Budget heads to Legislature with GOP pushing for fewer taxes
(Published Monday, June 11, 2007 10:47:03 AM CST)
A d v e r t i s e m e n t
By Scott Bauer Associated Press
MADISON, Wis. - Republicans who for months have said they will pass a balanced budget without any tax increases will soon get their chance to show their hand.
Assembly Speaker Mike Huebsch, R-West Salem, has staked out that position, without revealing details about where the cuts will come from to make the whole $58 billion budget balance.
Republicans on the budget-writing Joint Finance Committee gave a preview of what could come, floating motions to cut the income tax and reject Gov. Jim Doyle's proposals to raise a variety of taxes, including those on cigarettes.
The Republican tax cut proposal offered in the budget committee "borders on mindless," said Sen. Bob Jauch, D-Poplar.
The committee, which is evenly divided between Republicans and Democrats, finalized its budget proposal on Friday without approving the GOP tax cuts. But its plan could mean little in the coming months, as both the Senate and Assembly are expected to pass drastically different versions of the budget.
And then a conference committee will have to work out the differences.
Even then, it's not a done deal.
Doyle can use his expansive veto power to again shape the budget more to his liking.
"This is not a budget for the big oil companies or the big tobacco companies," Doyle said in a statement after the budget passed, praising the committee's work. "It is a budget for the middle class and provides real opportunity to our citizens."
But Republicans on the budget committee decried the budget for its numerous tax increases impacting property owners, smokers, hospitals, oil companies, Internet users, and drivers, among others.
"I would say as you walk out today, government wins and property tax payer loses," said the committee's co-chair, Rep. Kitty Rhoades, R-Hudson, prior to the committee finishing its proposal.
Doyle said that, while the political parties will disagree, it is critical that both sides work together and pass a budget on time.
What happens in the Legislature will be dictated heavily by party politics, with both sides staking out ideological positions and attempting to please their core constituencies.
Rep. Pedro Colon, D-Milwaukee, said Republicans on the budget committee did a great job making points on policy issues, but their proposals weren't responsible governing because they didn't result in a balanced budget.
Based on Huebsch's promises, the budget that comes out of that chamber will basically continue current spending and not raise taxes to pay for any of the governor's initiatives. And Senate Democrats may attempt to inject a universal health care package.
Legislative leaders have been tightlipped about which of their priorities they are willing to sacrifice.
If Republicans budge on raising the cigarette tax or the new tax on big oil companies, Democrats may have to give up on its hospital tax and universal health care.
None of the major issues were worked out in the finance committee. Instead, Republicans and Democrats deadlocked on 8-8 votes, which meant Doyle's proposals remained in the budget.
For his part, the governor said last month he is optimistic the budget can be passed and signed into law sometime in July. Even if there is no agreement when the new fiscal year starts July 1, state government will not shut down. Instead, it will continue on based on current spending.
