After a week of closed-door negotiations at the governor's residence, state legislators are back to wrangling over the budget in the state Capitol. They are closer to a compromise but still have work ahead of them.

The state is now more than three months past its July 1 deadline for a final budget, and last week, Democratic Gov. Jim Doyle invited legislative leaders to convene at his residence as a means of facilitating progress.

"It just shows the sense of urgency that the governor feels that we need to get this budget done right away for everyone in the state," said Rachel Allen, spokesperson for Gov. Doyle.

Throughout the protracted negotiation process this year, Assembly Republicans have objected to Senate Democrats' push for spending increases. Last week, however, both sides made compromises, narrowing the monetary gap the unified budget must bridge.

Democrats dropped Healthy Wisconsin, the plan that would have provided universal health care access to Wisconsin residents. They also surrendered fees and assessments totaling billions of dollars and offered to freeze University of Wisconsin System tuition as long as schools remained fully funded.

Josh Wescott, spokesperson for Senate Majority Leader Judy Robson, D-Beloit, said these concessions represent decent progress.

"We've pared $18 billion in differences down to $1 billion in about a week," Wescott said. "There's no reason we can't get this done."

Last week, Assembly Speaker Mike Huebsch, R-West Salem, also made concessions, offering to allow a $1.25 increase in the cigarette tax, which would add around $150 million in revenue and which Republicans have previously opposed.

Democrats, however, rejected the proposal. John Murray, spokesperson for Huebsch, said it was, "a serious offer by [Huebsch] being rejected as not enough spending."

Meanwhile, Allen said agencies statewide are hurting from the uncertainty. Thousands of UW System students have yet to receive notification of financial aid, leaving them to find other means of paying tuition in the meantime. Seniorcare, which pays for prescription drugs for seniors, faces a shortfall of $9 million and pharmacies may soon have to start charging again.

Allen also said it may already be too late for the state's public schools. The Department of Public Instruction is required by law to calculate aid to individual schools by Oct. 15. Without numbers from the Legislature, statewide property tax hikes may be necessary.

The Assembly recently passed a resolution to fund schools at the level requested by both the governor and Senate, but while the numbers all match, Senate Democrats rejected the attempted compromise.

According to Wescott, Senate Democrats feel it is best to pass the entire budget rather than fixing problems one at a time.

Allen agreed, adding "the governor's made it clear that he doesn't want to start engaging in this piecemeal budgeting. … That's not really an option right now."

Neither side is able to estimate when the budget will be done yet, but both agree it will depend on the other party.

"If [the Republicans] want to get it done, we can get this done pretty quickly," Wescott said.

Murray said the reverse is equally true.

"[Huebsch] feels he's done all he can do, and now the ball's in the Democrats' court," Murray said.

According to Allen, Wisconsin is the only state still operating without a budget. Many states are required to shut down in the absence of a budget, and Doyle has said he may look into pushing a similar law for Wisconsin in the future.

"No one thought in their wildest dreams that [the budget process] would go on for months," Allen said.