Story originally printed in the La Crosse Tribune or online at www.lacrossetribune.com
Published - Monday, July 09, 2007
GOP budget relies on massive cuts to avoid tax increases
MADISON — Democrats want a $15 billion universal health care plan and tax increases for hospitals, oil companies and smokers.
Republicans don't want any tax increases and instead want to slash funding for state government, schools and the University of Wisconsin.
Somewhere in the middle is a state budget that will pass.
The Republican-controlled Assembly will debate the GOP plan today. Released 24 hours before debate was to start, the Republican plan rejects Democratic-backed tax increases and instead relies on deep cuts to education and state government operation in order to balance.
More a wish list than anything that likely will become law, the plan would cut the University of Wisconsin System by more than $100 million, reduce funding for public schools by $85 million and require state employees to pay more for health insurance.
Not in the plan are Democratic-supported plans to institute a universal health care system, impose new taxes on big oil companies and hospitals, and raise taxes on tobacco products.
The Assembly Republican proposal, just like its counterpart in the Senate that passed last month, will see many changes before it becomes law.
"There's good ideas on both sides," said Assembly Minority Leader Jim Kreuser, D-Kenosha. "We need compromise."
That won't come until a special bipartisan committee of lawmakers from both chambers meets after the Assembly passes its budget. Once it reaches a consensus, Democratic Gov. Jim Doyle will get a chance to change it once again with his broad veto power before it becomes law.
With the release of the Assembly Republican budget today, the two political parties seemed farther apart than ever.
"We're in for a really, really long summer," said Rep. Pedro Colon, D-Milwaukee.
Assistant Majority Leader Mark Gundrum, R-New Berlin, defended the Republican budget, saying it was realistic and would put more money in the pocket of taxpayers.
Gundrum said the variety of items in the budget reflect the priorities of all 52 Republicans in the Assembly.
"They want the opportunity to have an impact on the budget and public policy in the state of Wisconsin," he said. "This is a way they view as an opportunity to do that."
The Republican plan attempts to revive oft-rejected proposals from the past, such as requiring legislative approval of new casinos, while injecting new proposals such as making some sex offenders display bright green license plates.
Democratic opponents and those representing special interests that were hurt under the plan stumbled over themselves to shoot it down.
Not going ahead with a cigarette tax increase shows that Assembly Republicans aren't interested in lowering the number of young people who start smoking, helping others to quit or assisting with rising medical costs, said Maureen Busalacchi, executive director of Smoke Free Wisconsin.
Busalacchi said she still expects there to be a significant tobacco tax increase once the budget becomes law.
The Assembly Republican budget also proposes limiting tuition increases at the UW System to no more than 4 percent a year while at the same time cutting funding to the university by more than $100 million. Cuts would hit everything from general operations to financial aid.
University officials were poring over the proposal to tally all the cuts and determine their impacts, said UW spokesman Dave Giroux.
"It's obviously a version of the budget that would create significant challenges for us," he said.
While areas like the university were in line for major cuts, Republicans also proposed a variety of new tax cuts targeting retirement income, health savings accounts, college savings and workplace wellness programs.
Tighter lids on property taxes would be in place for the next three years under the plan.
While cutting taxes drew much of the attention, Republicans supported higher fees on car and boat registrations and driver's licenses.
In fact, Republicans proposed raising the registration fee for heavy-duty trucks weighing more than 8,000 pounds an additional 15 percent.
Until the budget is signed by Doyle, agencies will continue to operate with the level of funding they received in the budget year that ended June 30. The new budget will be in place until July 1, 2009.
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