WisPolitics Budget Blog

The Joint Finance Committee passed the so-called cable competition bill on a 13-3 vote after beating back a motion to table the legislation until January.

Voting against the bill were Dem Sens. Bob Jauch of Poplar and Mark Miller of Monona, and Dem Rep. Mark Pocan of Madison.

Miller called the legislation "an industry favor bill" that will monopolize the industry for large cable and telecommunication companies, and he said it will undermine community access television.

The bill needs considerably more work to ensure "true competition," Miller said.

Pocan said the bill was written by special interests that doesn't even cover the cost for state oversight of consumer protections.

"This is a direct gift to special interests," he said.

But supporters said the bill has been thoroughly vetted through the Assembly, which passed it back in March.

Sen. Dave Hansen, D-Green Bay, said calls to his office were 505-to-1 in favor of the legislation.

JFC co-chair Kitty Rhoades, R-Hudson, said the bill is needed to allow the industry to expand service and accessibility. She said in her district, broadband Internet isn't even available, which puts the region at a distinct disadvantage.

"If we don't start the process we are never going to be able to compete," she said.

Rep. Jeff Stone, R-Greenfield, said the bill will free the cable providers "from the shackles of government regulation and allow them to do even greater things."

But Jauch said he will vote against this bill and any deregulation bills in the future because rural areas like his end up losing whenever deregulation takes place.

The motion to table failed 2-14, with Pocan and Miller the only votes in favor of postponing the bill.

There was also a technical amendment to the bill that passed unanimously. See the amendment here.

The Wisconsin Medical Society filed an 18-page lawsuit to stop the $200 million Patients Compensation Fund tranfer.

See the complaint here.

See WMS's press release here

Rep. Steve Nass, R-Whitewater, is calling on Assembly Speaker Mike Huebsch to schedule an override vote on Gov. Jim Doyle's vetoes that increased the levy limit on local municipalities and technical colleges.

"In the weeks prior to the budget deal, Governor Doyle and legislative leaders repeatedly stated that a budget must be completed in order to protect the homeowners of Wisconsin from the negative effects on property taxes of failing to enact a new two-year spending plan," Nass said. "If the goal of reaching a budget deal was truly about protecting homeowners, then the Assembly should immediately take action to override the vetoes in question."


See his letter to Huebsch here.

Back in July, with a late budget in mind, WisPolitics.com launched its contest to predict the date of final legislative budget passage. A headline in the Friday REPORT of July 20 read: BUDGET PESSIMISTS: MIGHT BE A NOVEMBER BUDGET.

The pessimists were wrong -- but not by much.

But somebody did get it right -- former GOP state Rep. Randy Radtke of Lake Mills.

Radtke, who won a silver-level WisPolitics.com subscription, predicted Oct. 23 at 11:59 p.m., and indeed the budget passed both houses earlier that Tuesday evening and went to Gov. Jim Doyle. He was one of about 20 still in the running.

A former social studies teacher, Radtke served 14 years in the state Assembly before leading the Wisconsin Conservation Corps under Gov. Tommy Thompson and then becoming a lobbyist and political consultant. He's also the managing editor of the Lake Mills Leader weekly newspaper, the educational liaison for the Wisconsin Taxpayers Alliance and co-owner (with his wife, Debbie) of the ad specialty firm RJ Enterprises.

Budget signing ceremony with UW Chancellor Wiley, UW President Reilly, Gov. Doyle, Sen. Robson and Reps. Huebsch and Kreuser

Doyle comments

Huebsch comments

Gov. Doyle, flanked by legislators, signing the budget.


Assembly Speaker Huebsch speaking at the budget signing ceremony.

Doyle's use of his partial veto authority to loosen levy limits in the first year of the budget and wipe out caps on the levies for tech colleges will add $86 million to the state's collective property tax bill, according to the state budget director.

The budget lawmakers approved this week included an estimated increase of the net levy of $656.2 million, according to analysis by the Legislative Fiscal Bureau.

DOA budget director Dave Schmiedicke said Doyle's partial vetoes add about $86 million to that.

The budget lawmakers approved would have included an $80 increase in property taxes this year on the typical Wisconsin home with another $18 increase the following year, according to the Legislative Fiscal Bureau. Doyle's administration estimates a $93 increase under the budget the governor signed and an additional $14 increase the following year.

Senate Minority Leader Scott Ftizgerald, R-Juneau, said in a release Doyle is turning a "deaf ear" to taxpayers desperate for relief.

See Fitzgerald's press release here.

Retired Milwaukee educator Jesus Salas resigned from his position on the UW Board of Regents this morning over Gov. Doyle's position on tuition remission for "qualified students who happen to be children of undocumented workers."

Salas, appointed to the board by Doyle in 2003, wrote his resignation letter in an e-mail to the Governor's office. In addition to the tuition decision, he also cited Doyle's support for Wisconsin's REAL I.D. law and denial of WHEDA assistance to illegal immigrants.

"Today, I refuse to join you in celebrating the signing of the 2007-09 WI budget," Salas wrote. "For us, it is day of mourning for the future of our children who through no fault of their own continue to be denied access to the UW-System."

See the text of the e-mail: http://www.wispolitics.com/index.iml?Article=108926

Gov. Jim Doyle said after the budget signing that his veto to increase levy limits on municipal governments will help decrease the impact of no increase in shared revenue, and will help local officials afford essential services like police and fire services.

"I believe we should have very tight property tax limits in place, and I believe that the proper way to do them is in the budget," Doyle said. "I was disappointed that the Legislature was not willing to put in some additional money for shared revenues, with some more state help so it wouldn't come from the property taxpayers to be able to support police and fire."

There are proposals in the Legislature to limit the governor's veto power, dubbed the "Frankenstein veto" by critics. Doyle said in this case it may have been damaging to have the power of the pen stifled.

"I think it's a good example, let me say, of why the Legislature ought to be very, very careful about this because through that we are able to give municipalities a little better help with what they need. I don't think it's tremendously controversial," he said. "I'm confident it will not be overridden by the Legislature. So in the end you start fiddling around with the governor's veto power and you start fiddling around with the ability to cut out excessive legislative spending or excessive legislation that doesn't make sense, and people better be very careful about that."

Doyle said there should be careful consideration of legislative changes to avoid future impasses in the budget process, following the three-plus month stalemate that marred these negotiations. He said two proposals he thinks should be examined are limiting the legislative session to 90 or 120 days and ending the rollover of appropriations at the conclusion of a fiscal year, but he admitted those steps have pros and cons.

He also said he has "always" supported banning fundraising during budget deliberations.

"I'm not sure it would be the thing that made the whole difference but I think there's no doubt it would help," he said.

Assembly Speaker Mike Huebsch, R-West Salem, praised Gov. Doyle for working with the Legislature through the budget process and limiting the number of vetoes, and said he doesn't expect there to be any override attempts.

"I give him a great deal of credit in working with us throughout this process to limit that number, and while there will be some we disagree on, there were some even that we requested. In the end even in the vetoes we were able to work together and resolve this process," Huebsch said.

Huebsch said he requested the liquor sampling provision be stricken from the budget. "If it is good policy, it should go through the regular process. It should come in as legislation, it should go through committee hearings, and have a stand-alone vote in the Legislature," he said.

Huebsch said he disagreed with Doyle's change in levy limits for local governments.

"The governor had told me he was going to veto this. This is one that I had hoped he would not, but I understood why he was going to do it. He believed because of the lateness of the budget he was going to give greater flexibility," Huebsch said.

While local officials now have the ability to go to a 3.86 percent increase, he said, it will be up to them if they need to go that high.

Former Senate Majority Leader Judy Robson said today following the budget signing that her gender likely was a reason she was deposed by now-majority leader Sen. Russ Decker.

"I was told I was 'too nice' to be a leader. I think that's a gender issue. I think it's sexist, and I told the person who said that it's a sexist comment," she said.

"All women leaders in the Legislature have had coups against them. It's the nature of being a woman leader - or I should say the fallout of being a woman leader."

Listen to Robson's comments here.

Gov. Jim Doyle used his veto pen this morning to eliminate levy limits on tech colleges and loosen the restrictions for local governments in 2007. He also knocked out proposals to allow grocery stores to give away free samples of hard liquor, eliminated changes to the three-tier distribution system for alcohol and nixed a requirement that the state DOT finish the expansion of STH 23 between Sheboygan and Fond du Lac by mid-2011.

The budget lawmakers approved this week capped growth in tech college levies at 4 percent and restricted increases for local governments to 2 percent or new construction, whichever was greater. In addition to wiping out the limits for tech colleges, Doyle's changes mean local governments can increase their levies by 3.86 percent or new construction for 2007.

The tighter controls remain in effect for 2008. Doyle wrote in his veto message that he objects to the restrictiveness for 2007, believing it would affect police and fire services.

"Due to the late passage of the budget bill, local governments have already made significant progress in preparing, reviewing and setting their own budgets for the upcoming year," Doyle wrote. "Requiring communities to limit their levy growth to two percent at this time may result in cutbacks in necessary services."

