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TUE., MAR 18, 2008 - 11:16 PM
Budget plans may dig bigger hole for future
By Jason Stein
608-252-6129

The competing solutions to repair the state 's broken budget can be summed up in four words, an independent report has found: Spend now, pay later.

When the Legislature passed the two-year budget in October, fiscal analysts projected a gap between estimated revenues and expenses in the next budget of $896 million.

The faltering economy has since lowered projections of tax money the state will receive, forcing policymakers to revisit the current budget.

But two of the proposed fixes add to the problems down the road, according to the report by the Legislature 's nonpartisan budget office.

Democratic Gov. Jim Doyle 's plan increases the potential shortfall in the next budget by $520 million, to $1.42 billion, the report found. A plan by the Republican-controlled Assembly raises the deficit by $753 million, to $1.65 billion.

The Democratic-led Senate has not yet introduced a budget repair bill.

"Once you have a big (shortfall), it 's a real devil to wrestle to the ground, and that 's what we 're finding, " said Sen. Rob Cowles, R-Green Bay. "It looks to me like it 's another really messy budget going forward. "

The potential shortfall occurs when the taxes and other money the state expects to take in won 't be enough to cover added commitments such as new spending and tax cuts that take effect in the next budget.

Lawmakers and Doyle bank on the fact that a growing economy will provide enough new tax money to cover the difference, but that can backfire when the economy hits troubles as it is doing now.

John Murray, a spokesman for Assembly Speaker Mike Huebsch, R-West Salem, defended the Assembly plan, which would spend most of the state 's $122 million in savings and delay a $125 million payment to K-12 schools until the next budget.

"Is it the ideal scenario? " Murray asked. "No. But given the alternatives of raising taxes, we need to look at all options. "

Doyle wants to raise about $125 million from a hospital tax and take up to $293 million from a state road fund to help balance the budget now.

Linda Barth, spokeswoman for the state Department of Administration, called Doyle 's budget repair plan "responsible " because it leaves $100 million in reserves and maintains priorities such as education and health care.


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