Democrats Offer To Drop Health Care Plan In Return For Tax Hikes

MADISON, Wis. -- Democrats made a concession Friday in Madison, offering to drop their $15 billion universal health care proposal as long as Republicans agreed to a variety of tax increases in the state budget.

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The Legislative conference committee met again to try to make progress on a budget Friday, 83 days after the state budget was due.

"The Democrats offered what we consider to be a big step forward and an opportunity to break the budget logjam. Democrats today said, 'No more excuses.' We said, 'No more piecemeal budgeting. It's time to get this budget done,'" said Senate Majority Leader Judy Robson, D-Beloit.

But Republicans balked at being forced to accept tax increases on hospitals and cigarettes, and a $175 million fund transfer, in exchange for Democrats dropping universal health care. Republicans said that the proposed tax increases total more than $1.5 billion.

"You cannot go back to the eighth highest-taxed people of this state and tell them they have not done their fair share, that they are not paying enough and that they in fact owe the state government more. We cannot do that," said Assembly Speaker Mike Huebsch, R-West Salem.

Democrats are now pushing Gov. Jim Doyle's proposal to expand BadgerCare to include all Wisconsin children and an additional 70,000 adults without health insurance.

Doyle said he will meet Monday morning with legislative leaders for a marathon budget bargaining session. Huebsch said Republicans will review the latest proposal and get back to Democrats on Monday.

"We can't have proposals that (say), 'We'll get back to you tomorrow,' or the next talk is two days later. That all now has to happen in a matter of hours and days to get a budget done on time," Doyle said.

Doyle said the budget needs to be done by next Friday to avoid a possible $600 million property tax increase caused by schools and local governments not having additional state money.

As for the Healthy Wisconsin universal health care proposal, Robson said it will be introduced as a stand-alone bill.

The state budget was due July 1.