Doyle vetoed the changes to the three-tiered distribution system because he objects to the inclusion of "policy of this nature in a budget bill." He wrote that he supports the concept of a three-tier system but fears the changes would harm small wineries. He writes that he is directing his cabinet to immediately work with the Legislature on a "workable and equitable approach."

He nixed the provision allowing free samples of liquor, because he strongly objects to "permitting free shots of alcohol to be distributed in places such as grocery stores."

Doyle writes the proposed scheduled to widen STH 23 is "unattainable and may negatively affect other highway projects." He writes the department would not be able to meet federally required studies and other work to commence construction by July 1, 2009, as required in the bill.

He also writes requiring a July 1, 2011, completion date would harm other projects because resources would have to be diverted to STH 23.

See Doyle's veto message here.

See the state budget here.

The budget Gov. Jim Doyle signs tomorrow will have the fewest number of vetoes of any budget in the last 35 years, spokesman Matt Canter said today.

Doyle spent the day reviewing the budget and finalizing vetoes, Canter said. But he wouldn't comment on particular vetoes.

Doyle is scheduled to sign the bill at 9 a.m. tomorrow at the UW-Madison Memorial Union.

Multiple budget watchers say signs point to a limited number of vetoes. But observers agree that the provision in the budget allowing stores to hand out free half-ounce samples of hard liquor is a non-starter for Doyle.

Other potential targets include the three-tiered liquor distribution system inserted during the Joint Finance Committee. A bipartisan group of 50 legislators have asked Doyle to use his pen on the language.

Also, multiple sources expect Doyle to retool levy limits on municipal governments, at least in the first year of the biennium, to lessen the impact caused by the removal of a shared revenue increase.

Sen. Roger Breske, D-Eland, says he's crafting legislation to revive the hospital assessment, a plan that was proposed by Gov. Jim Doyle to bring more federal funds to the state for medical assisstance reimbursement.

See Breske's press release here.

The Wisconsin Medical Society announced this morning it will file a lawsuit to stop the $200 million transfer from the Patients Compensation Fund that is included in the budget passed through the Legislature.

Attorney Tom Pyper, who has been retained by the Wisconsin Medical Society, said the group will file a lawsuit as soon as the budget is published, which will probably be next week. Gov. Jim Doyle is scheduled to sign it tomorrow.

Pyper called the transfer unconstitutional and said it would increase the cost of health care.

"It's a tax on injured patients and families, it's a tax on health care providers and it's ultimately a tax on health on the state of Wisconsin," Pyper said.

Pyper estimated that the lawsuit would probably be decided in the first level of the court system in six to nine months, and he said filing for an injunction to stop the transfer is an option.

See more and audio in the PM Update.

Former Senate Majority Leader Judy Robson didn't meet with reporters following the vote to replace her, but her spokesman Josh Wescott said the Beloit Democrat was "surprised" and "disappointed."

"Her words conveyed to me (were that) there was a feeling among some in the caucus that they decided to go with more 'muscle,'" Wescott said.

According to Wescott, a senator pulled Robson off the Senate floor yesterday to inform her the caucus was planned to "call (her) leadership into question." He didn't ID the senator.

"So after she does the heavy lifting for seven months, is working day and night trying to figure out a way to end an embarrassing budget impasse, at the end of the day, 'Hey, thanks for all your work and by the way we have concerns,'" Wescott said. "I think she's a little frustrated by that."

His boss can't point out any single event or series of events that led to the leadership change, he said.

"That ambiguity is disconcerting to her," he said.

Wescott said Sen. Russ Decker, who replaced Robson as majority leader, was deeply involved in the budget process, and "single-handedly crafted the transportation budget that was much different than what the governor proposed." He called the notion that Decker was shut out of the budget "absolutely ridiculous." He said Robson doesn't feel she gave in too much to Republican demands in an effort to get a final budget deal.

"If that's the reason (for the leadership change), she has absolutely no regrets in terms of the way the budget was put together, and she strongly believes the budget has a lot of good, core Democratic values in it," Wescott said.

Listen to audio of Wescott's comments here.

Newly named Senate Majority Leader Russ Decker was in a playful mood as he met with reporters this afternoon, cracking jokes throughout his first formal media availability since the change in Senate Dem leadership.

"As far as future state budgets go, I think we should start the next one tomorrow. It was a great time," deadpanned Decker, who has served as co-chair of the Joint Finance Committee.

A reporter asked him if he was responsible for putting a provision in the budget bill that allows samples of hard liquor to be offered in stores.

"No I didn't, but I'm looking forward to going to the Pick n' Save back home," Decker joked.

Asked about the differences between himself and Robson, Decker replied, "Well, the obvious one is I'm a man and she's a woman." He continued by saying he's "more to the point" than Robson. "She had her way of doing business, and I have mine."

Asked whether he should be regarded as bringing more "muscle" to the Senate Dems, Decker did his impersonation of Saturday Night Live characters "Hans and Franz."

"Pump you up," Decker said. "I don't know about that. That's what other people might perceive. I've never thought of myself as that."

Questioned about the history of turnover in majority leaders in the Senate, Decker joked he still has his old profession to fall back on.

"I can still lay brick," Decker said.

Listen to audio of the press availability here.

Listen to comments he made immediately after his election as majority leader here.

Gov. Jim Doyle's office announced late this afternoon that he will sign the budget at 9 a.m. Friday in the University of Wisconsin-Madison Memorial Union.

The Legislative Fiscal Bureau compiled a list of three dozen non-fiscal policy items contained in the budget bill awaiting Gov. Jim Doyle's signature.

The items identified incorporation of the Town of Ledgeview, consolidation of the town and village of Rochester, the three-tier liquor distribution system and brew pub permits as some of the items.

"In general, I don't think policy should be part of the state budget; most of these have not had public hearings," said Sen. Rob Cowles, R-Green Bay, who requested the memo.

Cowles said is one of 50 legislators who signed on to a letter to Doyle asking him to veto the three-tier liquor distribution provision because of the detrimental effect it would have on wineries.

See the LFB memo here.

See the letter from the legislators regarding the three-tier liquor distribution system here.

Six Assembly Republicans who signed a pledge promising to vote against tax increases voted to approve the state budget Tuesday night despite the inclusion of a $763.2 million increase in taxes and fees.

Of the 21 Assembly Republicans to sign the no-tax pledge from Americans for Tax Reform, Reps. Don Friske of Merrill, Gene Hahn of Cambria, J.A. Hines of Oxford, Terry Musser of Black River Falls, Scott Suder of Abbotsford and Jeff Wood of Chippewa Falls voted yes on the budget bill.

The remaining pledge signers, including Dem Reps. Sheldon Wasserman of Milwaukee and Bob Ziegelbauer of Manitowoc, all voted against the bill.

Another no-tax pledge circulated by conservative blog Boots and Sabers garnered 11 signatures. All voted against the budget.

Russ Decker told reporters this afternoon that his selection as the new Senate majority leader was not about the budget, even though the move comes less than a day after it was approved.

"I think I bring a stronger message to the table," Decker said.

Decker replaces Judy Robson, who some Dems complained had been unable to effectively deliver their message in the budget debate as well as on other issues.

When asked if he feels that Senate Dems were cut out from the last leg of budget discussions, Decker said, "I would agree to that to some degree."

Decker also said that he would "hopefully" have gotten a better deal for Democrats had he been leader, as well, adding he would have held out longer for the hospital assessment, oil assessment and combined reporting.

Decker said that he decided to challenge Robson for the leadership in the Senate within the last several weeks.

Decker said the vote was not contested and the ballots would be destroyed.

See more in the PM Update.

Russ Decker of Weston emerged from a closed-door caucus this afternoon to announce his fellow Dems had selected him to replace Judy Robson as Senate majority leader.

Dems met last night about a possible change in leadership and went back into caucus about 10:30 a.m. to resume discussions about whether to oust Robson. Decker announced the change 2 1/2 hours later.

Senate Democrats are caucusing again this afternoon following last night's discussion of a leadership change.

JFC Co-chair Russ Decker, D-Weston, said last night that the Senate Majority Leader post remains an open question. Sources indicated Decker is mounting a challenge to Sen. Judy Robson of Beloit.

Sen. Russ Decker of Weston said Senate Dems were still discussing whether to replace Majority Leader Judy Robson, D-Beloit, but no vote was taken tonight.

"Some people were uncomfortable taking a vote today," he said.

Decker said a change remained an open question.

Sources indicated today that Decker was lining up votes in a bid to replace Robson.

State Sen. Bob Jauch of Poplar emerged from the Dem caucus late tonight to say there had been no leadership vote taken.

Asked what Dems had been meeting about for the previous 90 minutes, Jauch said it was "internal stuff" and it had been a "long and difficult process."

"We were united on the floor. We're united now, and that's the way it should remain," Jauch said.

Rep. Tom Nelson, D-Kaukauna, said he has "absolutely, positively no regrets on the sit-in."

Nelson has stayed in the Assembly Chambers since 9 a.m. Thursday morning in protest of the Legislature not passing a budget.

"This was the last, last, last chance to pass a budget," Nelson said. "It was now or never."

