As lawmakers, state agencies and interest groups sift through Gov. Jim Doyle's 1,700-page budget, many are discovering the finer points of his proposed $1.7 billion in revenue.
Just 14 hours after Doyle announced his budget Tuesday night, members of the Joint Finance Committee accepted the bill into discussion Wednesday and briefly expressed their interests in future cost estimates provided by the Legislative Fiscal Bureau.
While the Department of the Administration issued cost and revenue predictions with the budget, the nonpartisan Fiscal Bureau hopes to offer complete estimates in the next month. At the committee meeting, some lawmakers were concerned new sources of revenue could total as much as $1.9 billion.
According to Committee co-Chair Kitty Rhoades, R-Hudson, "the devil's in the details," because one budget provision would extend Wisconsin's sales tax to greeting cards sent by e-mail.
An administrative summary of the budget estimates expanding the sales tax to digital personal property would earn $6.1 million over two years.
Bob Delaporte, spokesperson for Assembly Speaker Mike Huebsch, R-West Salem, said Doyle's budget also includes what he termed an "iPod tax" that taxes Internet downloads.
"There's no one who will escape this budget," Delaporte said. "Last night was a shock of the large tax increases."
The largest tax increase announced by Doyle is the proposed $1.25 cigarette tax, which could generate more than $500 million over the two-year budget. Other tobacco tax increases are expected to generate nearly $40 million.
Doyle also announced $272 million in taxes over two years on oil companies in response to Exxon-Mobile's recent record-breaking profits. The governor has pledged legislation that would punish companies for passing extra costs onto consumers.
Another large chunk of new revenue would tax hospitals $400 million to complete a federal assessment program for matching funds from Washington. Doyle says the new revenue, estimated around $600 million, will refund hospitals and help reduce the cost of Medicaid.
Mary Kay Grasmic, vice president of communications for the Wisconsin Hospital Association, said the proposal looks good on paper, but added there is no guarantee all funds would be returned since future lawmakers could choose to transfer the funding elsewhere.
"It's sort of like the next year never comes," Grasmic said. "Taxing hospitals to pay hospitals [for Medicaid] — we don't think it's the right answer."
Grasmic said the new tobacco taxes should be enough to improve health care in Wisconsin and added that the hospital tax is not necessary.
To pay for a variety of transportation projects, Doyle proposed increasing the state's driver license fee by $10 and the vehicle registration fee by $20.
"The governor laid out a pretty aggressive transportation agenda," said Joint Finance Committee Chair Sen. Russ Decker, D-Weston, at Wednesday's meeting. "If you want something down for construction and transportation, you just can't wish it. You got to have something to pay for it and those type of things take some cash."
Rep. Steve Kestell, R-Elkhart Lake, said the committee needs to discuss fiscal needs before addressing investments.
"We'll first figure out how we pay the bills and make sure we can manage that," Kestell said. "After that has been accomplished, we then can look at other opportunities with whatever cash is left around."
After passing the Joint Finance Committee in the coming months, the state budget will go to the state Senate and Assembly for approval. If each house passes different versions, the budget will go to a joint committee for compromise.
Upon approval from the Legislature, the governor may veto entire parts of the budget bill.
