Governor signs state budget

MADISON - It's been 32 years since Wisconsin's budget got done on-time.

"Today for the first time since 1977 this budget will be enacted before the start of the new biennium," said Governor Jim Doyle.

On the lawn of the executive residence Governor Doyle signed the $62 billion dollar budget. But he and lawmakers say getting to the deal wasn't easy.

"It was extraordinarily difficult," said democrat senator Mark Miller, who also co-chairs the joint finance committee. "And we had to make a number of cuts in services the state normally pays for."

"None of us have enjoyed making deep cuts. Particularly at a time when people need the services the most," said Doyle.

The governor says cuts of more than $3 billion were made, the largest ever in state history. But he says there is a bright side for the middle class.

"The budget I signed today, with the help of the democratic majorities, does not raise sales tax and only raises income tax only on income over $300,000 in this state," said Doyle.

"They continue to talk about they didn't raise the sales tax or income tax but they raised every other tax they could get their hands on," said senate minority leader republican Scott Fitzgerald.

For example Fitzgerald points to a 75-cent monthly fee for all phones. The state also raised the cigarette tax 75-cents a pack.

"$5 billion in tax increases in five months. That's what we've seen from one party control," said Fitzgerald.

The governor did veto 81 items in the budget, which reduced spending by more than $10 million. And he says the budget, with the vetoes, will help to set the stage for a strong recovery for the state in these tough economic times.

Some of those 81 vetoes include:

- Further reducing the state's film-tax incentive program. The governor says the current credits are excessive.
- Eliminating a $15 non-resident boat sticker claiming the provision would keep tourists away.
- He also slashed a new fourth full-time employee from the Lieutenant Governor's office.
- And he eliminated the creation of a Milwaukee Transit Authority.

Still in the budget, half a million dollars to repair the Grand Opera House in Oshkosh and $46,000 to buy recycle bins for the town of Wrightstown.

The 2 year budget still includes 6-percent cuts to most state agencies. The move will result in all state employees being furloughed for 16 days over the next two years. It will also lead to around 1,400 layoffs as well as take back two-percent pay increases.