KREUSER: No progress on state budget stalemate

WLIP NEWS -

Lower-than-expected tax revenues are causing a state budget crunch. Legislative leaders are trading charges of delaying the process. Assembly Majority Leader Jeff Fitzgerald (R-Horicon) blamed Gov. Jim Doyle and Assembly Democrats of publicly pushing for a quick resolution to the state's budget troubles while privately blocking progress. State Minority Leader Jim Kreuser (D- Kenosha) said this week the final agreement should dip into the transportation fund to help other programs. Support from Assembly Democrats is crucial because many Assembly Republicans are expected to vote against any final deal. Kreuser said Wednesday the Assembly should come to the floor Tuesday to act in time to protect spring highway repair and maintenance contracts. Kreuser also said Assembly Democrats are overwhelmingly opposed to a plan to fix the state budget proffered by legislative leaders, all but guaranteeing the plan would have to be tweaked to get through the Legislature.

Republicans hold a fragile, 52-47 majority in the Assembly and will likely need a significant number of Democratic votes to repair the budget. Assembly Speaker Mike Huebsch (R-West Salem) and Senate Majority Leader Russ Decker (D-Weston) have said they have the framework of a deal they would like to push through the Legislature, but Democratic Gov. Jim Doyle has opposed the plan. Jim Kreuser echoed many of Doyle's concerns Tuesday, saying Assembly Democrats oppose plans to get $247 million by refinancing the state's tobacco settlement money. They also do not like a $125 million accounting gimmick that would book a payment to local schools in the next two-year budget. Kreuser said the final budget deal should also tap the transportation fund and bankroll road projects with increased borrowing. "If the only option is the Decker-Huebsch agreement, then it's going to be tough to come up with the votes in our caucus," he told reporters.If that plan were brought to a vote, only a handful of Assembly Democrats would vote for it, he said.

Lawmakers need to repair the budget they passed in October because tax collections are now projected to come in $652 million lower than originally expected because of the weakened economy.

In a statement, Huebsch said he and Decker were committed to reaching a deal that did not tap into the transportation fund. "I am disappointed that the Assembly Democrats have decided not to join us in this effort to address the serious consequences we know will occur without a budget repair bill," he said in his statement.

Decker was in meetings and unavailable for comment Tuesday. Aide Carrie Lynch said Senate Democrats had put together a bipartisan compromise that protected schools and transportation projects. She said it would be difficult to get Senate approval of a plan that would include using transportation funds to help shore up the budget problem.

Kreuser's comments will likely send Huebsch and Decker back to the drawing board. More Assembly Democrats than Republicans voted for the original budget in October, and Huebsch is expected to again need substantial help from Democrats this time. Decker and Huebsch have not publicly spelled out the precise terms of the deal they have been working on.

Doyle has warned that if a deal is not reached soon, the Department of Transportation may have to hold back on awarding contracts. Starting next Tuesday, the department is scheduled to approve $261 million in construction contracts over the next month.

Assembly Democrats met behind closed doors for about six hours Tuesday. To get to their meeting room in the Capitol, they had to walk past dozens of highway construction workers and union representatives holding signs telling them to protect their jobs by passing a fix soon.

Doyle was not available for comment late Tuesday. Spokesman Lee Sensenbrenner said legislators must act quickly to resolve the budget.

Steven Walters of the Journal Sentinel staff contributed to this report.




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