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Budget repair hurdles Senate
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by Kevin Bargnes
Wednesday, March 26, 2008
As supporters call it a “true compromise,” the Democratic-controlled Senate voted Tuesday to pass its budget plan in an effort to offset the state’s projected $652 million shortfall.
Included in the bill was a 0.7 percent tax on hospitals, which supporters say will bring in extra federal funding. Also, the bill will close a tax “loophole” bringing in $150 million.
In hopes of revitalizing the plan to build a commuter rail between Kenosha, Racine and Milwaukee, the bill would also raise the rental car tax in that area from $2 to $15. Lastly, the plan would put off some state funding set for June until July, originally included in the Assembly’s plan.
This comes weeks after the Republican-controlled Assembly and Democratic Gov. Jim Doyle announced their plans. The three groups must now come to a compromise, since the versions are considerably different.
Senators and representatives will likely meet together in a joint committee to discuss the budget repair process. Senate Majority Leader Russ Decker, D-Weston, and Assembly Speaker Mike Huebsch, R-West Salem, met this afternoon to discuss the details.
Democratic leaders billed the plan as a compromise.
“We kept some of the things from the governor’s budget and some of the things from the Assembly budget,” said Decker spokesperson Carrie Lynch.
Republicans in both houses were less optimistic about the plan.
“The Democrats’ plan kills jobs, kills business growth, and takes even more money away from Wisconsinites that are already cash-strapped,” said Sen. Scott Fitzgerald, R-Juneau, in a statement Tuesday. “By passing this bill, the Democrats are demanding that the eighth highest taxed people in the nation pay even more.”
Rep. Jeff Fitzgerald, R-Horicon, said the repair process “should not replay the full budget discussion but focus on the shortfall at hand.”
The original biennium budget, signed in October by Doyle, was 117 days late. The repair process should not take nearly as long, Lynch said, although time is a concern.
“I don’t think it’s very likely that it will be as long and hard as last summer, but this isn’t going to get any easier the longer it takes,” she said. “Sen. Decker would like to get it done as soon as possible.”
Calls to Gov. Doyle’s office were not returned as of press time.
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