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Doyle Signs $62B Budget Legislation

Governor Uses Partial Veto On Film Tax Breaks

Updated: 1:06 pm CDT June 30, 2009

Gov. Jim Doyle signed the state's two-year budget on Monday, but not before using his partial veto power to block various measures.

READ: See List Of Doyle's Budget Vetoes

State lawmakers gave final approval to the $62 billion spending plan early Friday evening. The budget closes a record $6.6 billion shortfall that was brought on because state agencies' spending requests outpace projected revenue.

The budget debate crept close to the July 1 deadline, but the much-discussed cuts and tax increases are now final. The budget is on time for the first time in many years, but that doesn't mean the decisions or the consequences will be easy for many.

As part of the budget, there will be at least 1,000 state layoffs, $3 billion in cuts and about $2 billion in tax increases. Then, there are the things still to be seen, like just how this budget will impact local governments and schools.

The governor and state lawmakers faced hard choices to fix the deficit.

"The challenge before us was very clear, but it also presented an opportunity for us to show who we are, and to build an economy on a more solid footing," said Doyle.

Those the budget affects are now sorting out the end result. Madison Mayor Dave Cieslewicz said on Monday that his city will shoulder its share of burdens from the budget.

"There's a lot of pain to go around and the city of Madison will certainly shoulder its fair share of the pain, but no more than that," said Cieslewicz.

Madison Metropolitan School District Superintendent Dan Nerad said now that the budget is signed, everyone can begin to make preparations for what funds are available.

"The key thing for us now is to put the final number together so we can absolutely project what the impact will be on the district and potential impact on taxpayers," said Nerad.

The budget bill allows a regional transit authority in Dane County, but removes the requirement of a referendum and won't allow 25 percent of RTA revenue to be spent on roads.

"While both the (Dane) County executive and I would have preferred that, I think we can manage the situation without it," said Cieslewicz.

Doyle Uses Partial Veto Power

Doyle vetoed 81 items in the budget. The provisions amount to about $10 million and include changes to regional transit authorities in the state, tax credits and state auto insurance levels, WISC-TV reported.

The governor agreed with a legislative provision to limit school aid cuts on large districts like Madison to 10 percent, rather than the 13 percent they were facing, but vetoed the provision choosing which schools would help make up the difference.

"It's good to have this final. We can reorder our lives around this," said Nerad. "We know what the likely impact is going to be, but it's more important for our families and kids and teachers and all our staff to work off hard numbers now."

Another one of the provisions that Doyle used his veto power on was to lower the amount of money for film tax breaks. The governor had proposed scrapping the 1-year-old program and replacing it with a $500,000 annual grant program.

The Legislature had created a $1.5 million program instead.

However, Doyle lowered the amount available to $500,000 a year, identical to what he had proposed in February. The current program has no limits.

Film supporters have said that what Doyle wants will dry up the fledgling film industry in the state and prevent large Hollywood productions from coming to Wisconsin.

Doyle said he thinks the $1.5 million for film tax breaks is excessive.

Other elements slashed from the budget were changes in farmland taxes and some of the many earmarks in the bill including a park in Beloit.

Now, that the budget process is complete, the consequences of lawmakers' priorities will be what shape the future.

"I have always believed that the people of Wisconsin elected me to lead through good times and bad, to make responsible choices and at the end of the day to strengthen this state," said Doyle. "That's what I've tried to do, especially in this time of economic uncertainty."

Among the many provisions left in the budget are requirements for insurance coverage of treatment for children with autism, a primary seat belt enforcement law, requirements for auto insurance coverage and an increase in garbage tipping fees.

Some Republicans are decrying the budget as bad news for Wisconsin families, and saying the tax increases will affect the state for years to come.

The governor's office said it was the first time a budget has been completed on time since 1977.

Doyle signed the measure at the executive residence late Monday morning.

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