Hospital Tax, Cigarette Tax Major Issues Dividing Two Sides

MADISON, Wis. -- A tax on hospitals and how much to raise cigarette taxes are the two biggest issues separating Republicans and Democrats working on a new budget.

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Wisconsin is the only state without a budget. It is more than 14 weeks late.

The latest Republican offer to Democrats includes much of what Democrats want. But what it doesn't include is a new tax on hospitals or the full $1.25 cigarette tax increase. Republicans are offering just a 75-cent increase.

Gov. Jim Doyle's spokesman Matt Canter said the latest offer shows that the two sides are close to a deal. But he said Republicans have caved to extreme members of the party by backing away from the cigarette tax.

Doyle has announced that a special session on the budget will be held on Monday if a compromise isn't reached before then, WISC-TV reported.

"Unfortunately, it has come to this point that we have to be called into special session," said Senate Majority Leader Judy Robson, D-Beloit.

But it remains to be seen if a special session will help both sides reach an agreement.

"Calling us into special session is a political move," said Assembly Majority Leader Jeff Fitzgerald, R-Horicon.

If nothing else, a University of Wisconsin-Madison professor said that calling a special session to resolve the state budget is historic.

"It's completely unique in terms of the budget process. And also resubmitting a budget after he's already submitted a budget has never been done in the state of Wisconsin, as far as I know of," said John Witte, a political science professor at UW-Madison.

But Witte said he doesn't think a resubmitted budget will help much in reaching a compromise.

"It really doesn't matter because the legislation could go on as it is right now, today, and I'm certain they're meeting today trying to resolve some of these issues," Witte said.

As of Wednesday, the two sides were $550 million apart in taxes and another $414 million in spending, WISC-TV reported.

"Really it comes down to hundreds of millions of dollars of additional taxes and spending," said Assembly Speaker Mike Huebsch, R-West Salem.

In addition to the hospital tax and cigarette tax increases, the sticking points include a tax on oil companies and funding levels for the UW System and the Department of Corrections.

"We made a very substantial offer which includes a half a billion dollars in cuts and also took off the table all of those taxes," Robson said.

The governor's bill that he wants taken up in special session is being drafted this week, WISC-TV reported.

Senate leaders have said they will take it up on Monday. A spokesman for Huebsch said the speaker hasn't decided whether the bill will be brought to the floor but said if it is, it will likely be voted down.

Wisconsin Athletic Director Barry Alvarez Lobbying In Capitol

Can a coaching legend break the state budget impasse?

Even though he wasn't in the Capitol on Wednesday for that purpose, Wisconsin Athletic Director Barry Alvarez said the stalled budget has come up in his talks with lawmakers.

Alvarez said everybody says it's a tough, brutal fight.

His primary purpose was to lobby for a bill that would extend a tax break to donations made by season ticket holders to University of Wisconsin-Madison's athletics department.