Nelson, who voted for passage, said the budget wasn't a perfect document, but the Legislature needed to do its job.

Nelson still won't be able to drive back to Kaukauna and sleep at home tonight: he's staying in Madison, because the Assembly is in session tomorrow. He just won't be spending the night at the Capitol.

Assembly
Rep. Kreuser: Statement on final passage of budget

Rep. Fitzgerald: The 2007-09 budget

Rep. Rhoades: Statement on passage of state budget compromise

Rep. Lothian: Votes 'No' to budget

Rep. Nass: Bad budget deal clears Assembly

Rep. Vos: Budget compromise passes without support of Vos

Rep. Hintz: Comments on passage of state budget

Rep. Jorgensen: Votes "No" to protect taxpayers, schools and state's future

Rep. Wasserman: Unconstitutional raid risks destabilizing Wisconsin's enviable medical malpractice climate and makes budget woes worse

Senate
Sen. Robson: Wisconsin families come first in state budget

Sen. Risser: Statement on Senate passage of compromise budget bill

Sen. Lassa: Budget passes Legislature

Sen. Breske: Congratulations, it's a budget!

Sen. Leibham: Votes against tax increase budget

Other
UW System: Leaders praise governor and Legislature for approving 2007-09 state budget

DPW: Chairman Joe Wineke statement on budget passage

Pharmacy Society of Wisconsin: Wisconsin budget approval imminent

American Lung Association of Wisconsin: New budget will reduce smoking, save lives and health care costs

Nature Conservancy, Gathering Waters Conservancy: Praise governor and Legislature for agreement on Stewardship Fund

Gov. Jim Doyle made the following statement following the Legislature's passage of the budget:

"After a long process, Democrats and Republicans have come together to hold the line on taxes, streamline government, and create real opportunity for Wisconsin families and businesses. Tonight, the Legislature has done the right thing for our schools; for the safety of our neighborhoods; for the health of our kids and the health of our economy.

"Throughout this process, I fought to protect our state from deep cuts to our schools and cuts to police and firefighters in our neighborhoods. While we all had to make some difficult compromises, I believe the bill that passed tonight reflects our state's values, protects our priorities, and invests in our people.

"Tonight the Legislature moved forward in a bipartisan fashion on a budget that supports our universities, makes health care more affordable, grows our economy, and cuts taxes for middle class families in the areas they need it most."

Immediately after approving the state budget, Senate Dems headed to a closed-door caucus late tonight for what multiple sources indicated could be a vote on whether to change leaders.

Some Senate Dems have been unhappy with final negotiations over the budget, feeling they were shut out and too much was given up to Republicans to reach a final deal.

The sources indicated Joint Finance Co-chair Russ Decker, D-Weston, was lining up votes today to challenge Senate Majority Leader Judy Robson, D-Beloit, to lead the caucus.

Check back later for an update.

The tally is 18-15. Democrats vote for, Republicans against.

There appears to be a problem with the microphones in the Senate chamber, which is usually very hard to hear in anyway.

Senate Minority Leader Scott Fitzgerald, R-Juneau, said Republicans were more successful at getting what they want in this budget, and said that's "something we'll talk about next budget cycle."

He also ripped Healthy Wisconsin, saying that also will be a campaign issue next fall.

Sen. Jon Erpenbach, D-Middleton, complimented Senate Majority Leader Judy Robson on the "fine job she did" in negotiating the budget, and defended Healthy Wisconsin. "I am damn serious about Healthy Wisconsin," he said. "People need health care coverage."

The Senate is being called to order. Could be a quick one. Sen. Mike Ellis, R-Neenah, is giving senators the "shush" sign as he comes in.

"Nobody (talk) but Robson and Fitzgerald," he says.

The vote is 60-39. Twenty-three Republicans voted yes, along with 37 Democrats.

See the roll call here.

Rep. Spencer Black, D-Madison, urged passage, saying the time for a new budget is 3 1/2 months ago, and praised the stewardship reauthorization.

Rep. Leah Vukmir, R-Wauwatosa, said she was proud of Speaker Huebsch for "doing the best he could with this budget," and that she is grateful for his effort to eliminate taxes. But she said it's not good enough, and ripped the cigarette tax as an unstable revenue source, and the PCF fund transfer as unconstitutional. Vukmir, a nurse, called the bill "a Democrat budget" that spends too much.

"I have to take issue with those who say this compromise lives within the means of the taxpayers. It does not," she said.

Rep. Steve Nass, R-Whitewater, said he'll vote no today "on behalf of the taxpayers of Wisconsin," and predicted the Legislature will be back soon for a budget repair bill after the PCF transfer is subject to an injunction.

Rep. Christine Sinicki, D-Milwaukee, said she was "very conflicted" about voting for this budget, but as the day wore on she came to a realization that it is a compromise. She said state employees deserve to have a state budget behind them. But, she said, she hopes the KRM commuter rail project can be kept alive some way.

Rep. Pedro Colon, D-Milwaukee, said the state's largest city "left very tangible things on the table" that will impact critical services. But he is voting for the budget because it's time to move on and govern, he said.

"The reality of it is, those interested in governing and interested in real compormise I suspect will vote yes," he said. "Those who never will compromise and never wanted to do anything I suspect will vote no."

Rep. Frank Lasee, R-Bellevue, said Wisconsin is one of three states that doesn't require a balanced budget. The others are California and Illinois, he said.

"If we were a private company we'd to to prison for what we do here," he said, jst a small snippet of 20-plus minute speech. "And that's not just rhetoric, that's the way it is."

Rep. Phil Garthwaite, D-Dickeyville, said he "hates" the cig tax increase, the PCF transfer and the increase in vehicle registration fees. But he "doesn't hate" poor people and sick kids and schools.

"You have to balance the good and the bad," he said.

"I've never been accused of being the brightest guy," he said. "But I wasn't naive enough to think we'd solve every world problem in one budget."

Rep. Sheldon Wasserman, D-Milwaukee, blasted the $200 million transfer of funds from the Patients Compensation Fund, calling this a "sad day for the Wisconsin Legislature."

He said the transfer violates both the U.S. and state constitutions, and is taking private funds "without just compensation." He also called it "fiscally irresponsible."

Wasserman, himself a doctor, predicted the transfer "will drive medical malpractice costs up dramatically," and reminded legislators of the lawsuit threatened by the Wisconsin Medical Society over the transfer.

He criticized Republican leadership, who he said chose the transfer over a hospital assessment, even though many hospitals were asking for the assessment to be enacted.

Assembly Minority Leader Jim Kreuser said in his remarks that there will be bipartisan opposition to this budget. On the other hand, he said, it will also have bipartisan support.

"Each side has won and lost on issues," he said. "I can tell you I lost on some," he said, mentioning the funding fight for the KRM commuter rail project.

But, he said, "the budget is better because of the input from both sides."

The Kenosha said there is a lot in the budget for Democrats to like.

"A lot of the things Governor Doyle presented to us in February are in this budget tonight," he said, mentioning BadgerCare Plus, school funding and stewardship reauthorization.

Assembly Speaker Mike Huebsch said this day was a long time coming, but he knew it would come - when a bipartisan group of legislators passes a state budget.

In his opening statement on the budget bill, Huebsch said the compromise bill keeps government spending in line with taxpayers ability to pay. Ninety-eight percent of the tax hikes in the Senate Democrats' plan have been eliminated, he said.

"We said no to the notion that we could tax our way out of a spending problem," he said.

Roll call is underway.

Taxes and fees would go up $763.2 million over the biennium under the budget before lawmakers today, less than half of what was proposed in Gov. Jim Doyle's original budget, according to a Legislative Fiscal Bureau memo.

The budget also includes enhanced collection measures that are projected to increase GPR collections by $20.8 million for the biennium.

Sen. Mike Ellis, who requested the report, complained the increased taxes and fees along with the $1.2 billion in revenue growth already projected for the biennium means the state would take almost $2 billion more out of the private sector over the next two years at a time when the economy seems to be on shaky ground.

Ellis pointed to the Federal Reserve’s indications that it may drop interest rates to head off a recession, oil prices, continue problems with the subprime housing marking and other factors make him wary about the increases.

"All of these things say to me this may not be the time to be pulling this money out of the private sector," said Ellis, R-Neenah.

See the memo here.

Assembly Dems have finally broken caucus.

Senate President Fred Risser extended the Senate recess until 7 p.m. The Senate is waiting for the Assembly to take action.

Speaking with a gaggle of TV reporters on the Assembly floor moments ago, Assembly Speaker Mike Huebsch said there will be a budget by the end of the day.

"I don't think there's any question about the fact we'll have resolution tonight," the West Salem Republican said.

Assembly Democrats remain in caucus. LFB staff just went back into the caucus. Seems the members may have some questions about school funding.

Dem leader Rep. Kreuser entered the speaker's office a few minutes ago to chat with Rep. Huebsch.

Assembly Republicans are out of caucus.

UPDATE: Boy was I wrong.

The Assembly Dem caucus is said to be winding down. Republicans are still talking over the budget.

