As anticipated, Gov. Jim Doyle’s budget has ignited a firestorm of controversy because of its recommendations for severe budget cuts and reallocations of state funds.

The budget plan exempts no one, cutting $378 million from state agencies, government, and the University of Wisconsin System.

Doyle’s budget is now in the hands of the Legislature, which found two bones of contention almost immediately after the plan’s presentation. Transportation funding and new tribal gaming compacts have become immediate points of dispute for many legislators.

Under state law, only the governor has the authority to enter into compact agreements with members of Native American tribal gaming. Doyle has announced several new compacts that would increase state revenues by $237 million over the next two years, but some legislators wonder if those treaties are misguided.

Tribal gaming casinos would pay increased fees to the state in exchange for an expansion of the games allowed at casinos and permission to operate at all hours.

Yesterday the Legislature called an extra session to pass a bill requiring legislative approval of tribal gaming compacts.

“I think that allowing legislative approval for the compacts is a healthy, democratic change that would make our decisions in this area more open and responsive to the people of the state,” said Assembly Speaker Rep. John Gard, R-Peshtigo.

“As a candidate for office, Gov. Doyle was a strong advocate of legislative participation in the compact process,” said Senate Majority Leader Mary Panzer, R-West Bend.

Legislators have complained that Doyle is expecting increased state revenue from the compacts, but the treaties have yet to be finalized. Tuesday the Oneida Nation announced it had signed a letter of intent to secure the terms of the gaming agreement with the state.

Republicans are also upset that the compacts Doyle is negotiating would be permanently binding.

“It is absolutely ludicrous that one person can bind the state over indefinitely,” said Rep. Carol Owens, R-Oshkosh.

As legislators hammer out which details of Doyle’s budget will be approved, many focus on how the budget will continue to fund transportation construction projects in the state.

“I recognize the importance of transportation to economic development and the quality of day to day life,” Doyle said in his speech.

Doyle’s budget would provide $244 million for the reconstruction of Milwaukee’s Marquette Interchange and $400,000 for a commuter rail between Kenosha and Milwaukee, while taking $500 million out of the state’s transportation fund over the next two years to tie up loose ends in shared revenue and school aid.

Legislators have voiced concern that the transportation projects in their areas were overshadowed by the enormity of the Marquette Interchange project.

“There are road projects in the Fox River valley and the Green Bay area that need those funds also,” Rep. Gregg Underheim, R-Oshkosh, said Tuesday night at Doyle’s budget presentation. “Milwaukee isn’t the only city that deserves to have its roads built.”

Gard said transportation would be a sticking point when the Republican-held Assembly gets its hands on the budget.

“I think [Doyle’s] assuming there are no other transportation projects going on around the state,” Gard said. “That’s a problem.”