State aid to local governments and two-thirds state funding of public schools will not be protected from budget cuts, the new co-chair of the Legislature's budget-writing committee said Tuesday.
"It's a real challenge if you're taking those things off the table," said Rep. Dean Kaufert, R-Neenah, who was appointed to the post Tuesday by incoming Assembly Speaker John Gard, R-Peshtigo.
Kaufert will oversee the Joint Finance Committee with Sen. Alberta Darling, R-River Hills, who was appointed Monday by Senate Majority Leader-elect Mary Panzer, R-West Bend, who will be the new Senate majority leader. Kaufert was first elected to the Assembly in 1990 and has served on Joint Finance since 1997.
Kaufert said the burden of overcoming a state budget deficit projected to reach $1.6 billion in 2004 should be shared by all agencies and spending categories. State employees also should contribute toward the cost of their health insurance premiums, Kaufert said.
"We need to send a message that this is a partnership, and state workers are going to be asked to contribute toward their health care. In the real world, in the mills and the factories, a large percentage of income goes toward helping to pay health insurance coverage," Kaufert said.
State aid to local governments, also known as shared revenue, and two-thirds funding for schools, were largely spared from cuts in the 2001-03 state budget and budget repair bill approved last summer. Gov. Scott McCallum had proposed eliminating shared revenue by 2005 but vowed to maintain two-thirds funding of schools.
"This time, everything has got to be on the table," Kaufert said.
McCallum's plan to end shared revenue drew scorn from many local officials. But those officials may support a lesser cut of 5 percent, for example, given the state's budget problems, Kaufert said. Some savings from cuts in shared revenue could be used to encourage local governments to save money by consolidating, Kaufert said.
Other top-five spending categories that account for about three-quarters of expenditures of tax dollars include the state Department of Health and Family Services, Corrections and the University of Wisconsin System. While Republican control of the Senate and Assembly likely mean support for Kaufert, he may be at odds with Gov.-elect Jim Doyle.
Doyle, who is expected to present his budget plan in January or February, has said he wants to protect shared revenue for local governments and keep two-thirds state funding for schools. Doyle wasn't available to comment Tuesday.