The state stimulus package agreement by Governor Jim Doyle and the Democratic legislative leaders was unveiled today. The Democratic legislative leaders hope to fast track the plan and get it to the governor by Friday, February 20th.
The fast track process will begin with deliberations by the Joint Finance Committee on Tuesday, February 17th, which is also the same day that Governor Doyle will introduce his 2009-2011 budget bill.
The state stimulus package is expected to eliminate about $168 million of the current $593 million budget deficit for this fiscal year ending June 30th. Doyle said the rest of the fiscal year 2009 deficit will be addressed in his biennial budget package on Tuesday, February 17th. The overall estimated state budget deficit is now projected at more than $5.7 billion, according to the Governor's office.
Specific provisions in the state stimulus package include:
Cost cutting-- $125 million in cuts to state agencies, including $500,000 from the Legislature's budget
Hospital assessment funds--adoption of an assessment on hospital gross revenues, which is estimated to bring $900 million in federal revenues over a three year period
Transportation investment--authorizes first $300 million of federal economic stimulus funds for transportation projects, that includes a list of projects from the Department of Transportation that are deemed "shovel-ready"
Creation and Expansion of some tax credits programs--expansion of tax credit programs, such as angel and investor credits, to help foster more investment and create jobs; creates dairy cooperative investment credit and meat processing facility credit
Consolidation of some existing tax credit programs-consolidation of five existing tax credit programs (development zones, enterprise development zones, agricultural development zones, technology zones and airport development zones)
Combined Reporting--implements combined reporting of corporate income. Expects to increase revenues by $27.7 in fiscal year 2008-09 and by $187.3 million over the 2009-11 biennium.
Streamline sales tax "Main Street Equity Act"--implements streamline sales tax that is projected to bring in tax revenues $9.4 million in this fiscal year, and $61.3 million over the 2009-11 biennium
See list of "shovel-ready"projects here:
See the letter from Governor Doyle to the Democratic legislative leaders here:
http://www.wispolitics.com/1006/large/2.11.09___Budget_Adj_Bill_Letter.pdf
