In front of a joint session of the legislature Tuesday, Gov. Scott Walker presented his 2011-'13 budget, which reduces Wisconsin's projected shortfall of $3.6 billion to $250 million.
Most of the savings come from cutting $1.25 billion of aid to local government, a reduction of 9.2 percent compared to 2009. Walker said this will result in a net increase of more than $150 million because of savings in the budget repair bill, which has yet to be passed by the Senate.
""This is why it is so vitally important for the Senate Democrats to come back and do their jobs,"" Walker said. ""If they do not, our schools face massive layoffs of teachers. However, if they do come back, overall savings for schools across the state will outweigh reductions, ultimately allowing schools to put more money in the classroom.""
Outside the Capitol, tens of thousands of protesters gathered to show their continued discontent with Walker's budget repair bill, while police limited public access to people seeing their legislators and some protesters. Walker commended the protests and resulting national attention as necessary for healthy public debate.
""A great deal of attention has been focused on Wisconsin. That's okay because freedom thrives each time there is a passionate debate in our society,"" Walker said. ""Passion and civility can go hand in hand, and that's what's on display here in Wisconsin.""
Delivering the Democrats' response, state Rep. Jennifer Shilling, D-LaCrosse, accused Walker of limiting democracy by restricting access to the Capitol and said his budget cuts would hurt families and communities.
""Instead of making the tough decisions that are needed, Gov. Walker has left it to local towns, cities and counties to make the tough decisions that he is unwilling to make himself,"" Shilling said.
In addition to cutting aid to local governments, the budget saves $600 million by denying state agencies' requests, $440 million in debt restructuring and $500 million in Medicaid re-estimates and efficiencies. Walker said his budget would reduce all funds spending by $4.2 billion compared to the 2010-'11 fiscal year.
The bill limits the amount local governments could increase property taxes to prevent them from offsetting the aid decreases.
Additionally, recycling requirements and corresponding financial assistance would be drastically cut, and the early release program, which allowed decreased prison sentences for good behavior, would be eliminated, costing the state more money.
Walker's budget would provide $196 million for the Wisconsin Economic Development Corporation and eliminate the capital gains tax on investments in Wisconsin companies, costing the state $36 million. Walker said he was confident his budget would help meet his goal of creating 250,000 jobs.
""Our budget lays that foundation by freeing taxpayers to create jobs in the private sector, by limiting the size and scope of government and by focusing our government on meeting core priorities,"" Walker said. ""Where we must make reductions, we do so wisely.""
