Job cuts part of Doyle's budget
11:38 PM 2/18/03
Scott Milfred State government reporter

Gov. Jim Doyle proposed fixing the largest budget deficit in Wisconsin history Tuesday night by eliminating 2,900 government jobs, virtually freezing general spending and breaking the state's commitment to fund two-thirds of public school costs.

The Democratic governor touted his $49.4 billion, two-year spending plan for closing a projected $3.2 billion deficit without raising taxes.

But Republicans who control the Legislature worried that Doyle's plan relies too heavily on tenuous federal aid for health programs and extra payments from American Indian tribes for casino contracts that haven't yet been signed.

Doyle's package also would shift $500 million from the state's transportation fund to help pay for K-12 education and aid to local governments. Republican leaders argued that raiding the transportation fund would delay vital highway projects across Wisconsin and harm the economy.

Doyle, who inherited the state's money problems after being sworn in as governor last month, said cutting the 2,900 jobs was particularly difficult. He and his staff said they couldn't estimate how many layoffs would occur. Some of the jobs are already vacant, and some might be emptied through attrition.

Doyle also proposed charging workers more for their health insurance - something Republican legislative leaders applauded.

The governor proposed raising fees on car registrations, and hunting and fishing licenses. He proposed the consolidation of some state programs and agencies, and he wants to privatize the administration of the Wisconsin Lottery.

Doyle would save about $500 million by breaking the state's commitment to funding two-thirds of K-12 education. Under Doyle's plan, the state's commitment to funding public school costs would drop from 66.6 percent to about 62 percent by 2005.

Even so, public schools would get $100 million more than in the previous budget, Doyle noted.

"Education is my top priority because it points the way out of this crisis," he said. "Education is the key to our economic future."

Doyle, who was endorsed by the state's largest teachers union during his election campaign, proposed eliminating salary caps on teachers while keeping in place caps on most school district revenue.

Republicans warned that lifting caps on teacher salaries could lead to higher property taxes. But Doyle urged school districts and local governments to clamp down on spending.

"The money needs to go to classrooms and kids, not the bureaucracy," Doyle said.

Some city leaders were disappointed that Doyle's proposed budget would cut $70 million from shared revenue payments to local governments; Madison could lose more $3 million in annual aid. Doyle protected counties from the aid reduction.

Senate Majority Leader Mary Panzer, R-West Bend, said the governor handed the Legislature a blueprint it can work with. But she worried about higher property taxes and a shift in education dollars from suburban to rural districts.

Assembly Speaker John Gard, R-Peshtigo, worried that the governor's plan contained "smoke and mirrors."

But Senate Minority Leader Jon Erpenbach, D-Middleton, credited Doyle for going after health-care money "that's owed to us by the federal government."

Todd Berry, executive director of the Wisconsin Taxpayers Alliance, warned that Doyle's budget "is no different than the last couple of budgets. There's a lot of one-time money and hoping that the economy will come through."

Phil Brinkman contributed to this report.