The Senate, which had been called into skeleton session at 10 a.m. and was adjourned until 2 p.m., has now been adjourned until 5 p.m. to allow time for the Assembly to do their work.

The Assembly called to order, then went to partisan caucuses.

Fourteen of those GOP lawmakers who signed the pledges to oppose any tax increase indicated to WisPolitics yesterday or said in public statements that they're leaning strongly against or will vote no on the budget bill.

The other dozen who signed the pledges said they needed more time to review the bill or didn't return calls.

That means at least half a dozen Republicans may be needed to join the more than 40 Assembly Dems who voted for Doyle's revised bill a week ago to get the compromise budget plan through the Assembly.

"I'm sure Mike (Huebsch) is probably there" in terms of the needed votes, said Rep. Dean Kaufert, R-Neenah, who expects the bill to pass.

Those lawmakers who signed a pledge the Americans for Tax Reform’s Taxpayer Protection Pledge during their campaigns include Reps. Garey Bies, R-Sister Bay; Don Friske, R-Merrill; Mark Gundrum, R-New Berlin; Gene Hahn, R-Cambria; J.A. Hines, R-Oxford; Mark Honadel, R-South Milwaukee; Joel Kleefisch, R-Oconomowoc; Bill Kramer, R-Waukesha; Frank Lasee, R-Bellevue; Tom Lothian, R-Williams Bay; Terry Musser, R-Black River Falls; Scott Newcomer, R-Hartland; Jim Ott, R-Mequon; Don Pridemore, R-Hartford; Roger Roth, R-Appleton; Scott Suder, R-Abbotsford; Robin Vos, R-Racine; Leah Vukmir, R-Wauwatosa; Sheldon Wasserman, D-Milwaukee; Steve Wieckert, R-Appleton; Jeff Wood, R-Chippewa Falls; Bob Ziegelbauer, D-Manitowoc; and Rich Zipperer, R-Pewaukee.

Signing a pledge from the blog Boots & Sabers were Reps. Scott Gunderson, R-Waterford; John Nygren, R-Marinette; Rep. Daniel LeMahieu, R-Cascade; and Steve Nass, R-Whitewater.

Reps. Kramer, Lasee, Lothian, Pridemore, Vukmir, Ziegelbauer and Zipperer signed both pledges.

Those who indicated to WisPolitics personally or through aides they will be voting no, or who have made public statements about their intention, are: Kleefisch, Kramer, Lasee, LeMahieu, Lothian, Nass, Newcomer, Ott, Pridemore, Roth, Vos, Vukmir, Ziegelbauer and Zipperer. All are Republicans except Ziegelbauer.

"I signed a taxpayer protection pledge during my campaign and vowed never to vote for a tax increase, and I’m sticking by that pledge," said Kleefisch, R-Oconomowoc.

Kramer, R-Waukesha, said he's bothered by the increase in the cig tax and the $200 million transfer from the Patients Compensation Fund. "You take money from people for a specific purpose and use it for a different purpose; that's a lie," he said.

Ziegelbauer, one of three Dems who opposed the guv's revised budget last week, said he still has problems with the cigarette tax increase and the Patients Compensation Fund transfer.

"Those are two fatal flaws," Ziegelbauer said.

GOP state Rep. Brett Davis, the only Assembly Republican to vote for Doyle's revised budget last week, said he'll be a yes vote again today.

He said the new budget isn't "substantially different" from the one he supported last week. He said he has no regrets about last week's vote and is comfortable voting yes tomorrow even though he has concerns with some aspects about the new deal, including the Patients Compensation Fund transfer.

The office of state Rep. Al Ott, R-Forest Junction, said he plans to vote yes unless there's a surprise in the final details.

Assembly members are slowly beginning to appear in the chamber. One conspicuous absence - Rep. Tom Nelson, D-Kaukauna, who obviously gave himself permission to attend his Dem caucus during his sit-in.

The Assembly is expected to quickly convene to a partisan caucus after roll is called. Predictions have the Assembly voting on the bill around mid-afternoon. Then it will go immediately to the Senate for a vote.

The vote is 7-1. Sen. Scott Fitzgerald is the only no vote.

The report will go to the Legislature tomorrow, with the Assembly taking it up first.

The amendment failed 4-4, with the four Dems voting for, and the four Republicans voting against.

The amendment would insert a $13 rental car tax increase for Kenosha, Racine and Milwaukee counties to fund the expansion of the KRM commuter railway project.

The KRM is potentially "the most important economic development tool for southeastern Wisconsin," Rep. Kreuser said.

Added to the current $2 fee on car rentals in the three county area, the fee would generate $4.9 million annually for the regional transit authority.

Rep. Huebsch said the proposal is a 650 percent increase in the tax, and won't pass today, but he said the issue is likely to come back again. "Perhaps someday its time will come," he said.

Sen. Robson said one of the many policy items that was hard to see go from the budget is the provision that would have ended the practice of continuing pay for Milwaukee police officers who are fired. Rep. Huebsch said he will work with Sen. Tim Carpenter and Rep. Barb Toles, two Milwaukee Dems, to bring a bill to the Assembly floor to address the issue, possibly by the end of the year.

Senate Majority Leader Judy Robson kicks off the meeting by giving a list of attributes of the budget, which she said is "designed to reflect the values and priorities of Wisconsin." She said the budget is consistent with the state motto, "Forward."

Among the benefits she mentions: BadgerCare Plus, Wisconsin Covenant, SAGE expansion, aids to rural and high poverty school districts, funding for the UW System's Growth Agenda, more financial aid for college students, veterans tuition remission, investment in transportation infrastructure and renewable energies, and reauthorization of the stewardship program.

She lamented the removal of the Healthy Wisconsin universal health care plan. She said Senate Dems knew it would face "an uphill battle."

"There's not a lobbyist in this building who liked it," she said.

But now is the time for compromise, she concluded.

Assembly Speaker Mike Huebsch said he's glad a budget can be offered that taxpayers can afford, and looks forward to passage of this bill.

Looks like the meeting will finally begin in a couple minutes. All the principles have arrived.

We have our first sign that there will indeed be a meeting of the conference committee today.

Senate Minority Leader Scott Fitzgerald, still recuperating from injuries from a motorcyle accident, just came in on crutches. He's the first to arrive.

See it here.

A new LFB memo finds that the budget compromise agreed to by Gov. Doyle and leggie leaders will lead to a $178 property tax increase on the medial valued home over the biennium.

The memo analyzes five different budget propoals and their property tax implications.

See it here.

Still no sign of conferees for the scheduled 3 p.m. meeting.

Rep. Jim Kreuser, D-Kenosha, will make a last attempt to get a funding source for the proposed Kenosha-Racine-Milwaukee rail line into the budget this afternoon in conference committee.

Kreuser, the Assembly Minority Leader, will introduce an amendment at conference committee to include a $13 car rental fee increase for Kenosha, Racine and Milwaukee counties.The KRM project would run on existing rail along a 33-mile corridor between southeastern Wisconsin cities, from Kenosha to Milwaukee.

The Senate included the KRM funding in its budget version, but it was removed by the Assembly and not included in the agreement announced Friday. Kreuser identified the loss of the KRM funding as one of his biggest regrets about the compromise package.

The conference committee can amend the budget report today, but amendments can't be offered tomorrow in the Legislature, when the Senate and Assembly will take an up or down vote.

The eight-member conference committee will meet at 3 p.m. today to vote on the report of the state budget agreement.

Assembly Speaker Mike Huebsch circulated a Legislative Fiscal Bureau memo this morning showing the compromise budget includes a 6.6 percent spending increase for all funds.

The LFB memo compared spending increases for all funds, GPR and GPR plus new SEG funds for the various versions of the budget produced by the governor, Joint Finance, the Senate, the Assembly, the governor's revised budget and Friday's package.

Read the memo here.

Rep. Steve Nass, R-Whitewater, is saying he'll vote against the budget agreement.

Americans for Prosperity delivered toy pigs to legislators as a symbol of their displeasure with the agreement, and Huebsch and Doyle received hearing aids.

See Nass' release here.

See the AFP press release here.

Both the Wisconsin Hospital Association and the Wisconsin Medical Society issued statements expressing their reservations with the new budget proposal.

The WHA lamented the exclusion of the hospital assessment, saying in a statement that the measure "could have been used for much needed Medicaid payment improvements for Wisconsin's safety net hospitals."

The Hospital Association had previously opposed the budget until Gov. Doyle reworked the proposal in his revised budget last week. The WHA did commend the BadgerCare expansion and income tax deductibility for health insurance premiums included in the new budget.

See the WHA statement here.

The Wisconsin Medical Society, meanwhile, blasted the $200 million transfer from the Patients Compensation Fund. WMS President Clarence Chou said the transfer "essentially guarantees that the state will have to defend itself in court."

"The Fund is for injured patients and their families, not for one-time fiscal band-aids," Chou said in a statement.

See the WMS statement here.

After months of disagreement on a state spending plan, Gov. Jim Doyle and legislative leaders came together late Friday to announce that a deal for the 2007-09 budget.

