Budget battle goes to conference committee

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The latest budget battle in Madison will be tossed into the hands of a conference committee next week.

The state Senate is scheduled to vote Tuesday on a third plan that emerged Thursday to wipe out the latest deficit in the current budget.

The two parties could then take months to decide how to make up for revenues that are being lost mainly because folks are spending less these days and paying less in sales taxes.

Doyle’s office sharply criticized parts of the new Democratic plan, which senators on the Finance Committee passed 6-2.

Doyle doesn’t like the fact that it pushes school aid payments into the next budget, thus delaying the problem instead of solving it and uses $65-million from the rainy day fund.

The Senate Democrats also want to close loopholes in which larger multi-state companies avoid income taxes here.

Doyle says it’ll never pass, but Senate leader Russ Decker says it’s wrong for the big firms to push their tax bills onto the backs of small businesses.

Sen. Ted Kanavas, R-Brookfield, says the move would drive companies and jobs out of the state.

The Senate Democrats are also reviving a $13 increase in car rental taxes in the Milwaukee area for a new commuter line and they want the new hospital tax to be permanent.

Doyle first proposed that it only be in effect for two years.

Tags: wisconsin_news, budget, state_budget