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Senate Committee OKs Democrats' Budget Plan

Bill Differs From Republican Proposal

UPDATED: 8:05 am CDT March 21, 2008

The state Senate Democrats' plan for solving the current budget shortfall was voted out of the Senate budget committee on Thursday and is expected to be debated by the full Senate Tuesday.

However, the legislation is entirely different from the budget fix backed by the Republican-controlled Assembly.

The Senate version includes a tax on hospitals and the closing of tax loopholes corporations use. It also would authorize a car rental tax increase to pay for a three-county rail line.

All three ideas are opposed by the Assembly's Republican leaders.

Only one of the three -- the hospital tax -- is included in the plan offered by Democratic Gov. Jim Doyle to plug a $527-million shortfall.

Doyle spokeswoman Jessica Erickson said that that with the Senate and Assembly plans now on the table, it's time to get to work on a compromise.