Doyle said both sides had to make "very difficult compromises."

"But the Legislature is elected to get things done, and at times to put aside partisan differences, at times to make some very hard compromises, and to come together and to do what's right for our state," Doyle said.

Assembly Speaker Mike Huebsch, R-West Salem, said he was satisfied that the budget agreement keeps state spending at a level taxpayers are able to afford while meeting "the needs of those individuals who are going to get funding for the programs we put in here."

The package includes a $1 per pack increase in the cigarette tax and a $200 million transfer from the Patients Compensation Fund to balance the books and pay for new programs like the expansion of BadgerCare.

But it does not include some other revenue uppers that Doyle had originally proposed, including a tax on hospitals designed to generate more federal money for medical assistance or the tax on oil companies to pay for transportation projects.

Though leaders have signed onto the plan, there remains some question if the package will be approved by the Republican-controlled Assembly, where 25 members have signed some form of "no tax" pledges, or the Dem-controlled Senate, which gave up its universal health care plan Healthy Wisconsin and other priorities.

The budget conference committee will convene to vote on the budget Monday. If it receives three votes from each house, the bill will then go to the Assembly and Senate for a vote on Tuesday.

Huebsch would not say whether the proposal will receive a majority of the votes in his caucus.

"We're going to continue to talk to our caucus and figure out where we're at," Huebsch said. "Each one of my members, as I've said many times, contrary to what many people think, the speaker does not tell members of his caucus what they're going to do."

Senate Majority Leader Judy Robson, D-Beloit, said she believes the bill will pass the Senate.

"Most of the spending that is in this package is the same as the bill that we passed in special session," Robson said.

Huebsch said minus the oil tax, funding for transportation will reflect the funding levels the Assembly approved in its budget back in July.

"Virtually all of the same fees that were included in the governor's budget that also then passed the Assembly are included in this transportation budget," Huebsch said. "The real difference is the franchise fee and the fact that will not be included."

Huebsch said there will be an increase in bonding to pay for transportation needs as well. "I wouldn't call it a major increase in bonding," he said.

Doyle and the leaders did not comment when asked about the threatened lawsuit by physicians over the PCF transfer. Robson said it is a "one-time" transfer, and there is language in the bill to protect it from "raids."

The bill allows for a 2 percent increase per year in local government levies, the position the Assembly staked out in its budget.

To explain the school funding formula, Doyle called his state Budget Director Dave Schmiedicke to the podium. He said under the proposal a $79 million dollar increase in school equalization aid will be paid out through the school levy credit.

"It still will have the same effect on the property tax bill statewide. So instead of being paid out through school equalization it will go out directly on to the property tax bill through the school levy credit this year," he said.

The credit, with the additional $79 million, will rise to $672 million, Schmiedicke said, and the proposal, if adopted, will add another $150 million in the second year to the levy credit.

Doyle said the bill includes more than $400 million in spending cuts compared to the budget he originally introduced.

"A lot of that is things I care a lot about," Doyle said.

Doyle said he doesn't expect the cuts to cause any layoffs to state workers, but it will require "some very, very difficult and hard management of state agencies."

"The level of the cuts that are being imposed on state agencies are significant, and I believe we are going to be able to manage this," Doyle said. "Our cabinet secretaries have a really difficult job ahead of them, and it means they're probably going to have to impose some pretty strict hiring freezes and other restrictions as well as handling the retirement of baby boomers over the next couple years in a very careful manner."

The budget does not include a proposed $13 increase in the rental car fee for Kenosha, Racine and Milwaukee counties for fund a commuter rail project for southeast Wisconsin. It was a proposal that Assembly Minority Leader Jim Kreuser, D-Kenosha, and Robson were regretful was not included in the final package.

Asked to identify the biggest sacrifice each of them had to make to reach an agreement, Kreuser named the KRM funding and the allowance for academic staff at UW campuses to organize.

Robson said the biggest sacrifice for Senate Dems was giving up Healthy Wisconsin.

Huebsch said for Assembly Republicans, it was accepting a tax increase.

"Even though it was the cigarette tax increase, that was the biggest challenge - accepting an increase that is reflected in the cigarette tax," he said.

Doyle said he concurred with Kreuser and Robson's regrets, but also identified his plan to mandate health insurance coverage for children with autism.

"I just don't see any good reason that isn’t the case, but I'm far from giving up on that fight," he said, adding that he hoped a Senate bill that addresses the issue will move forward.

Doyle said he doubts there will be "if any, very few vetoes."

"That's not to say there might not be a couple of vetoes here or there," Doyle said. "But we are in a very different position than we have been in either of the other budgets that I've had where the budget essentially was passed by an all Republican Legislature without any input from us and then put on my desk. Under that process I really go to work."

Listen to opening remarks at the press conference here.

Listen to the Q&A with reporters here.

See the governor's press release.

See the fact sheet.

Here are some details of the budget deal that Doyle and lawmakers are announcing tonight.

According to the governor's office, the deal would:

-fund two-thirds of public school costs
-moves forward on Doyle's Wisconsin covenant plan
-provide $3 million for 4-year-old kindergarten
-provide $3.2 million for school breakfasts
-provide $27 million for smaller class sizes
-change the school financing system to help rural districts with transportation costs
-change school financing formula to help districts with declining enrollments
-provide $32 million for financial aid to help with college costs
-keep commitment to provide free college tuition to Wisconsin veterans with $12 million
-fully fund the UW System's growth agenda
-include the governor's BadgerCare plus initiative to ensure at least 98 percent of Wisconsin residents have health care, offer families the opportunity to buy affordable health care and expand coverage to about 70,000 adults
-make health premiums tax free
-increase the cigarette tax by $1 a pack; $30 million would go to smoking cessation/prevention programs
-include $15 million in the second year of the budget to make Wisconsin a leader in renewable energy and fight against global warming
-include tax credits to grow and expand the bio industry
-include tax credits to modernize the cheese industry
-create a tax exemption for Wisconsin manufacturers for energy costs
-increase funding for state job training programs with 75 percent dedicated to manufacturing
-reauthorizes the Stewardship Fund at $85 million a year for 10 years with legislative oversight
-leave the state with a surplus of $55 million at the end of 2008-09 on top of the $50 million that Doyle has already deposited into the state's rainy day fund
-provide tax cuts to families for child care, health care and college costs
-end the tax on Social Security benefits
-restrict property tax increases to less than the rate of inflation for the average Wisconsin home

According to Gov. Jim Doyle's office, a budget agreement will be announced at 7:30 p.m.

Senate Majority Leader Judy Robson, D-Beloit, came out of the Capitol about 10 minutes ago in search of some caffeine.

"I'm going to get one of those big tall cappucinos," she said. "It could be a long night."

An official announcement of a budget deal is still waiting as conversations continue to sew up details.

Gov. Jim Doyle's office had indicated a statement would be coming around 5 p.m., but that was put off as talks continued.

"We're still talking," said Assembly Speaker Mike Huebsch, R-West Salem, as he walked through the halls of the Capitol. "We're getting very close. I'm very optimistic with the talks we've had and hopefully there will be an announcement in the next couple of days."

Huebsch declined to discuss details of the proposal, saying the sides were still talking about transportation and "every other area of the budget and how we fund those areas."

Legislative offices received an email this afternoon from the Legislative Technology Services Bureau saying the upgrade of a system - used by LRB drafters - that was planned for this weekend is being postponed. The systems will remain up over the weekend.

The email:


From: Rugowski, Mark
Sent: Friday, October 19, 2007 4:00 PM
To: Rugowski, Mark
Subject: Oracle and Text2000 Server Maintenance Postponed


As a result of users needs, the maintenance for these servers this weekend is being postponed. The Text2000 & Quick Silver drafting systems along with the Committee Clerk system will remain up over the weekend.

This afternoon's meeting between the governor and legislative leaders broke up after about half an hour, sources said.

There were no planned public announcements of a deal as of 3 p.m.

The governor and legislative leaders were meeting this afternoon on a proposed budget compromise that would increase the tax on cigarettes by $1 a pack and include a $200 million transfer from the Patients Compensation Fund, according to multiple sources.

The proposal would drop Gov. Jim Doyle's proposed hospital tax as a concession to collect as many Assembly GOP votes as possible, according to the sources. The package also includes several funding earmarks for Milwaukee that the governor has supported for the state's largest city.

Gov. Jim Doyle, Assembly Speaker Mike Huebsch and Senate Majority Leader Judy Robson were attending the 2 p.m. meeting to discuss details of the proposal.

Huebsch spokesman John Murray would not comment on the proposal other than to say the latest offer on the table was "tentative" and warning that any deal could fall apart.

Rep. Steve Nass, R-Whitewater, sent a letter to Assembly Speaker Mike Huebsch, R-West Salem today asking him to follow "Assembly tradition" and not schedule a floor vote on the budget unless a majority of GOP caucus members can vote in favor of it.

The letter follows speculation that a handful of GOP members may join with minority Democrats to pass a budget bill.

See the letter here.

Rep. Tom Nelson, D-Kaukauna, survived the first night of his sit-in at the Assembly chamber, despite his air mattress deflating and having two "unidentified visitors" wake him up around 2 a.m.

