Lawmakers Send Budget To Governor
Budget Plugs State's Record Deficit
Updated: 10:25 am CDT June 27, 2009
MADISON, Wis. -- Lawmakers gave final approval to a compromise state budget Friday evening, ending a messy process marked by days of secret meetings and all-night debates.The Assembly passed the $62 billion spending plan 51-46 Friday evening. The state Senate approved the measure 17-15 early Friday morning.The two-year budget goes to Gov. Jim Doyle, who has pushed to get the budget signed into law before the new fiscal year begins Wednesday. Doyle can use his partial veto power to extensively rewrite the document.The compromise does not include the governor's plan to tax oil company profits, and it increases capital gains taxes more than he wanted. Doyle had no immediate comment on it.The budget closes a record $6.6 billion shortfall, brought on because state agencies' spending requests outpace projected revenue with the nation's economic recession."We had to make a lot of tough decisions," said Rep. Tom Nelson, D-Kaukauna. "This is not a perfect document by any stretch of the imagination. But I think we did the best we could. (It's) a fair and compromised document. And now for the first time in 30 years, we are delivering a balanced budget on time for the governor."The Democrats are in control of the Legislature, and for the first time since 1977, the budget will be passed before the July 1 deadline."We promised to pass a balanced budget on time, and we're fulfilling both of those promises tonight," Nelson said during Friday's session."The Democrats pulled together, and we did exactly what we said we were going to do," said Rep. Mark Pocan, D-Madison.The budget cuts most state agency spending by 6 percent. It will result in all state employees being furloughed for 16 days over the next two years and force about 1,400 layoffs.Republicans on Friday criticized the budget."This is s a weak effort at economic development," said Rep. Robin Vos, R-Racine. "It is a weak effort at trying to grow our economy. In fact it is so weak, it is punitive.""This is big government at its worst." said Rep. Phil Montgomery, R-Green Day. "This is 'The Little Shop of Horrors' -- Feed me, Seymour."The budget includes a mandate that Wisconsin drivers have liability insurance, beginning in a year. New Hampshire is the only state other than Wisconsin that doesn't already have the mandate.Democratic Sen. John Lehman of Racine has pushed for the auto insurance mandate since 2001, but it's been blocked by the insurance industry. Lehman said drivers want it -- especially those who've been hit by uninsured motorists. The Insurance Research Council estimates that about 15 percent of Wisconsin drivers don't have insurance.Residents also weighed in on the budget Friday."It's going to be a deficit on the people, a burden on the people for taxes and stuff," said resident Charles Disch.Disch said he worries the budget has too many tax hikes, and he's glad Doyle's proposal to tax oil companies did not come through."We're going to pay for it sooner or later anyways," said Disch. "If that would've passed, and that would've been in there, the oil companies would've just tacked it on to the pumps.Resident Robert Lamb said he's a fan of the budget's stricter auto insurance requirements."Everybody should have auto insurance," said Lamb. "You ever get in an accident and the person doesn't have insurance? To cover the costs of the repairs -- it's outrageous."
Budget Affects Smokers, Phone Users
Cigarette smokers and car owners, phone users and high earners, state workers and prison inmates all have a reason to care about the two-year state budget that Wisconsin's Legislature passed Friday. Some of the ways the budget reaches into people's daily lives:CIGARETTE TAXES -- Cigarette taxes will rise 75 cents a pack to $2.52 beginning Sept. 1. That comes after a $1 per pack increase that started this year.HIGH EARNERS -- People making more than $225,000 a year, and households earning more than $300,000 a year, will have to pay higher income taxes effective this tax year.CAPITAL GAINS -- The tax exemption on capital gains profits, currently 60 percent, will drop to 30 percent.DIALING 911 -- Anyone who owns a cell phone, landline phone or any device that can call 911 will have to pay a new fee of 75 cents per month, which will be directed to local governments to help pay for fire and police protection.BOAT REGISTRATION -- It will cost 15 percent more to register a boat in Wisconsin, and a new nonresident $15 boat sticker will be created beginning in January.BUYING GUNS -- Prospective gun owners will have to pay $13, up from $8, to get the required background check.FILM TAX INCENTIVES -- The 1-year-old film tax break program credited with helping lure Johnny Depp and the "Public Enemies" production to Wisconsin will be eliminated and replaced with a more conservative program that film backers say wouldn't be generous enough to land A-list Hollywood stars.INMATES -- Some felons will be able to get out of prison earlier under a package of reforms designed to ease overcrowding, save money and better prepare inmates for life in the community.YOUNG CONVICTS -- Criminals up to age 25, instead of 21, could have their records expunged if they meet certain criteria.BUCKLE UP -- Police will be allowed to pull over drivers for not wearing a seat belt. Currently, police can issue a ticket for that offense only if the driver is pulled over for a different violation.SALES TAXES -- While sales taxes will not increase statewide, they could be raised in the Chippewa Valley, Dane, Milwaukee, Ashland and Bayfield counties to pay for transit needs, including high-speed rail. Rental car fees could also increase from $2 to $18 in Kenosha, Racine and Milwaukee counties to pay for a rail line connecting those three cities.TEACHER PAY -- Teachers might be in line for larger raises since the 16-year-old state law known as the "qualified economic offer," which effectively places a cap on teacher pay increases, is eliminated.IMMIGRANT TUITION -- Children of illegal immigrants who graduate from Wisconsin high schools and have lived in the state for three years could qualify for in-state tuition at Wisconsin universities and technical colleges.STATE WORKERS -- All state workers will be forced to take 16 days off without pay over the next two years. About 1,400 could be laid off. A 2 percent pay raise is being rescinded, pending union approval for many workers, and most state agencies are being cut 6 percent.INSURANCE -- Insurance companies will be required to cover autism and mental health disorders.DOMESTIC PARTNERS -- Some of the same benefits enjoyed by married couples will be extended to gay and lesbian couples who live together and form domestic partnerships. Domestic partners of state employees will receive the same state retirement and health insurance benefits as spouses.CAR INSURANCE -- Wisconsin drivers will have to buy liability insurance starting in a year or face up to a $500 fine. Minimum car insurance requirements also will rise, which the insurance industry said will lead to higher rates.
Previous Stories:
- June 25, 2009: Legislative Committee Meets To Discuss Budget
- June 24, 2009: Legislature Still Looking For Budget Deal
- June 24, 2009: Farmers Oppose Proposed Ag Tax Change
- June 23, 2009: State Offices Might Close 4 Days Under Cuts
- June 23, 2009: Lawmakers Mull Driver's Cards For Illegal Immigrants
- June 22, 2009: Budget Work Expected To Resume
- June 22, 2009: Science Group Opposes Capital Gains Tax Hike
- June 20, 2009: State Budget Writers Weigh Tax, Immigration Policy
- June 18, 2009: State Budget In Limbo Until Tuesday
- June 18, 2009: Wisconsin Senate Passes Budget
Copyright 2009 by Channel 3000. The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.







