Republican budget relies on massive cuts to avoid tax increases
(Published Tuesday, July 10, 2007 10:21:19 AM CST)
A d v e r t i s e m e n t
By Scott Bauer Associated Press
MADISON, Wis. - A Republican budget proposal that rejects Democratic-backed tax increases relies on deep cuts to education and state government operation in order to balance.
More a wish list than anything that likely will become law, the budget released Monday to be debated on Tuesday would cut the University of Wisconsin System by more than $100 million, reduce funding for public schools by at least $85 million and require state employees to pay more for health insurance.
Not in the plan are Democratic-supported plans to institute a universal health care system, impose new taxes on big oil companies and hospitals, and raise taxes on tobacco products.
The Assembly Republican proposal, just like its counterpart in the Senate that passed last month, will see many changes before it becomes law.
It will take a special bipartisan committee of lawmakers from both chambers to reach a consensus on the budget and Gov. Jim Doyle, a Democrat, will have to sign off on it. And even then Doyle will get a chance to rewrite the budget with his broad veto power.
While Assembly Speaker Mike Huebsch has said the Republican plan worked by cutting government and not raising taxes, Assembly Minority Leader Jim Kreuser, D-Kenosha, said it was not workable or reasonable in the long haul for the state.
"This is an extreme, irresponsible budget that works against the needs of Wisconsin families," said state Department of Administration Secretary Michael Morgan, speaking on behalf of the Doyle administration. "Its an assault on our most basic values."
And Senate Majority Leader Judy Robson called the proposal "fiscally irresponsible (and) morally reprehensible."
Assistant Majority Leader Mark Gundrum, R-New Berlin, defended the Republican budget, saying it was realistic and would put more money in the pocket of taxpayers.
The Republican plan attempts to revive oft-rejected proposals from the past, such as requiring legislative approval of new casinos, while injecting new proposals such as making some sex offenders display bright green license plates.
A prohibition on new nuclear power plant construction would be lifted while a tax break for clay pigeons sold to shooting ranges would be allowed to continue. A child care subsidy that only state employees working in downtown Madison receive would be eliminated but a new tax break would be offered for investments made in certain college savings plans.
Democratic opponents and those representing special interests that were hurt under the plan stumbled over themselves to shoot it down. And given what must happen before it will become law, it is unlikely many of the most partisan changes will be enacted this year.
The Senate passed the $66 billion budget in June, after adding a $15 billion universal health care proposal and approving Doyle's tax increases on tobacco, hospitals and oil companies to pay for transportation programs and expanding health care.
None of those proposals is in the Republican plan.
Not going ahead with a cigarette tax increase shows that Assembly Republicans aren't interested in lowering the number of young people who start smoking, helping others to quit or assisting with rising medical costs, said Maureen Busalacchi, executive director of Smoke Free Wisconsin.
Busalacchi said she still expects there to be a significant tobacco tax increase once the budget becomes law.
"I would be saddened if there wasn't," she said.
The Assembly Republican budget also proposes limiting tuition increases at the UW System to no more than 4 percent a year while at the same time cutting funding to the university by more than $100 million. Cuts would hit everything from general operations to financial aid.
"Clearly there are some major cuts to the university here," said UW spokesman Dave Giroux.
University officials were poring over the proposal to tally all the cuts and determine their impacts, Giroux said.
"It's obviously a version of the budget that would create significant challenges for us," he said.
While areas like the university were in line for major cuts, Republicans also proposed a variety of new tax cuts targeting retirement income, health savings accounts, college savings and workplace wellness programs.
Tighter lids on property taxes would be in place for the next three years under the plan.
While cutting taxes drew much of the attention, Republicans supported higher fees on car and boat registrations and driver's licenses.
In fact, Republicans proposed raising the registration fee for heavy-duty trucks weighing more than 8,000 pounds an additional 15 percent.
Huebsch has said he has the 50 votes needed to pass the budget in the Assembly. Republicans hold a slim 52-47 majority.
Until the budget is signed by Doyle, agencies will continue to operate with the level of funding they received in the budget year that ended June 30. The new budget will be in place until July 1, 2009.