Nelson said two people took a pillow from his head and gave him a surprised look when they uncovered him.

"They said, 'Whoa, we thought you were dead!'" Nelson said this morning. Nelson suspected the pair were Capitol staff and he believes they took a picture with a camera phone and then left.

Nelson expanded his movie collection at his desk to include an Oliver Stone box set and said that Rep. Andy Jorgenson, D-Fort Atkinson, and his family will join him for dinner tonight.

Photos of Rep. Tom Nelson, D-Kaukauna, working and talking on his phone during his sit-in at the Assembly Chambers

Rep. Phil Montgomery, R-Ashwaubenon, said in a press release late today that a budget resolution is imperative before local governments set their tax levies.

"Property taxpayers could pay if further delays in the state budget cause municipal governments to set their tax levies unaware of state funding levels," Montgomery said. "The property tax freeze that was in place to protect taxpayers for the past two years has expired, and it's crucial we put a state budget in place that reinstates the limit and protects property taxpayers."

Montgomery said he requested a meeting with Assembly Speaker Mike Huebsch to discuss his concerns, and said he is "proud to support" the speaker and the "Assembly Republican majority that has helped to change the debate on taxes in our state."

Staff for Huebsch and Montgomery downplayed the meeting, which some inside the Capitol saw as a sign that movement was afoot among Assembly GOP moderates.

"The speaker met with a number of our members, like he does every day," Huebsch spokesman John Murray said.

See Montgomery's press release here.

Rep. Tom Nelson's desk is littered with papers, some books, a PBS documentary DVD and what's left of what he ate today following the first day of the Kaukauna Dem's sit in over the budget.

Nelson spent much of the day figuring out the "logistics" of his sit-in, as in who can bring him pillows, how to get food and what all he can do from the empty Assembly chamber. He said he spent much of the first day doing interviews with reporters, talking with well-wishing visitors and legislators, draining his cell phone battery, and working on constituent cases and letters.

Nelson also said he received an e-mail from the L.A. Times, asking to do an in-person interview with him tomorrow in the chambers.

Nelson is going to use an air mattress tonight, saying he's pretty tired and going to turn in early.

A petition to send the Legislature into extraordinary session to deal with legislation to break out school funding and shared revenue from the rest of the budget failed to receive the required majority of senators' signatures by today's deadline.

All 15 Senate Republicans signed the petition, but no Democrats did. The petition required a majority of signatures from members of each house to force an extraordinary session. All 52 GOP members of the Assembly signed, along with Dem Rep. Bob Ziegelbauer of Manitowoc. The Senate fell two signatures short of the required majority.

Senate Minority Leader Scott Fitzgerald, R-Juneau, and Sen. Glenn Grothman, R-West Bend, held a press availability this morning to slam the Senate Dems for not forcing an extraordinary session.

Fitzgerald spokesman Ryan Murray said they circulated the petition to "put every Democrat in the driver's seat. They can't hide behind [Senate Majority Leader] Judy Robson any more."

Read the petition here

Assembly Speaker Mike Huebsch said he thinks that he and Gov. Jim Doyle are getting "much closer" to finding breaking the budget impasse, the West Salem Republican said following a meeting of the Assembly Rules Committee.

He did not offer a timeline for when he thinks a budget will be done.

Huebsch called Rep. Nelson's sit-in is a ploy to get media attention and that it won't make a difference either way.

"It is surprising to me that they have gone so far now as to resort to sit-ins to call for higher taxes in the state of Wisconsin," Huebsch said. He added that he is going to just ignore Nelson's sit-in and that it will have no impact on breaking the budget impasse.

Listen to of Huebsch's remarks here.

Assembly Dems on the Rules Committee voted against a floor calendar for next Tuesday, saying it's not appropriate for the Assembly to take up non-budget bills while the budget remains unresolved. The calendar passed on a 6-4 party-line vote.

Assembly Majority Leader Jeff Fitzgerald, R-Horicon, said Democrats can't call this a "do-nothing Legislature" and then try to block attempts to pass legislation.

"You can't have it both ways," Fitzgerald said.

Meanwhile, Gov. Jim Doyle will be in Menasha this morning with local hospital officials to urge legislators to adopt his budget plan that includes an assessment on hospitals.

Rep. Tom Nelson, D-Kaukauna, began a sit-in this morning at his Assembly chamber desk. He says he won't leave until a budget passes both the Assembly and Senate.

See his press release here.

Nelson angrily read a statement at the end of the Assembly's special session Monday, demanding that the lawmakers keep working until they reach a budget agreement.

Union supporters' counterrally in the State Capitol before the AFP demonstration






Rally and counterrally

State inmates will be removed from county jails in December if a new budget isn't passed, according to a letter Corrections Secretary Rick Raemisch sent today to sheriffs in 15 counties that have jail bed contracts with the state.

Raemisch also says that contracts will not be renewed for 2008.

The Division of Adult Institutions is studying how to absorb the 600 inmates currently housed in county facilities into the state prison system, Raemisch writes in the letter.

See Raemisch's letter here.

Participants in an Americans for Prosperity taxpayer rally who pushed lawmakers to hold the line on taxes were met by a counterdemonstration that demanded legislators finish their work on the state budget as the two sides exchanged barbs outside the state Capitol.

Yellow police tape separated the two sides around the Capitol, and though contentious, Capitol police did not report any arrests. They estimated 300 to 350 AFP demonstrators and 700 to 800 union protesters.

AFP speakers were booed by counter demonstrators throughout the 40-minute rally as the protesters paused to honk air horns, yell "liar" and chant "bull----." At points, the boos matched and overpowered the amplified speakers.

Boots and Sabers blogger Owen Robinson said that the Democrats' budget is "dumping out money like it's candy."

He also called the legislators who signed his pledge vowing not to vote for a budget that includes tax increases the "taxpayer caucus."

Republican Party of Wisconsin chairman Reince Priebus quoted Gov. Jim Doyle's remarks from his first state of the state address, when he pledged he would not raise taxes to fix the state's deficit at the time and complained Wisconsin spends too much.

"He took a page from President Reagan's notebook," Priebus said. "The difference is Reagan meant it and Doyle lied."

All the speakers railed against the Senate version of the budget, which included Healthy Wisconsin and, with it, $18 billion in tax increases.

The taxpayer rally filled up quickly as it neared noon, with buses dropping off participants at the King Street entrance to the Capitol, where a state was set up. An AFP staffer said the group had 400 people registered to attend.

Members of the rally held signs emblazoned with "Oink, Oink," "Doyle lied, jobs died," "No new taxes," "Keep your hands off my wallet." Their opposition held up union flags and signs that read, "Get-R-Done" and "Pass a budget" while sporting aprons emblazoned with "Don't let the Legislature butcher our state budget." Several trucks sporting union flags and signs circled the Capitol throughout the speeches, often honking their horns.

Despite catcalling back and forth between the Americans for Prosperity rally and the union counterdemonstration, the clashes did not escalate beyond verbal taunts. One back-and-forth involved a man in the taxpayer rally yelling, "Pay for your health care!" only to be met with boos. One protester in a green shirt provided by the unions unplugged one of the AFP speakers, but it was quickly plugged back in.

Before the rally, hundreds gathered around the Capitol rotunda, marching in circles and yelled "Do your job!" along with chanting "What do we want? A budget! When do we want it? Now!"

A handful of speakers, including Dane County Executive Kathleen Falk, the head of a large state employee labor union, and the heads of the state counties and cities advocacy groups, talked this morning about the impact of the delayed budget. Each tried to prod the Legislature into reaching a budget agreement.

"Failure to act will mean real cuts that affect real people and cause real pain," said Marty Beil, executive director of AFSCME Council 24, at the press conference in the Capitol's Senate Parlor. Members from various state labor unions packed the room, while many more gathered downstairs in the Capitol and outside.

The press conference was scheduled in advance of a rally by anti-tax group Americans for Prosperity at the Capitol. The labor unions have joined to stage a counter rally. Early on, it seemed the number of attendees for the counter rally will dwarf the Americans for Prosperity rally.

Beil made reference to the AFP rally during the press conference, saying the counter-rally will send a "clear message to these right wingers that Wisconsin will survive."

"They're (the AFP) here to talk about how we strip Wisconsin of government," Beil said. "We're here to tell them they're wrong ... It's unfortunate that Republicans have allowed that group to hijack them."

Falk said she has done her job and submitted a budget.

"The taxpayers of Dane County hired me to do my job, and I've done my job every single year for 11 years on time, getting my budget to the citizens," she said. "It's time for the Legislature to do their job."

Ed Huck, executive director of the Wisconsin Alliance of Cities, said while the current budget proposal doesn't include vital shared revenue increases for cities, it does include many provisions that mayors across the state care about, such as funding for the UW System, funds for public health and safety.

"The folks that are coming here today to talk about no budget and no new taxes ought to be asking the question, 'Why should they be paying more when so many are paying nothing?'" Huck said. "Because that's the real question in Wisconsin, that's one of the questions that needs to be answered for Wisconsin.

