Gov. Doyle vetoes 81 items in budget

MADISON, Wis. (AP) - Gov. Jim Doyle left most of the $62 billion state budget alone before signing it into law Monday.

The Democratic governor cut about $10 million in spending with his 81 vetoes, which touch on some of the more contentious parts of the two-year spending plan. But given that Democrats control the Legislature and worked out the deal in consultation with Doyle's office, most of the vetoes were relatively minor.

The dollar amount vetoed was just 0.017 percent of the total budget.

Democratic lawmakers and Doyle said they did not expect any override votes.

Doyle pushed lawmakers to act quickly so the cuts and tax increases could start soon to address Wisconsin's projected $6.6 billion budget shortfall, the highest in state history.

Wisconsin also faced losing about $89 million in federal money if the budget wasn't enacted by Wednesday, the start of the new budget year. Monday's signing marked the first time since 1977 that a state budget was enacted on time.

Doyle, at a signing ceremony outside his residence along Lake Mendota, touted that the budget contained no general sales, income or payroll tax increases.

He said priorities he laid out when he introduced the budget in February were met, including protecting the middle class and making deeps cuts along with targeted tax and fee increases while protecting education, local services and health care access.

Republicans have assailed the budget for its $2.1 billion in tax and fee increases, calling it an irresponsible plan that will hurt businesses and other taxpayers. They called for deeper cuts to balance the budget but were powerless to stop Democrats who hold majorities in both the state Senate and Assembly.

Assembly Minority Leader Jeff Fitzgerald, R-Horicon, on Monday called it "a terrible budget riddled with pork projects, job-killing special interest policy items and billions in new spending."

His brother, Senate Minority Leader Scott Fitzgerald, R-Juneau, faulted Doyle for not using his veto power to remove items from the budget that were largely policy related and didn't have anything to do with balancing the state's books.

"The Legislature's main priority should be growing jobs and reducing the tax burden on Wisconsin working families," Scott Fitzgerald said. "Instead, the Democrats are haphazardly increasing taxes and fees that will harm our state and threaten its future financial and economic health."

Untouched by Doyle's vetoes were a new 75-cent tax on cigarettes and a 75-cent monthly fee on all phone users. Other Doyle initiatives, including a higher income tax bracket for households earning more than $300,000 a year and lowered capital gains exemptions from 60 percent to 30 percent, also remained in tact.

Doyle made some changes with his veto power, including:

- Removing a proposed Milwaukee Transit Authority that could have levied up to a 0.65 cent sales tax increase to pay for transportation improvements and other county expenses.

- Lowering the money available each year under a revamped film tax credit program from $1.5 million to $500,000.

- Eliminating money for a new, fourth staff position in the lieutenant governor's office.

- Doing away with proposed higher increases in how much liability insurance car owners must carry. The minimums would rise next year, but additional hikes in 2011 and 2012 would not occur.

The spending plan includes 6 percent cuts to most state agencies. It will result in all state employees being furloughed for 16 days over the next two years, force about 1,400 to be laid off and rescind 2 percent pay increases.

It does not include a new tax on oil companies that Doyle had proposed, which was removed by the Legislature. Doyle said he still supported the idea, despite questions over how it could be constitutionally implemented.