Today was a busy day in the State Capitol.
Governor Doyle delivered his fourth budget address tonight to a joint session of the Wisconsin State Legislature. The Governor spoke for approximately 45 minutes. Governor Doyle laid out a very tough budget that cuts spending and raises some taxes in order to fix the state's nearly $6 billion structural deficit by cutting state agency budget requests by a more than $2 billion and takes advantage of the $2.1 billion in federal stimulus funds. Other budget specifics include $1.4 billion in new revenues and $245 million in other changes, including $200 million in savings from refinancing state debt.
According to the Wheeler Report, the budget will spend $14.2 billion in general purpose revenue (GPR) in FY09, $13.7 billion in FY10 and $14.2 billion in FY11. The Governor's office projects a $270 million balance at the close of the 2011 fiscal year (www.thewheelerreport.com).
The budget also includes some controversial policy items such as the implementation of a state-wide smoking ban and the creation of benefits for domestic partners.
To view a copy of the Governor's budget address, click here:
http://www.wispolitics.com/1006/090217_Budget_Address_text.pdf
Below are some of the major highlights of the Governor's budget:
TAXES
--Implementation of combined reporting for certain corporate entities in Wisconsin.
--A new tax bracket of 7.75% for joint returns over $300,000 income.
--Reduction of the capital gains exclusion to 40% from the current 60%.
--$.75 per pack increase in the cigarette and tobacco tax.
--An assessment on oil company profits.
--Implementation of the Main Street Equity Act.
--Create a dairy cooperative investment and a meat processing facility tax credits program.
--Implementation of a 1% across-the-board reduction for state agencies.
--Change state corrections policy "to better focus resources on the most serious offenders."
--Eliminate 17 positions at the Dept of Revenue because of automation of records and sales tax systems.
--Remove state staff from Wisconsin Welcome Centers.
--Consolidate Brownfield operations, minority business certification,
restaurant and food inspection activities and human resource
functions.
--Close 39 mobile Division of Motor Vehicle Stations.
--Close two state trooper stations (Tomah and Spooner)
--Close 25 DNR service centers.
--No pay raises for state employees.
--Slow the expansion of the Family Care program to additional
counties.
--Not move forward with the Badger Choice health initiative.
--Over the two year budget cycle, a combination of state and federal funds will increase state education funding by $426 million.
--Allow school districts to exceed revenue limits for safety, transportation costs and school nursing expenses.
--Hold the line on tuition at the UW by providing a home harmless provision for families making less than $60,000.
--Allowing a UW tuition increase about the same as experienced in the past budget.
--Creation of a freshwater school and public health school at
UW-Milwaukee.
--Increase financial aid by $38 million.
--Make a $25 million down payment on the future costs of the
Wisconsin Covenant. The first class is expected in 2011.
--The UW System will experience an overall $120 million cut from the current base.
--Require additional math and science credits for high school graduation.
--Spend $569 million for road projects, including $500 million in
federal funds.
--Provide for improved Amtrak service between Milwaukee and
Chicago and move toward passenger service between Madison and
Milwaukee.
--Creates regional transit authorities (RTA) in Southeast Wisconsin,
Fox Valley and Dane County.
--Implement a single license plate program.
--Create a domestic partner protection program.
--Implement a state-wide smoking ban.
--Create a child care quality rating system.
--Reform the Bureau of Milwaukee Child Welfare.
(parts taken from www.thewheelerreport.com)