"Holding out on a budget is nothing more than posturing for those who already have against those who don't have," Huck said.

Listen to the press conference here.

AFT-Wisconsin debuted a statewide 60-second radio ad today that warns of teacher layoffs and increased class sizes due to the delayed state budget.

"Speaker Huebsch and the Assembly Republicans are blocking a compromise and they refuse to pass a budget that makes big oil and big tobacco companies pay their fair share of taxes," says a narrator.

The ad encourages listeners to contact Huebsch and tell him to "stop siding with the special interests."

Listen to the ad here.

The Legislature's top two Dem leaders accused Assembly Speaker Mike Huebsch of holding the state hostage because half of his caucus doesn't want a budget.

But Huebsch, R-West Salem, countered Dem lawmakers fail to understand the only thing that will pass his house is a proposal that spends and taxes less than the one the Assembly rejected last night.

Dem leaders Judy Robson in the Senate and Jim Kreuser in the Assembly questioned why Huebsch didn't bring his last offer to the floor last night for a vote. The speaker said he doesn't know whether he would have enough GOP votes to pass his last offer, saying the governor's Doyle's decision to call a special session derailed that conversation.

That offer included an increase in the cigarette tax and a transfer from the Patients Compensation Fund.

Huebsch acknowledged he would lose GOP votes for any proposal that includes a tax increase and said he's now willing to go to his caucus to get as many votes as possible for his latest proposal and then seek enough Dem support to get it through the Assembly.

Kreuser, D-Kenosha, suggested Huebsch isn't interested in passing a budget because he knows approving a compromise could jeopardize his leadership position in a caucus with two dozen members who signed a pledge opposing any tax increase.

Responding to a question, Kreuser said, "So what you're saying is that the longer we don't have a budget, the longer he gets to be speaker, is that what you're saying?"

Huebsch rejected the suggestion and said he's committed to finishing the budget.

"The only danger I have of losing my speakership is if the Democrats take over the Assembly, and that's not going to happen in the next two weeks. I guarantee that," Huebsch said.

Check the PM Update for audio from today's news conferences.

Gov. Jim Doyle said a partial government shutdown "may well be necessary" if lawmakers can't reach a deal on the budget during a press conference this afternoon in his office at the State Capitol.

"And until Assembly members, Republican Assembly legislators do their job, the threat of a government shutdown remains very real," Doyle said.

Doyle refused to give details of a possible shutdown, including what departments or services would be affected. But he has spoken with his cabinet about the possiblity and is working "day and night" on how to deal with it.

"I don't want to be scaring people unnecessarily," Doyle explained.

Doyle said a possible shutdown would occur in the "next month or two" without a budget deal. Pressed for details, Doyle would only say he would not totally shutdown the prison system. He instead laid out what he said were the possible impacts of no budget deal.

Assembly Speaker Mike Huebsch, R-West Salem, called the governor's warning a "doomsday scenario" and said the government doesn't need to shutdown without a new budget.

Huebsch said that the state can continue to operate under last biennium's budget and Wisconsin taxpayers will have a "healthy skepticism" if Doyle orders a partial government shutdown, should a new budget continue to be delayed.

"Taxpayers are going to be asking 'Where are you spending my money? We're the eighth highest taxed state in the country,'" Huebsch said.

Huebsch did say that he believes a budget will be passed.

Huebsch said Doyle did tell him that he would be briefed in the upcoming days about the governor's plan to break the budget impasse. But Huebsch said Doyle did not tell him about a partial government shutdown.

Check the PM Update for audio from Doyle's news conference.

Assembly Speaker Mike Huebsch said following last night's rejection of the revised budget bill that it's "back to the drawing board" on a budget compromise, and he said he'd like to continue to negotiate with Gov. Doyle.

Huebsch, R-West Salem, said he'd like Democrats to reconsider the proposal Republicans put on the bargaining table prior to the govenor's call for a special session.

"We had about a $600 million increase in spending, but it funded a lot of the areas the governor wanted - schools, corrections, the university, financial aid. Those are the areas I believe we were able to fund without the huge tax increases," he said. "That's where I'm hoping we'll be able to start again soon."

Though he refused to call it a bottom line, Huebsch said he would first like to see the Senate pass the separate school funding bill AB 506.

"If they want to change the date on that from Oct. 15 to later, fine. I'll go with that. But take up that bill," he said.

A tax on hospitals proposed by Doyle will not pass through the Assembly in any form, Huebsch said. But he said there may be a solution.

"We don't need to tax hospitals to provide that (MA reimbursement) money," Huebsch said. "We can simply take dollars that are available to us - even through a cigarette tax, if you wish, and direct that to the hospitals. The federal government will match that money as well."

Listen to the Huebsch interview here.

Rep. Brett Davis, the only Republican who voted for the revised budget bill, said in a statement the governor's revised budget was not perfect, but it represented a compromise that a majority of his constituents would support.

Davis also called on fellow legislators to move the state forward.

"I've learned that when you're working on a nearly $58 billion budget bill with 132 other elected officials with strong opinions, you are not always going to get your way. It doesn't mean you have to give in, but there is a place for true compromise and it's time," said Davis.

Read Davis' statement here.

Assembly Speaker Mike Huebsch sent an email to all legislators this morning seeking signatures for a petition calling for an extraordinary petition to take up AB 506, the school funding bill, and AB 507, which funds local government aids.

Spokesman John Murray said the Assembly Speaker will be back in the Capitol this morning and ready to continue budget negotiations with Doyle and the Senate Dems.

See the email here.

Assembly Speaker Mike Huebsch, R-West Salem, said he will continue to negotiate with Gov. Doyle a compromise that can pass the Assembly with an agreement on taxes and spending.

"I believe we can get to middle ground if there is truly a desire to achieve a compromise. Middle ground is halfway, there's true give and take on both sides," Huebsch told WisPolitics.

See more in tomorrow's WisPolitics News Summary.

Gov. Jim Doyle's statement on the Assembly rejection of his revised budget:

"Extreme elements of the Republican Assembly have again won out by not supporting this compromise. Under the Constitution, it is the Legislature's job to pass a budget, and for nearly nine months they have failed to do it.

"They have failed once again and do not seem to have any plan on how to meet their duty. The only budget the Republican Assembly has passed slashes health care, education, and public safety, and I will not let that happen.

"Lawmakers have created a fiscal nightmare for this state. The cost to operate school buses, pay heating bills, and maintain roads has gone up, and lawmakers refuse to deal with it. The state is spending more than we are taking in, and we will be unable to fund essential services that protect the health and safety of our citizens. The people of this state count on their legislators to make the tough choices necessary to lead this state, and they have failed.

"The Legislature's failure has real and far reaching consequences for families and businesses in this state. In the coming weeks, all across the state, homeowners will see an increase in their property taxes because the Legislature has failed to do its job.

"I hope that lawmakers get the message now - we are nearing an emergency."

The Assembly abruptly adjourned without taking up the transportation budget passed earlier by the Senate.

Democrats howled at the quick adjournment, requesting a roll call on the vote to adjourn. For a few minutes the Dems refused to leave the chamber and it appeared there might be a sit-in.

Rep. Tom Nelson, D-Kaukauna, loudly read a statement as Republicans were leaving the house.

"Some of us voted no, some of us voted yes tonight. We still do not have a budget. Our job is not done tonight.

"To leave right now is like showing up for work and punching out before your shift ends. Our shift is not over. I requested a roll cal vote so that the people of Wisconsin know who's serious about getting this job done. Who wants to punch out early, and who wants to stay and get the job done," Nelson said.

The vote is 44-53.

Republican Brett Davis voted yes. Dems Sheldon Wasserman and Amy Sue Vruwink voted no. Dems Terese Berceau, who was absent, and Bob Ziegelbauer were paired - Berceau an aye and Ziegelbauer a nay.

See the roll call here.

Rep. Huebsch said there are two reasons the state doesn't have a new budget: taxes and spending.

He said Republicans and Democrats will vote against "the liberal tax increase budget the governor's" sent them.

He said meanwhile, the state will continue to operate under last years' budget.

"A lot of families in this state are doing the same thing (living under last year's budget)," the West Salem Republican said. "Many of you say that government should never have to do that."

Please excuse the lack of posts. There were problems with Blogger, but they seem to be corrected now. Speaker Mike Huebsch is set to speak shortly, and a vote should follow soon after.

Rep. Dean Kaufert, R-Neenah, said he can't support the bill because of the raids and tax increases that make it "too high a price tag for the citizens of this state."

While there's some good stuff in the budget, he acknowledged, "most of it is political gotcha and not about the citizens of the state."

Rep. Marlin Schneider, D-Wisconsin Rapids, made the most dire prediction yet.

"Without a budget, I'm going to tell you, there are people that are going to die," he said, referring to those who will have government assistance reduced.

After Dems intimated that Republican leadership was shaky, Assembly Majority Leader Jeff Fitzgerald, R-Horicon, said there's no crisis.

He said the governor "threatened" to take 10 votes out of the Assembly Republican caucus. That's not going to happen, Fitzgerald said.

