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Feb. 19, 2003
Special
Budget Edition
Last
night, in one of the most anticipated and important budget
addresses in recent years, Gov. Doyle unveiled his 2003-05
Biennial Budget to fix the projected $3 billion-plus budget
deficit. From a business perspective, he delivered on promises
some considered to too good to be true – bringing fiscal
responsibility to state government without raising taxes. In that
regard, the Governor assured the people of Wisconsin that there
will be no increases in income, sales or corporate taxes, as well
as no changes in exemptions or deductions.
The
balancing act was generally accomplished though use of one-time
money, primarily front loaded in the first year, and substantial
agency cuts. One of the more controversial proposals for one-time
money includes a $500 million transfer from the Transportation
Fund to the general fund, which is characterized by the Governor
as assistance for schools and shared revenue. Some of the
highlights are noted below. The Hamilton Consulting Group will
provide more details with our Feb. 21 edition of Tidbits.
Major
Themes
In his budget
speech to the Legislature, Gov. Doyle outlined his five
priorities in crafting his biennial budget bill:
“Other
states – 24 so far – are proposing to raise taxes. We absolutely,
positively, will not raise ours.”
- Distribute
Budget Cuts Fairly
“We
have to choose between unfairly burdening a few or all
sharing a measure of pain – and my budget says we’re all in
this together.”
- Protect
Education, Health Care, Key Local Services and the Environment
“Education
is my top priority because it points the way out of the crisis.
Education is the key to our economic future.”
“Our
economy, our communities, and our health depend on the quality of
our environment.”
- Reduce
Spending and Make Government More Efficient
“The
budget includes sweeping measures to consolidate state government
and make it more efficient.”
- Do
It Once, and Do It Right
“I
have presented you tonight a budget that makes difficult choices.
But the cuts we have proposed are fair. The hardship is evenly
shared. And it will not be in vain: We are going to do this once
and do it right.”
State Commitment to Education Funding Reduced
The Governor proposes to drop the state’s commitment to fund
two-thirds of school costs. While that results in $500 million
less to schools (64% in FY 2004; 62% in FY 2005), the budget would
still increase school funding by $100 million. The qualified
economic offer (QEO), the elimination of which was a top priority
of the teachers’ union, would be abolished. He proposes,
however, to maintain the school spending caps, but allow poorer
schools to exceed limits without seeking voter approval through
referendum, and eliminate minimum payments to the wealthiest
school districts. The University of Wisconsin System’s budget
would also be cut $250 million over the biennium. There would,
however, be authorization to raise tuition to a level that would
increase UW revenues by $150 million.
Shrinking
the Size of State Government
Gov. Doyle’s budget would cut state agency operations spending
from five to 63 percent, with an overall average of ten percent.
He proposes to reduce the state workforce by a net 2,000
positions, including the following:
- UW
System – 650
(Does not include 567 new positions through gifts, grants and
federal money.)
- Health
and Family Services – 538
- Transportation
– 301
- Workforce
Development –219
- Corrections
– 200
- Revenue
– 151
- Administration
– 146
- Natural
Resources – 142
- Legislature
– 60
- Commerce
– 55
Agency Elimination & Consolidation of Functions
The following eight agencies, boards and commissions would be
eliminated, with their functions generally transferred to other
agencies:
- Electronic
Government
- Employment
Relations
- Personnel
Commission
- Higher
Educational Aids Board
- Tobacco
Control Board
- Adolescent
Pregnancy Prevention and Pregnancy Services Board
- Office
of the Commissioner of Railroads
- TEACH
Board
Some key shifts/consolidations in agency functions include:
- Consolidate
brownfields grants at DNR
- Coordinate
allocation of agency legal staff through DOA
- Transfer
housing functions form DOA to Commerce
- Consolidate
consumer protection functions at DOJ
- Consolidate
milk inspection responsibilities at DARCP
Political News
Job
cuts part of Doyle's budget: Wisconsin State Journal, Feb.
19, 2003. Eliminating 2,900 government jobs, virtually freezing
general spending and breaking the state's commitment to fund
two-thirds of public school costs.
If
state gives a little, it can take more from casinos, tribes say:
Milwaukee Journal Sentinel, Feb. 19, 2003. Tribal
representatives said the higher payments are possible, but for a
price.
Licenses
to hunt, fish would rise: Milwaukee Journal Sentinel,
Feb. 19, 2003. But state park entry would stay the same.
200
jobs would be cut, two new facilities would stay dormant: Milwaukee
Journal Sentinel, Feb. 19, 2003. This is the smallest biennial
increase in over a decade," said Doyle policy adviser.
'Jim
Millionaire': Daily Reporter, Feb. 19, 2003.
Wisconsin's budget plight has also been based - in part - on the
false pretense that our state has lots of money.
Appeals
judge, circuit judge advance to Supreme Court general election
Court: Eau Claire Leader-Telegram, Feb. 19, 2003.
Roggensack and Ed Brunner were the top two vote-getters.
Valley
residents’ reaction to Doyle mixed: Appleton
Post-Crescent, Feb. 19, 2003. Plans to reduce state support
raise concerns.
'Two-thirds'
funding plan would be ended: Milwaukee Journal Sentinel,
Feb. 19, 2003 Doyle calls QEO ineffective, unfair and expendable.
UW
System faces tough cuts, jump in tuition: Milwaukee Journal
Sentinel, Feb. 19, 2003. Could change significantly depending
on the decisions of state legislators.
Budget
Documents
The
Governor’s 2003-05 budget documents can be found at the
Department of Administration’s web site.
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