Panel trims just $9 million more from state budget
11:22 PM 2/13/03
Phil Brinkman State government reporter

After complaining that Democratic Gov. Jim Doyle's emergency budget bill doesn't go far enough, Republicans on the Legislature's budget committee managed to squeeze out just $9 million more before sending the measure on to the Legislature.

"The governor's right about one thing: It's very difficult to implement a lot of change that adds up to a lot of dollars in a four-month period," committee co-chairman Rep. Dean Kaufert, R-Neenah, conceded later, referring to the remainder of the fiscal year.

Officials project a budget shortfall of $454 million by June 30 unless the Legislature makes dramatic cuts in spending. Doyle's bill reduces that by $161.5 million, mostly through 5 percent cuts to most state agencies, but puts off resolving the remaining $292 million deficit until the next two-year budget.

Thursday, the Legislature's Joint Finance Committee voted to increase the across-the-board cuts to 6 percent, for a savings of about $8 million.

But they rescinded Doyle's proposal to transfer $22 million to the general fund from the state transportation fund, financed by fuel taxes and vehicle registration fees and intended for road projects.

Combined with other transfers of special-purpose funds back to the general account, the moves would reduce the carryover deficit to about $283 million, said Bob Lang, executive director of the nonpartisan Legislative Fiscal Bureau.

Republicans, who control the committee 12-4, shot down Democratic proposals to shift unused federal grant money from the state Department of Agriculture, Trade and Consumer Protection, and to charge businesses a fee for a state program aimed at helping them increase exports.

But the deepest disagreements came over shifting gas tax money to the general fund. The move would have emptied the transportation fund for this year, just before several major road building projects begin, including reconstruction of the Marquette interchange in Milwaukee.

Republicans called the proposal "penny wise and pound foolish," saying good roads lead to economic growth, which will help the state's finances in the long run.

"You cannot grow your way out (of a deficit) unless you have infrastructure," said Rep. Kitty Rhoades, R-Hudson.

But Sen. Mark Meyer, D-La Crosse, noted the fund had been raided in the last two budgets proposed by former GOP Gov. Scott McCallum and said transferring the money would reduce the general fund deficit to $261 million.

"I think we're in tough times (and) everybody has to leave the table with a frown on their face knowing they've taken a hit," Meyer said.

The full Legislature could vote on the bill as early as next week.