Gov. Jim Doyle plans to mine hundreds of millions of dollars in cuts out of the state, according to the goals outlined in his budget address Tuesday. And, as expected, Doyle’s critics drew attention to the areas cuts seemed to leave behind, especially education.

After months of anticipation, state agencies, legislators, students and citizens finally got to hear Doyle’s plan to escape the $3.2 billion budget deficit for the next two-year budget cycle. To top Doyle’s task, he faced a $454 million gap for the current fiscal year, which ends in June.

“For the first time in 22 years, Wisconsin will live within its means,” Doyle said.

Doyle had assumed an escape artist’s task of developing a budget plan while keeping his campaign promise of no increased taxes. Without resorting to tax increases like many states, Doyle was forced to include significant cuts in all areas of state spending.

“This budget eliminates 2,900 state jobs. It reduces funding for the university system by $250 million,” Doyle said.

Doyle said the state had to pick its priorities before deciding on cuts. His priorities, he said, would be no tax increases, fair distribution of cuts, protection of key services including health care and education, streamlining state government and “to do it once and do it right.”

But Doyle’s cuts do not hit the state softly, something Republican legislators did not fail to notice.

The plan allows just $100 million for state public schools, which Rep. Gregg Underheim, R-Oshkosh, said was almost $500 million less than a budget the schools had worked on in the past. But Doyle insisted he was not turning his back on the schools.

“Education is my top priority because it points the way out of the crisis,” Doyle said. “Education is the key to our economic future.”

Doyle’s plan repeals the Qualified Economic Offer, which puts a limit on teacher’s salaries, saying the plan was making it too difficult to attract the best teachers.

Senate Majority Leader Mary Panzer, R-West Bend, questioned the governor’s proposal to cut the QEO.

“Property taxpayers are going to have to pick up the difference,” Panzer said.

Despite increased funding, the governor claimed schools must fund a larger percentage themselves.

“State government can no longer afford to finance two-thirds of funding for public schools,” Doyle said. “So I call on school districts to join state government in taking a close look at every penny — preserving what’s most important, but also clamping down on what’s not.”

Since his inauguration Doyle has said no state agency, including the UW System, would be exempt from cuts, but he finally made the breadth of those cuts clear. The system will receive $250 million less in state funds, which will mean higher tuition for students.

“Everyone must share in the sacrifice needed to clean up the budget mess — and the university system can’t be an exception,” Doyle said.

Panzer agreed the universities would have to “do their share” in state budget cuts.

To counter the tuition increase, the governor proposed to increase financial aid 56 percent, calling it the biggest increase in Wisconsin history.

Rep. Spencer Black, D-Madison, disapproved of the steep tuition hike.

“The tuition increase impacts students more than necessary; it will amount to about a 16 percent increase,” Black said. “However, I must commend the governor for the substantial increase in financial aid.”

Doyle promised not to take health care away from the people he said desperately need it, saying he will preserve programs such as Senior Care, Badger Care, and Medical Assistance and reallocate $200 million from the Patients Compensation fund. He also demanded $500 million in Medicaid money he said the federal government owes Wisconsin.

“Washington is taking its usual position of saying they won’t pay,” Doyle said. “Democrats and Republicans are in this together, and we all need to make sure Wisconsin’s taxpayers get their fair share under the law.”

The plan did not totally dissatisfy even Doyle’s political rivals. Panzer, for one, felt the governor’s budget plan was a good basis for an economically sound state.

“The governor gave a blueprint from which we need to work from,” Panzer said. “We need to regrow Wisconsin’s economy and lift the tax burden in the state.”

The budget reduces the maximum blood alcohol level for driving from .10 to .08.

Doyle also denounced earlier administrations for failing to put away “rainy day” funds during the economic boom of the 1990s, which he said left the state in its current dire straits.