MADISON, Wis. -- After a nearly four-month partisan stalemate, Gov. Jim Doyle on Friday morning signed a new two-year state budget at the University of Wisconsin-Madison.

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University of Wisconsin System officials said the budget contains "major victories" for the college system, and the governor along with leaders of both parties said it better serves people who need help -- including taxpayers.

Doyle walked into a budget signing celebration Friday at UW-Madison's Memorial Union and was warmly greeted by those on both sides of the aisle as some of the most divisive budget rhetoric in years faded into the background, WISC-TV reported.

Leaders said the deal serves a smorgasbord of interests and holds the line on spending and taxes.

Key winners, like those in higher education, praised lawmakers Friday for having vision.

"It's also an agreement among far-sighted Democrats and Republicans on the importance this university holds for the people of the state," said UW-Madison Chancellor John Wiley.

The new $57.2 billion budget gives $158 million over the next two years to the UW System and increases financial aid by $32 million.

It also funds two-thirds of Wisconsin K-12 education while expanding things like 4-year-old kindergarten, school breakfast and smaller class sizes.

Doyle said there is also plenty for middle-class families in the form of new and expanded state tax deductions for health insurance premiums, child care and tuition.

"It's also a budget that holds the line on taxes, and it's a budget that puts Wisconsin on a permanent path toward fiscal responsibility," Doyle said.

But while both parties are hailing the budget's fiscal responsibility, others are attacking it. The State Medical Society said it plans to file a lawsuit over the budget.

The group is upset that the budget takes $200 million out of a patient compensation fund for injured patients that helps hold down malpractice insurance rates. The group said the maneuver will hike health care costs and keep doctors out of Wisconsin.

"This is big national news. Everybody is going to know about this; that the government has decided to take $200 million out of this fund that has nothing to do with the state budget really," said Steve Busalachhi, lobbyist for the State Medical Society.

Doyle said the fund has enough money to make patient payments and help the uninsured.

"Why do you have all this money sitting there when we can have a fund over half a billion dollars that serves the purpose and be able to get kids insured and do some of things we want to do?" Doyle said.

Meanwhile, Doyle and Republicans claim the budget will hold down property and income taxes.

Republican Assembly Speaker Mike Huebsch said state spending is going up 3.3 percent a year, but he said that's a percentage point lower than the growth in personal income.

UW Regent Quits Over Budget

A University of Wisconsin System regent upset over treatment of illegal immigrants has quit.

A Milwaukee newspaper reported that Jesus Salas has sent a resignation letter to Doyle. Salas accuses Doyle in the letter of not fighting hard enough after lawmakers stripped a provision from the state budget that would have lowered tuition for some children of illegal immigrants.

He goes on to say that he's angry Doyle signed laws requiring proof of citizenship to get a driver's license and prohibiting a state agency from giving illegal immigrants subsidized home loans.

Doyle appointed the Milwaukee resident to the board in 2003.

Summary Of Doyle's Vetoes To State Budget

Here's a summary of budget vetoes that Doyle issued on Friday:

Free Shots

Free shots of liquor won't be allowed at grocery stores. Doyle vetoed a provision added to the budget late in negotiations, calling it absurd. Free wine and beer samples continue to be legal.

Wine Distribution

A new wine distribution system that small Wisconsin wineries complained would hurt their business got vetoed. Doyle said the new system wasn't well thought-out.

Property Taxes

Doyle loosened property tax limits on local governments from 2 percent this year to 3.86 percent, largely because the budget passed so late and governments were already close to completing their budgets. A 2 percent cap in place the past two years expired in January. In 2008, the limit will be 2 percent.

Technical Colleges

A new 4 percent cap on property tax levy increases by technical colleges was eliminated. Doyle said imposing limits on them would result in higher costs for students or fewer course offerings. He says the limits would hurt technical colleges' ability to help the state's economy.

Chronic Wasting Disease

Doyle allowed the state Department of Natural Resources to ask the Legislature for more money to fight chronic wasting disease. The budget state lawmakers passed cut $2.1 million from the agency's CWD funding and limited how much money from the state's conservation fund could be used to combat the disease.

Very Few

Doyle says his vetoes were the fewest made by a governor in the past 35 years. Most of them were largely technical. One major reason was Doyle worked closely with lawmakers on a budget deal, so there were few surprises in the four month late agreement.

Overrides

It takes two-thirds of the Senate and Assembly to override a veto. But because so few were made, and most were either expected or non-controversial, no overrides are expected.

Milwaukee Mayor's Reaction

"The State Budget signed today (Friday) by Gov. Doyle contains a number of provisions that are positive for the City of Milwaukee. The investments in UWM, the Medical College and a Milwaukee School of Public Health will produce huge dividends for our City's health and economy.

The expansion of BadgerCare will benefit our children and families, and the funds for summer youth employment will allow us to introduce more Milwaukee teens to the world of work.," Milwaukee Mayor Tom Barrett said in a news release.

"Unfortunately, the Republican majority in the Assembly left a Shared Revenue increase on the cutting room floor. That means State Shared Revenue for local communities will be frozen for the 12th consecutive year.

And as State Shared Revenue for local communities has declined by $60 million since 1995, the State's GPR support to other efforts during that same time has grown collectively by more than $4.3 billion.

Growth in State Shared Revenue is essential to provide property tax relief, deliver basic city services, and maintain local governments’ ability to invest in priorities like public safety. Yet for Milwaukee, inflation-adjusted State Shared Revenue and Expenditure Restraint Aid payments have declined $70 million since 1995," Barrett said.