After Wisconsin residents identified taxes and the state
budget as the biggest issues facing the state, controversy expanded Monday
around Gov. Jim Doyle’s steps to bail Wisconsin out of a $527 million budget
shortfall.

According to a survey released by the St. Norbert College
Survey Center, 33 percent of Wisconsin residents see taxes and the state budget
as the state’s biggest issue, and 21 percent see the economy and jobs as the
most severe problem.

Rep. Stephen Nass, R-Whitewater, sent a letter Monday to
Assembly Speaker Mike Huebsch, R-West Salem, imploring Huebsch not to yield to
Senate Democrats’ desires to raise taxes to cover the budget shortfall.

“Raising taxes is not an option,” Huebsch spokesperson
John Murray said. “We will trim state spending, but we will not look at
segregated funds or raising taxes.”

Murray stressed this is not a partisan issue, however, as
Nass had presented it, because any budget agreement will have to gain
bipartisan support.

Doyle called a special legislative session to reach a
compromise on the budget before the end of the fiscal year in three months.

Since February, the State Budget Office has succeeded in
reducing the budget deficit, but the state of Wisconsin remains hundreds of
millions of dollars in debt.

“The administration has done what it can, and now
Legislature must take some action,” State Budget Director David
Schmiedicke said.

According to Schmiedicke, Doyle is looking at additional
borrowing and transferring transportation funds to a general fund.

The state has already taken steps toward closing the budget
gap through tax fairness and closing corporate tax loopholes, according to
Carrie Lynch, spokesperson for Senate Majority Leader Russ Decker,
D-Weston.?

Prior to this year, several of Wisconsin’s corporations were
able to use subsidiaries in Nevada to avoid paying Wisconsin taxes.

Wisconsin is required by its constitution to balance its
budget annually. In the event the state government cannot neutralize the
deficit within the subsequent year, it is likely that taxes will rise.

“We are having daily talks, ongoing negotiations with
leading legislators,” said Doyle press secretary Jessica Erickson.
“We’re trying to get this resolved as quickly as possible.”

However, Nass criticized a perceived lack of transparency
during the governor’s negotiation process.

“As you continue to negotiate behind closed doors with
the governor and Sen. Russ Decker, the people of Wisconsin continue to suffer
from a declining national economy and $763 million in new state taxes and fees
enacted in October 2007,” Nass said in his letter to Huebsch.

Decker and Huebsch’s offices agreed Nass’ accusation was
inaccurate.

“We’re still just looking at all the possibilities of
where this can go; (we’re) in constant contact with the Assembly,” Lynch
said. “No one is trying to hide anything.”

Schmiedicke, Erickson and Lynch said the slowing national
economy was the largest factor culpable for the state economy’s shortcomings.?