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Assembly talks late into the night on budget
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MADISON - While discussions in the state Assembly on the biennial budget went late into the night Friday, 80th District Rep. Brett Davis expressed the frustration he and his Republican peers were feeling.

"We're not a part of the process at all," he said from the Capitol during a break in Friday's proceedings.

Actually, debate over the budget threatened to go into Saturday morning as of the Times press time Friday. But it was mostly Republicans doing the talking on the floor. Democrats, Davis said, were mostly quiet.

"All the decisions have been made," Davis, R-Oregon, said. "Everything's been done behind closed doors."

Davis called it an "ugly process."

Democrats control the Legislature and the governor's mansion, so there was little doubt Friday as to the final outcome of the budget debate. Weeklong closed-door talks between Democrats to hammer out differences on parts of the budget delayed the debate from Thursday until Friday night.

Democrats were trying to gather enough support for a plan solving a $6.6 billion shortfall, the largest in state history.

They showed no willingness to accept any changes offered by Republicans in the first five hours of debate. More than a dozen were rejected, and more than 100 others were expected to be taken up.

There's plenty not to like in a budget that raises $2.1 billion in taxes and fees, lays off up to 1,400 state workers, requires 16 days of unpaid leave for state employees, cuts most agencies' budgets by 6 percent and taps $3.7 billion in federal stimulus money to balance.

It also includes a number of hot-button social issues that have little to do with the state's balance sheet but that would have trouble passing on their own: legalizing domestic partnerships for same-sex couples, letting felons out of prison early and creating a driver's card for illegal immigrants.

The budget also likely will result in higher car insurance rates by requiring higher minimum insurance coverage, and raise the price of gas 4 cents a gallon through a new tax on oil companies.

All 46 Republicans were expected to vote against it. Democrats needed 50 of their 52 members to support it, but Rep. Nick Milroy, D-Superior, was absent to be with his wife who was in the hospital. There is one independent lawmaker.

"The budget before us in the most simplest terms is a fair-share budget," said Assembly Majority Leader Tom Nelson, D-Kaukauna, at the start of debate. "Everyone is asked to do their fair share. To pay their fair share and sacrifice their fair share."

Assembly Minority Leader Jeff Fitzgerald, R-Horicon, said no matter what Democrats argued, the general public understands the budget raises taxes. He cited a new 75-cent monthly fee on all phones and projections that property taxes will go up 3.2 percent this year on average-valued homes.

"The taxpayers are losing out," Fitzgerald said.

There are no general sales or income tax increases or payroll tax hikes, which Doyle and Democrats say will protect middle-class taxpayers from being hurt under the plan. Income taxes would go up for households earning more than $300,000 a year.

Democrats said they protected middle-class taxpayers while also solving the shortfall that resulted from the recession and a dramatic drop-off in state tax collections.

Under the $62.2 billion two-year budget, which starts July 1, overall spending including federal stimulus money would increase about 6.3 percent while state tax-dollar spending would drop 3.2 percent.

Assembly Democrats were proposing some changes from the budget that passed the Joint Finance Committee last month. One of the most significant was removing a change in the state's liability law to make it easier to collect damages in cases where more than one party is at fault. Trial attorneys and Gov. Jim Doyle pushed the change, but the business community and Republicans opposed it.

Davis said his biggest objection is that the state is relying too heavily on federal stimulus money to prop up the budget - money that won't be available in two years. He said the stimulus money should be used to create jobs and improve the economy, not to spend on existing state programs.

"Two years from now it's going to be 10 times worse," Davis said. "Now is the time to make the reforms."

Davis said the budget favors Madison and Milwaukee while hurting everyone else.

"If you live in Madison or Milwaukee, I think you're really going to like this budget because you're getting a lot of stuff," Davis said. "That sucking sound you hear coming from Green County and south central Wisconsin is going right to Madison and Milwaukee."

- The Associated Press contributed to this story.