One thing Democrats and Republicans in Wisconsin can agree on is that there will be no easy solutions to the state's budget problems. Of course, there will always be partisan disagreements on how to bridge gaps like the current $5.7 billion chasm in the state's budget.
Gov. Jim Doyle on Tuesday unveiled his proposed solutions during a sobering address in Madison. Because his Democratic Party now controls the Legislature, Doyle is likely to get his way relatively easily.
His plan is a mix of tax increases, spending cuts and federal stimulus payments. It avoids raising general sales taxes and income taxes. But it takes another tax chunk from smokers and focusing on increasing taxes or closing loopholes on wealthy individuals and families and businesses.
The immediate and expected reaction from Republicans was to criticize the governor for balancing the budget on the backs of taxpayers and businesses. The reality is that $5.7 billion is not going to be bridged reasonably without increasing taxes. About a quarter of the Doyle's approach to make up the $5.7 billion shortfall comes through tax increases. That isn't unreasonable. Neither is the fact that he's tried to make sure the lower and middle classes of Wisconsin don't bear the brunt of the increases.
The governor also has proposed $2.2 billion in cuts to state agencies, which he says will occur without having to lay off state employees or force them to take unpaid furloughs. There also will be no delays in state income tax refunds, something that's happening in California and Kansas. Where state residents will see differences is in the closing of mobile Department of Motor Vehicle stations, two state trooper stations and 25 Department of Natural Resources service centers. These aren't welcome cuts, certainly, but their impact seems relatively minimal given the significance of the budget shortfall.
Doyle also set aside no money for state worker pay increases, and warned employees to prepare for higher health insurance costs. Again, in these tough economic times those are sacrifices the general public would expect to be made.
It is important to note that $2 billion - 35 percent of the plan - comes from the federal stimulus bill signed Tuesday by President Obama. It's a good example of the positive effects of the stimulus plan that hit close to home. It will preserve state jobs and state services.
It's also important to note that the infusion of federal cash is temporary. And while the $2 billion is a tremendous budget boost to the state now, it's not a permanent fix to Wisconsin's financial problems.
Gov. Jim Doyle on Tuesday unveiled his proposed solutions during a sobering address in Madison. Because his Democratic Party now controls the Legislature, Doyle is likely to get his way relatively easily.
His plan is a mix of tax increases, spending cuts and federal stimulus payments. It avoids raising general sales taxes and income taxes. But it takes another tax chunk from smokers and focusing on increasing taxes or closing loopholes on wealthy individuals and families and businesses.
The immediate and expected reaction from Republicans was to criticize the governor for balancing the budget on the backs of taxpayers and businesses. The reality is that $5.7 billion is not going to be bridged reasonably without increasing taxes. About a quarter of the Doyle's approach to make up the $5.7 billion shortfall comes through tax increases. That isn't unreasonable. Neither is the fact that he's tried to make sure the lower and middle classes of Wisconsin don't bear the brunt of the increases.
The governor also has proposed $2.2 billion in cuts to state agencies, which he says will occur without having to lay off state employees or force them to take unpaid furloughs. There also will be no delays in state income tax refunds, something that's happening in California and Kansas. Where state residents will see differences is in the closing of mobile Department of Motor Vehicle stations, two state trooper stations and 25 Department of Natural Resources service centers. These aren't welcome cuts, certainly, but their impact seems relatively minimal given the significance of the budget shortfall.
Doyle also set aside no money for state worker pay increases, and warned employees to prepare for higher health insurance costs. Again, in these tough economic times those are sacrifices the general public would expect to be made.
It is important to note that $2 billion - 35 percent of the plan - comes from the federal stimulus bill signed Tuesday by President Obama. It's a good example of the positive effects of the stimulus plan that hit close to home. It will preserve state jobs and state services.
It's also important to note that the infusion of federal cash is temporary. And while the $2 billion is a tremendous budget boost to the state now, it's not a permanent fix to Wisconsin's financial problems.
