With the state facing a nearly $6 billion shortfall, Gov. Jim Doyle is expected to present a budget with deep cuts when he delivers his proposal to lawmakers tonight.
A variety of tax increases slated to be included in the budget have been circulating the state, among them a possible tax increase on cigarettes.
In addition, tax increases included in the state stimulus package, if passed, would likely be carried over into the next budget cycle, including an increase in online downloads for things like cell phone ringtones.
The legislative Joint Committee on Finance will meet today to introduce and take executive action on the state stimulus proposal.
While Doyle spokesperson Carla Vigue declined to comment directly on measures that may be included in the governor’s budget proposal, state lawmakers are bracing for the worst.
“I expect the budget to include a lot of bad news,” said Assembly Majority Leader Rep. Tom Nelson, D-Kaukauna. “I expect a lot of programs and projects will be cut, but I’m hopeful we can prioritize investments in education and critical services like police and fire.”
Nelson added given the state’s economic crises, he expects the Legislature to research the proposal and seek public input before the Assembly submits its own budget to the Senate.
Critics of possible tax increases argue that increases will not help the state’s current economic climate.
“I don’t understand raising taxes in these times,” said Rep. Phil Montgomery, R-Green Bay, a member of the Joint Committee on Finance. “I think if you just ask the families of Wisconsin that are struggling if this is how they would go about balancing their budget, I don’t think this is how they would do it.”
Montgomery said Doyle often has unrealistic expectations about how much money the state will bring in, but he never makes any cuts to government programs when the revenues amounts are not reached.
Senate Minority Leader Scott Fitzgerald, R-Juneau, agrees with Montgomery, according to spokesperson Kimberly Liedl.
“This is not the right way to be balancing our budget and digging ourselves out of a recession,” Liedl said.
According to Wisconsin Republican Party spokesperson Kristen Kukowski, measures like tax incentives for businesses and transparency in health care should be included in the budget instead of further tax increases.
After the governor proposes his budget, it will have to go to the Joint Committee on Finance who will make recommendations and hold public hearings before passing the bill on to the entire Legislature, who will then vote on the proposal. The budget will be in effect for two years, from mid 2009 until mid 2011.
The state is slated to receive around $3.5 billion from the federal stimulus package President Barack Obama is expected to sign into law today. Around $2 billion of the funding for Medicare and education will help lower the projected deficit the state faces, Doyle said in a press conference last week.