Doyle delivers somber budget with program cuts and tax hikes

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• Click for Text of Gov. Doyle's Budget Address
• Link to budget bill

The 2009-11 biennial budget Gov. Jim Doyle delivered to the state Legislature Tuesday night will cut approximately $2.2 billion and spend an estimated $2.1 billion in federal bail-out money.

The budget also includes numerous tax hikes and several social programs including a domestic partner protection program.

“The choices ahead of you aren’t the kind that most people run for office hoping to make,” Doyle told the Legislature.

One GOP leader acknowledged there is little the Republicans will be able to do to stop any items in the budget.

“With Democrats in control of all of state government, this budget will go largely unchanged and will increase the tax burden on the families of Wisconsin by billions of dollars. During a recession, raising taxes is the wrong direction,” said Rep. Jeff Fitzgerald, Horicon, Assembly GOP leader.

In his budget Doyle proposes a 1 percent across the board reduction for state agencies.

He also wants to cut the Wisconsin State Patrol stations at Tomah and Spooner and change Department of Corrections' policy so that non-violent offenders are offered choices other than incarceration.

Doyle said he was working hard to prevent the cutting of any state employees, but state workers will be faced with a pay freeze and asked to pay more of their health insurance costs. He will also leave 3,600 state jobs unfilled.

Under Doyle’s plan, hunting and fishing licenses won’t be available at Wisconsin Department of Natural Resources Centers, but will still be available at sporting goods stores.

Doyle also wants to close 39 mobile Wisconsin Division of Motor Vehicle stations and 25 DNR service centers.

The governor also wants to limit the growth of the state’s Family Care program and not move forward with his Badger Choice health initiative.

The budget will provide a $426 million increase in state and federal funding for state schools. It will also invest $25 million in Doyle’s Wisconsin Covenant program.

Doyle also hinted at other changes in education funding.

“In the coming months, I am going to present separate legislation that will allow schools more flexibility in funding if they agree to collaborate, if they find and retain the best teachers, and if they commit to becoming more efficient,” Doyle said.

The Doyle budget also spends $500 million in federal money and $69 million in state funds on transportation. It also implements a single license plate program.

On the tax side, the budget includes the implementation of combined reporting for certain corporations.

Under current law, companies which are owned by the same entity are allowed to have each company file a tax return. Under combined reporting only one return would be filed.

One area lawmaker was concerned with the increase in business taxes in the Doyle budget.

“At a time when the focus should be on jobs, we are raising taxes on business,” said Rep. Kitty Rhoades, R-Hudson.

Rhoades noted that the areas of the state that share a border with Minnesota will be impacted because the proposed Minnesota state budget eliminates corporate income tax.

“Since we are on the border it is important we stay competitive,” said Rhoades.

Doyle also wants to reduce the state’s capital gains exclusion from 60 percent to 40 percent.

He is also proposing to tax all electronic commerce. Known as the Main Street Equity Act, but commonly referred to as the I-Pod tax, this measure requires e-tailers to charge Wisconsin sales tax for any online sale.

Doyle also wants a 75 cent increase in the cigarette tax.

The governor is also bringing back his tax on the revenues of oil companies. This measure was defeated by the Republicans who controlled the Assembly in the last budget cycle, however Democrats now control both houses of the Legislature.

According to the Doyle proposal, the companies would not be allowed to increase the price at the pump to make up for the tax.

Doyle is also calling for a statewide smoking ban in the budget and for a child care center rating system.

Tags: wisconsin news, doyle, budget