The state Legislature passed the state stimulus package Wednesday designed to help repair the $600 million budget shortfall Wisconsin currently faces under its current budget set to expire June 30.
The package was introduced last week by a coalition of Democratic lawmakers as well as Gov. Jim Doyle and moved through the Legislature quickly, voted on by the Assembly and Senate just one day after the Joint Committee on Finance approved it.
The bill passed the Senate by a margin of 18-15 and the Assembly by a margin of 51-48.
In addition to budget cuts, the package also includes a variety of tax increases, including the “iPod tax” on downloaded songs and cell phone ring tones. The increases will be carried over into the next budget cycle, from June 2009 to mid-2010.
Despite tax increases, the package still contains benefits that will be felt by citizens throughout the state, according to Senate Majority Leader Russ Decker, D-Weston.
“The most important thing about the bill is that it’s going to create thousands of jobs,” Decker spokesperson Carrie Lynch said. “We included tax credits for new businesses as well.”
In addition, Lynch said the bill will provide important worker training for future jobs and will close various corporate loopholes to make sure Wisconsin companies pay their fair share in state taxes each year.
Senate President Fred Risser, D-Madison, agreed with Lynch, acknowledging while the package has its flaws, it is an important step for the state to take.
“Overall, I would say that the bill is not perfect by any means, but it has more good than bad to it,” Risser said. “It’s moving in the right direction.”
According to Risser, one of the major highlights of the plan was the hospital assessment tax designed to help increase revenue for the state.
In spite of the positive attitudes of Democratic lawmakers, Republican legislators expressed concern regarding the package.
“Even though it has the label of the stimulus package, it’s really just a tax increase,” said Kimberly Lidel, spokesperson for Senate Minority Leader Scott Fitzgerald, R-Juneau.
Lidel added the tax increases will only make life more difficult for families and businesses throughout Wisconsin to live their day-to-day lives and will not stimulate the economy.
Assembly Republicans also expressed concern that some of the most vulnerable populations of the state, such as the elderly and disabled, will be harmed by the package.
According to Rep. Phil Montgomery, R-Green Bay, the proposal dehumanizes these populations by treating them as scapegoats and special interest groups.
“You want somebody else to pay for your mistakes,” Montgomery said while addressing the Assembly floor during bill deliberations Wednesday night.
Although the bill is designed to fix the state’s current budget shortfall, it does nothing to address the $5.9 billion shortfall the state is expected face over the next two years.
The package will go to Doyle to be signed into law.