MADISON, Wis. -- Gov. Jim Doyle said Thursday that up to 1,100 state workers could be laid off to deal with an ever-growing state budget shortfall.

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The governor also said Thursday that most state workers will have to take 16 unpaid days of leave over the next two years starting in July.

Doyle said 700 jobs could be lost as part of a 5 percent cut to state agencies he is proposing Thursday. The governor proposed rolling back a 2 percent pay raise for non-union employees, and he said another 400 jobs could go if the state workers union doesn't agree to give up a 2 percent pay increase scheduled to start in June.

Doyle said the furloughs will apply to all workers except those in 24-hour care facilities, such as prisons and state hospitals.

He is not proposing tax increases but would not promise to veto anything the Legislature might pass.

Doyle said Thursday that the state's budget deficit has gotten worse since April, when tax collections dropped off steeply in personal income, and Doyle is now estimating that the state's budget deficit could grow as much as another $1.5 billion.

That means after the budget repair bill passed earlier this year, the state could be in the red more than $6 billion over the biennium.

"We are facing tougher choices than ever about what level of state services we can sustain at a time when people need them the most," Doyle said.

Doyle said the layoffs, pay cuts and furloughs could save the state more than $180 million a year before any cuts to state agencies.

Doyle's budget director, Dave Schmiedicke, unveiled a rough outline of the plan Thursday. Details were still being worked out with legislative leaders and others.

While not announcing specifics, Doyle said he plans to make significant cuts to state government and shared revenue.

"There will be much deeper cuts in state government spending. I think it's fair to say that they will be at least 5 percent from the cuts already proposed in my budget," Doyle said.

The governor is also proposing cuts in aid to schools and local governments.

Some Republicans said they think cuts should have come sooner.

"Yes, it's the right direction, but we should have started a lot earlier," said Sen. Alberta Darling, R-River Hills, a member of the Joint Finance Committee. "We knew in January, we knew last fall, that we were not going to be projecting the revenues that we had planned for in this budget. We could see the handwriting on the wall. We should have stopped right then and said, 'Let's figure out what we can cut right here.'"

The State Fiscal Bureau will release official projections on revenue collections for the biennium next week, and that's when Doyle and lawmakers are planning to make decisions on what else to cut.

"Today we have an opportunity to reveal the character of our state. I hope that in a few weeks I can come back and tell you that we have faced this challenge," Doyle said.

Doyle said he plans to resubmit a budget plan to the Joint Finance Committee as soon as possible.

The chairs of that committee, Sen. Mark Miller (D-Monona) and Rep. Mark Pocan (D-Madison), released a statement Thursday afternoon.

"We remain committed to minimizing the impact of this deficit on working families. Those who have been hit hardest by the national economic crisis should be as insulated as possible from any further negative effects. Given the size of the deficit, however, every option must be on the table at this point," they said in a statement.

State Employees Face Furloughs

At a time when many are already feeling a financial pinch, mandatory days off without pay is a tough sell.

Under the governor's proposal, almost all of the roughly 60,000 state workers would have to take 16 days off work without pay over the next two years.

Some workers said they're unsure what they'll do to balance their personal budgets with what could amount to as much as a 5 percent pay cut.

"I've already been adjusting my budget," said Chan Voltz, who works for the Department of Workforce Development. "I look forward to the future and better days. Hopefully they'll come sooner rather than later."

"I think a lot of us weren't surprised, but obviously we're disappointed," said Holly Strop, an attorney for the insurance commissioner. "I understand why the governor has to do it. My thought is maybe we agree to do this over the next two years, to help the budget, but in the end, do we get paid back? This is a forced pay cut for us and I just bought a house."

Some state workers said they're also wondering what the workload would be like if 700 of their colleagues are laid off, which could be a result of the proposed cuts unveiled Thursday.

"I'll do whatever I can. I love my job, and if that's what I need to do to keep my job, I'm dedicated to working for the state and, in particular, working for the (Department of Natural Resources)," said Katie McMahan.

Some employees said they aren't happy that elected employees took their raises last year.

"When legislators decided not to take a pay cut, or to accept their increases, I think that for us was a little bit of a kick in the pants. We're all in this together, we should all kind of weather the storm," Strop said.

The governor can't be furloughed, but Doyle said he's doing his part by giving back 16 days worth of pay over the next two years.

State workers said the governor is in a tough spot and had to make a tough choice, but some said the timing, a day after State Employee Recognition Day, could have been better.

"Here's the last two days, where one day you're recognized for everything you do and sacrifices will have to be made, and 24 hours later you get a message saying you're going to have to take eight days of unpaid leave time (this year)," Voltz said.

"It's hard times I guess. That said, we have jobs. We have pretty good benefits, but I think it's disappointing," Strop said.

Several workers said the furloughs should show that state jobs aren't as cushy as the public might sometimes perceive, pointing out that they've given up raises over the years to save their benefits, which they're now being asked to pay even more for.

The Department of Administration confirmed that there were furloughs in the early 1980s for selected employees but not nearly to the extent of Thursday's announcement. The DOA said there are no state records kept to know if there were furloughs before that.

Local Governments Could See Trickle Down Effect Of Cuts

Most local governments are watching and waiting to see what the numbers look like in the state's budget plan. Since the plan unveiled Thursday is just a proposal, local leaders said it's hard at this point to determine what the impact will be in the end.

In Madison, Mayor Dave Cieslewicz said the cuts could be severe. In a meeting Wednesday, the governor told mayors in the state that shared revenue could be cut 5 to 10 percent. In Madison, that would be about $400,000 to $800,000.

Cieslewicz said that until the city knows the full details, everything is on the table in terms of cuts.

"I can't responsibly take anything off the table, so furloughs or potential layoffs are there. But that's definitely a last resort, as far as I'm concerned," Cieslewicz said. "I want to protect basic services -- police, fire, streets -- but at this point, we don't know enough for me to be able to take any of those off the table."

Fitchburg Mayor Jay Allen said that his city doesn't get much shared revenue to begin with. He said the proposed cuts by he governor could mean $20,000 to $25,000.

Verona Mayor Jon Hochkammer said the cuts will impact local government and that it's something his city has been prepared for.

If needed, Hochkammer said the city will dip into its rainy day fund to avoid drastic cuts to programs and services.