alternative plan that would address the budget shortfall without needing to refinance the $165 million in bonds.
""Reasonable compromises are on the table. All that we need now is for the governor and Republicans to be willing to negotiate and find a middle ground,"" Miller said in a statement.
Sen. Jon Erpenbach, D-Middleton, said Walker's plan ""kicks the can"" further down the road. He said by restructuring the loan instead of paying it off, the debt gets pushed back to the next biennial budget, costing an extra $29.5 million over the next two years.
If the $165 million in loans is not restructured, the debt payment will be due on May 1.
""If Gov. Walker is determined to miss a payment, he can miss a payment next month as easily as this month,"" Erpenbach said.
