Governor Doyle Protects School Aid Payments, Builds Reserve Fund and Cuts Spending in Budget Repair
MADISON – Governor Jim Doyle today issued vetoes and signed a budget repair bill that keeps the state’s commitment to pay vital school aid payments, increases cuts to state spending and builds a reserve of more than $100 million over the biennium. Governor Doyle faulted Assembly Republicans for refusing to secure Wisconsin’s fair share of federal Medicaid revenues, which would have helped the Legislature avoid accounting tricks corrected through his vetoes.
“Despite overwhelming support of the state’s major business and hospital associations, Assembly Republicans made the shortsighted decision to stop a hospital assessment that would have brought $450 million in federal money to the state and closed $125 million of the deficit,” Governor Doyle said. “That left the Legislature pushing off vital school aid payments that would risk significant cuts to education in the next budget and had them rely on a tobacco refinancing scheme that went too far.”
In making his vetoes, Governor Doyle followed four principles. First, a budget deficit should not be solved by pushing off bills such as the school aid payments. Second, dramatic spending increases can not be part of the answer. Third, the budget repair should make the most of market conditions. And finally, the state must build a reserve to protect against economic downturns.
The budget repair bill proposed lapses of just $69 million to address a budget gap of $652 million. In the 2007-2009 biennial budget, transportation spending was up approximately $350 million over the previous budget, and the Legislature’s budget repair bill would have increased that spending by an additional $180 million, for a total increase of $530 million, or 22 percent, over the last biennium.
Governor Doyle’s vetoes allow a $24.8 million increase to address higher county highway maintenance costs brought on by one of the worst winters in Wisconsin history. And Governor Doyle retains an $18.6 million increase to address caseload increases in the state’s child care assistance program. Overall, however, state spending is reduced by $270 million with Governor Doyle’s vetoes.
Refinancing the tobacco settlement fund must take full advantage of market conditions, and Governor Doyle’s vetoes ensure that the bond refinancing will be structured to deliver the greatest savings to the state and avoid relying too heavily on up-front savings.
Finally, Governor Doyle used his veto to improve the state’s fiscal stability by building a general reserve fund of approximately $100 million. The Legislature’s proposed level of $25 million was not prudent even under good economic conditions.
Governor Doyle’s full veto message is available at: http://www.wisgov.state.wi.us//docview.asp?docid=13749.
“Despite overwhelming support of the state’s major business and hospital associations, Assembly Republicans made the shortsighted decision to stop a hospital assessment that would have brought $450 million in federal money to the state and closed $125 million of the deficit,” Governor Doyle said. “That left the Legislature pushing off vital school aid payments that would risk significant cuts to education in the next budget and had them rely on a tobacco refinancing scheme that went too far.”
In making his vetoes, Governor Doyle followed four principles. First, a budget deficit should not be solved by pushing off bills such as the school aid payments. Second, dramatic spending increases can not be part of the answer. Third, the budget repair should make the most of market conditions. And finally, the state must build a reserve to protect against economic downturns.
The budget repair bill proposed lapses of just $69 million to address a budget gap of $652 million. In the 2007-2009 biennial budget, transportation spending was up approximately $350 million over the previous budget, and the Legislature’s budget repair bill would have increased that spending by an additional $180 million, for a total increase of $530 million, or 22 percent, over the last biennium.
Governor Doyle’s vetoes allow a $24.8 million increase to address higher county highway maintenance costs brought on by one of the worst winters in Wisconsin history. And Governor Doyle retains an $18.6 million increase to address caseload increases in the state’s child care assistance program. Overall, however, state spending is reduced by $270 million with Governor Doyle’s vetoes.
Refinancing the tobacco settlement fund must take full advantage of market conditions, and Governor Doyle’s vetoes ensure that the bond refinancing will be structured to deliver the greatest savings to the state and avoid relying too heavily on up-front savings.
Finally, Governor Doyle used his veto to improve the state’s fiscal stability by building a general reserve fund of approximately $100 million. The Legislature’s proposed level of $25 million was not prudent even under good economic conditions.
Governor Doyle’s full veto message is available at: http://www.wisgov.state.wi.us//docview.asp?docid=13749.
posted by Cheryl Hentz at 7:43 PM
4 Comments:
I sure hope those that read the blogs understand that what you have posted here is the correct information. Another local blogger is blogging about the budget that was passed in October of 2007 complete with a link to a Journal Sentinel story from Oct. of 2007. So much for being "informed" yet a few people just keep believing anything posted on that blog. Oh, and I'm sure someone will accuse me of "attacking her" because I pointed out once again that she doesn't know what she is talking about. Of course I'm sure she was just in a hurry and used the wrong link and information in her post...
Teresa, thanks for the comment. To that particular blogger or anyone reading both her blog and this one who may now be confused, here’s some clarification.
As you noted, the actual budget itself was passed and signed in October, some seven months ago. There were even pictures of the actual budget signing ceremony published in several newspapers across the state. For those who may have missed that part of the budget process, here is a link to some photos from the budget signing ceremony (scroll down to "Photos from the budget signing.")
By contrast, what was signed earlier this week, was the Budget Repair Bill - something altogether different.
That same blogger to whom you referred, also stated in her most recent post that (Note the tense she uses; those things bolded are my emphasis, not hers): "The budget includes: an increase in the cigarette tax by $1 a pack, but grocery stores can now give out hard liquor samples. Don't smoke but feel free to have a shot before you load your groceries in your car and drive home."
This blogger’s statement is not accurate. Perhaps she didn't pay close enough attention; maybe she didn't do thorough enough research; or maybe she was merely taking a short sabbatical from political news. But the fact of the matter is, though it was part of the original budget that got passed, this provision was swiftly vetoed by Gov. Doyle, meaning people CANNOT get free shots of hard liquor in grocery stores. Wisconsin Politics has the story here (scroll down to "Doyle uses veto pen to eliminate restrictions on tech college levies, loosen limits on locals.) To read more about that veto and other things about the budget that actually got signed into law and those things which got vetoed, this link takes you directly to a very detailed message from Doyle on the budget. Hopefully this will help dispel some of the misinformation or inaccuracies out there on other blogs.
Can I get some clarification please?
Are you saying that your readers and this blogger, the far out fringe fruitloops from the leftwood land of silliness, are actually praising spending cuts?
Because if you are, you just dropped something...MY JAW!!
I don't believe I said that, but I also don't know why someone would NOT praise spending cuts, provided they're done intelligently and with some common sense. Can you explain why someone wouldn't?
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