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UW System budget cut $250 million, remaining state budget still up in the air

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Related stories:

• Insult to injury: Another $50M added to shortfall (May 14, 2009)
• UW budget cut compromise denied (April 24, 2002)
• System fears cuts still deep (October 12, 2007)
• Admissions freeze lifted (March 24, 2002)
• Regents discuss budget misconceptions, suggest cut solutions (April 5, 2002)

Also by Matt Modell:

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Republican state legislators and Governor Doyle again find themselves in sharp disagreement with each other with regards to the state budget.

Last week, the Republican controlled Joint-Finance Committee passed a budget that Gov. Doyle threatened to veto if changes are not made before the budget reaches his desk. The state Senate passed the budget early this morning 17-16, with only one amendment that was widely criticized by Democratic state senators.

Legislators have agreed to the governor’s proposed $250 million cut to the UW System budget. UW-Madison Vice-Chancellor Darrell Bazzell said his feeling on the process is “interestingly enough, one of relief” that the cut has been determined and was not larger than expected.

The $250 million system cut will result in a $38 million decrease in the UW-Madison budget. According to Bazzell, this cut will affect the services provided to students, including 200-300 fewer course offerings.

Bazzell said he has concerns on how these cuts will affect tuition.

“In-state tuition is still below the mean for our peer group [of schools]. I have a concern what the effect will be to the tuition levels of our out-of-state and graduate students.”

Both the governor and Joint Finance Committee Chairwoman Alberta Darling (R-River Hills) believe no further changes will be made to the System budget.

“We feel the UW has swallowed enough in this painful process,” said Darling spokesman Tom Petri.

The remaining budget is still contentious, as Gov. Doyle has expressed concern with the budget passed by the Joint Finance Committee, even threatening to take the unprecedented move of vetoing the entire state budget, said Dan Leistikow, press secretary to Doyle.

“The governor is obviously open to talking. The governor has the most powerful veto powers of any governor in the country and whether it is a line-item or a full-veto, the governor is prepared to use his veto powers if he feels it is necessary,” Leistikow added.

The main issue of contention remaining appears to be property taxes and how K-12 education will be funded.

The governor made a campaign promise to refrain from raising taxes and his budget proposal does not include direct tax hikes. However, Republican legislators claim that while his budget does not directly raise taxes it not only allows, but practically requires local governments to raise property taxes to pay for K-12 education.

Leistikow countered the Republican claim by saying, “An increase in property taxes is a decision to be made by local governments. The governor’s budget nearly restored all the shared revenue cuts.”

The Joint Finance Committee budget and the budget passed by the Senate today places a freeze on property taxes, only allowing for increases due to population growth.

Gov. Doyle says this freeze would result in a $400 million cut to K-12 education.

But Republican legislators do not appear to be backing down from the governor’s demands.

Accoding to Petri, “[I] think he is playing chicken with the full veto. We went along with many of his proposals including the UW budget. The only reason he would veto the whole thing is if he was afraid to veto the freeze. We’re dead set on what we did. He will not intimidate the Republican legislature.”

The Assembly is expected to take up the budget later today and likely pass the budget by the end of the week, upon which the legislation will make its way to the governor’s desk.

Editors note: The Assembly has passed the budget and it is now at the Governor’s desk.