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Budget Deal Still Eludes Governor, Legislators

Doyle, Legislative Leaders Met Thursday

Updated: 8:08 am CDT May 2, 2008

It what might seem like no surprise, a meeting of state legislative leaders and Gov. Jim Doyle on Thursday afternoon failed to result in a solution for the state's lingering budget shortfall.

The meeting was confirmed by Senate Majority Leader Russ Decker's spokeswoman Carrie Lynch. Doyle and Decker, both Democrats, are set to be joined by Republican Assembly Speaker Mike Huebsch.

Doyle's staff members and legislative leaders have been meeting in private for more than a month trying to find a deal to solve the budget shortfall.

Key elements include whether to delay a $125 million state aid to schools payment, whether to impose a new hospital tax and whether to raid money from the state's transportation fund.

A member of Doyle's administration sent lawmakers a letter saying that state payments to schools, local governments and others will have to be prorated starting in August unless the $527-million budget shortfall is solved soon.

Doyle said that the letter shows why there is an urgent need to reach a budget agreement.

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