UW-Madison will be facing a $50 million cut in state funding under Gov. McCallum’s plan to fix the state’s large budget deficit. The plan, being announced Tuesday, is likely to protect both in and out-of-state tuition, but will not include the full 10 percent financial aid increase the governor’s office announced last week, sources say.
Details of the plan to mend Wisconsin’s $1.1 billion budget deficit are being announced in a special legislative session today. McCallum has not revealed any of the budget plan’s fine points, but has promised targeted cuts instead of an across-the-board freeze. He said the proposal will not include any tax increases.
UW-System Vice Chair of Administration John Torphy said UW is anticipating the cuts, but will not be able to calculate what areas of the university will be hardest hit until later this week.
Although the governor said he values “protecting” UW-System tuition from drastic increases, an aide said a complete tuition freeze is unlikely.
McCallum’s Press Secretary Debbie Monterrey-Millett said some health and social service programs will be spared. The governor’s priorities include Wisconsin Works, BadgerCare, Family Care, Senior Care, medical assistance and several community programs.
Some say sparing these programs will make cuts to the UW-System and local schools more likely.
K-12 education will likely suffer a $20 million budget cut. Local government aids and state aids to local school are also to be docked.
The state’s deficit, which McCallum said necessitated reworking the 2001-2003 budget, is a result of slowing tax collections and a slumping national economy, made worse by the Sept. 11 attacks.
Both republicans and democrats have offered solutions for solving the deficit, but both groups are waiting for the governor’s announcement.
Republican lawmakers have proposed a “freeze it and fit it” plan to repair the deficit. The plan proposes to repair the gap with a one-year spending freeze on state and local governments, including schools and a state hiring freeze. The reductions would cut the deficit in half.
Democrats agree cutting state spending is necessary but want cuts to exclude educational services from cuts. State Rep. Spencer Black, D-Madison, said UW tuition could face a 15 percent increase under Republican budget plans.
“I think students with talent should not be denied opportunity,” Black said. “Increasing tuition threatens students, especially from working families.”
McCallum has been working on the plan, but waited for the Legislative Fiscal Bureau to announce exact deficit numbers last week before introducing it. Tuesday is also the first day the regular legislative session is scheduled to begin, which forces the legislature to give priority to the new budget proposal in session.
