Governor Doyle lays out budget plan

MADISON - On an ominous note, Gov. Jim Doyle Tuesday night laid out his plan to get the state out of the nearly $6 billion money hole it faces.

"This budget makes the largest cuts we've ever seen. It rejects new spending requests, however worthy," Doyle said.

He proposed reducing his original plan for the state budget by $2.2 billion, including cuts in current programs, eliminating new programs, and job cuts.

"One in 10 state jobs, or 3,600 overall, will be left unfilled. This budget does not provide for any pay raises, and state workers should expect to make higher contribution for health insurance and retirement," Doyle said.

The Governor is also counting on $2 billion from the federal taxpayer-paid for bailout program President Obama signed Tuesday.

"It helps get people to work immediately and lays a foundation for future economic growth," Doyle said. "This budget recognizes that the federal spending is one-time assistance to the state. That is why by the end of this budget, state-supported spending in 2011 will be nearly identical to what it was in 2008."

And the rest of the deficit, the Governor hopes will be made up by new revenues like:

A one percent income tax increase for earnings more than $300,000.

Another 75 cent a pack cigarette tax.

Lowering the capital gains exemption.

And a tax assessment on oil companies.

All in all, Doyle claiming the people of Wisconsin expect government leaders to get the state back on track.

"We can do that with a budget that keeps what's important, cuts what isn't needed, protects middle class taxpayers, and builds toward a better future," Doyle said.