"Leadership's solid over here," he said. "You will see this bill fail again."

The state should be able to live on the $1.25 billion in new growth, but the governor and Democrats want to tax another $1.25 billion, Fitzgerald said. "We can't afford any more," he said. "And the governor's finding that out."

As his brother, Scott, did in the Senate this morning, Fitzgerald criticized Doyle for not being engaged in the process, citing his trade mission to China during the conference committee.

Rep. Pocan challenged Republican assertions that the tax increases included in the budget - estimated at $1.1 billion - will result in a $700 tax hike for every family of four.

He argued the targeted increases won't have an impact on most residents.

"Do you have 5-year-old smokers in your district? I don't think so," he said.

Pocan said the only individuals who may feel the tax hikes would be "an oil executive who smokes three packs a day and is under GPS supervision."

Rep. Jon Richards, D-Milwaukee, said the budget is delayed because Republicans "are more interested in grandstanding than in getting the job done."

Rep. Spencer Black, D-Madison, said the initial embarrassment of not passing a budget has turned into a "disgrace."

Not on the budget bill.

It was when Rep. Mark Pocan, D-Madison, announced that Rep. Robin Vos, R-Racine, has become engaged. There was bipartisan applause.

Kicking off the special Assembly session, Assembly Minority Leader Jim Kreuser, D-Kenosha, said he's ready to get a budget passed.

"Mr. Speaker, let me help you pass the budget," he said.

"I never said once I would hang you up. You need 10 votes? We can do that," Kreuser said.

Kreuser said he can offer votes from two-thirds, three-quarters, "maybe more" of his members. But Kreuser said he's not confident a budget can be passed tonight because "the tail is wagging the dog" in the Assembly GOP caucus, and more than 20 Assembly Republicans signed a no tax increase pledge.

"I hope you don't obstruct this budget from being passed," Kreuser said.

Still some stragglers making their way. Should be underway in minutes.

The Assembly will be back in session at 6:30.

The Department of Public Instruction certified general equalization aid to school districts by today's statutory deadline. As promised, State Superintendent Libby Burmaster certified aid amounts using last year's state aid levels.

"While I wish it wasn't so, using last year's figures means that most school districts will be receiving less in state aid this year than if the Legislature had reached a budget agreement," Burmaster said in a statement. "Many local school boards will now be making difficult decisions on whether to cut programs and staff or to raise local property taxes or to enact some combination of these measures."

Using last year's totals means DPI certified $4,722,745,900 for schools, which is $79.3 million less than the amount approved by the Joint Finance Committee according to the press release. While the overall number remains the same, DPI spokesman Patrick Gasper said school districts won't necessarily get the same state aid as they did last year.

Gasper said the certification numbers are set, and that even with a new state budget, lawmakers must alter this year's process to avoid program cuts or property tax hikes.

See Burmaster's statement here.

See the 2007-08 October 15 General Aid Certification reports.

The Department of Administration released today its annual fiscal report for the fiscal year ending June 30 on the state's financial data.

The report displays major sources of revenues and major categories of expenditures for the General Fund and other funds compared to last fiscal year.

The basics:
- General-purpose revenue taxes were $12.618 billion this fiscal year compared to $12.030 billion last year.
- This increase was $75.4 million higher than the budget bill summary of $12.543 billion
- General-purpose revenue expenditures, excluding fund transfers, were $13.105 billion this fiscal year compared to $12.385 billion last year.

View the document here

View the 75-page appendix here

Assembly Republicans are ready to roll, but the Democrats remain in caucus.

Gov. Doyle dropped by the Dem caucus earlier to talk about "the importance of passing a budget," said spokesman Matt Canter.

According to an analysis by the Legislative Fiscal Bureau, the budget approved by the Senate earlier today collects virtually the same amount in taxes and fees as the just more than $100 million less than the budget originally proposed by Gov. Jim Doyle's.

See the memo here.

18-14 again.

See an LFB memo on the bill transportation here.

On a partisan 18-14 vote. It's immediately messaged to the Assembly.

Now they'll take up the Transpo funding package.

Sen. Joe Leibham, R-Sheboygan, said it was a "disgrace" that the Senate is being asked to vote on a 1,625-page, nearly $60 billion budget bill that was delivered to their desk just over five hours ago.

"I have to express concern over the process," he said.

The bill empowers government in entirely new ways and spends taxpayer money to do so, "and we don't even understand it," Leibham said.

He also raised concern over new provisions added by Gov. Doyle to curry favor from Assembly Republicans, calling them "little pork projects."

Sen. Robson said there's nothing new in the massive budget bill. She said it's very similar to the bill passed by the body in June.

After nearly 3 1/2 hours of debate, the Senate has taken its first vote of the day. The Senate tabled the sub amendment to fund schools and local government aids separately. The vote 18-14, with all Democrats voting for tabling, and all Republicans voting against. Senate Minority Leader Fitzgerald left early today due to soreness in his injured leg.

Sen. Jeff Plale, D-South Milwaukee, marveled at the political chicanery that goes on in our neighbor to the south, but says the Dairy State is catching up.

He said the machinations in Springfield, Ill., "make us look like a bunch of pikers." But the maneuvers during this budget process are eroding faith in Wisconsin's Legislature.

"It's become a pox on all your houses," he said, adding that lawmakers "look like a bunch of losers."

Plale said passing a separate school funding bill doesn't solve much. "It's like throwing a bow tie on a cow pie," he said.

Sen. Roessler ripped the proposed $175 Patients Compensation Fund Transfer, and urged passage of the school funding bill.

Sen. Erpenbach said agencies like the UW System and Department of Corrections are preparing for "financial armageddon" and said Assembly Republicans won't vote for the budget because they are afraid of being recalled.

Sen. Kanavas said no one is opposing the budget because of personal animosity, and being in opposition isn't due to a "hissy fit." Rather, it's an "honest disagreement" about what increasing revenue to the amount proposed means to the future of the state.

Sen. Jauch said failing to pass a budget is destroying the public's confidence in the Legislature, and said "people will be left with a bitter taste in their mouth because of the shenanigans some have played."

A lack of session days this year has obviously left Sen. Mike Ellis a lot to talk about, and he delivered a 22 minute speech on various proposals in the budget, bringing laughs from is colleagues on more than one occasion.

Among Ellis' antics:

* He hopped in the lap of Sen. Luther Olsen, after Senate President Risser asked him to turn and address his comments to the chair.

* He blasted the revenue increases in Doyle's revised budget, including a $52 million increase in UW tuition, a $33 million nursing home bed tax increase, a tipping fee increase of $27 million, and the $450 million cig tax increase and $418 million hospital tax. He said all of the increases hit middle class families hardest.

* He blamed the hospital tax, which is designed to capture $575 million in federal reimbursement for medical assistance patients, on the "morons from Washington in both political parties" who can't figure out how to fund MA.

* He called Doyle's oil franchise fee as "that goofy oil tax thing" and said he's tired of people accusing him of protecting oil companies for opposing it. "I pay the same rotten high prices as you do, Mr. President, when you're not riding your bike," he said.

The state will have a difficult time trying to isolate gas price increases to ensure the fee isn't turned back on customers. He said the oil companies will disguise it by blaming increases on "some earthquake in Dubai."

* Ellis lamented the state's business tax climate, and cited the Miller-Coors merger and what it could mean to Wisconsin.

"Where will they be housed in Milwaukee, Wisconsin, or Boulder, Colorado," he said.

He said the budget and the struggle surrounding it is about the battle between the private sector and the growth of government.

"I will not support this budget not because I'm mad at anyone," he said.

"As we grow government, we recede jobs in this state," he said. "That's not the legacy I want to leave."

* At the conclusion, Ellis apologized for going on longer than he expected, but said if anyone would like a transcript, he can make one available.

Sen. Russ Decker, D-Weston, rose next and said he had planned to wish Sen. Fitzgerald a speedy recovery from his motorcycle accident injuries. "But after the length of that last speech, he's probably fully healed by now," Decker quipped.

Sen. Alberta Darling, R-River Hills, said state taxpayers can't afford the 8 percent spending increase included in the revised budget, and urged passage of the school funding bill.

She said Senators shouldn't be fooled that if they don't pass a budget that includes an 8 percent spending increase that they aren't doing their job.

"A bad budget isn't better than no budget at all," she exclaimed.

Sen. Robson said Darling's speech "might have been good for April or May, but there is a compromise." She listed all the positions that had been agreed to, and said the difference remains in the amount to increase the cig tax and the hospital assessment. She said the Assembly and Senate are about $41 million apart.

The Assembly came in briefly at about 1:15 p.m. before recessing to partisan caucuses. The revised budget bill, if approved by the Senate as expected, will be messaged to the Assembly following the Senate vote.

Sen. Fitzgerald, returning to the Capitol for the first time since his motorcycle accident, urged the Senate to pass the school funding and local government aids bill passed by the Assembly last month.

The governor's revised budget, he said, is dead when it hits the Assembly but the Senate can pass the education funding bill and head off a $600 million property tax increase.

"This ain't going anywhere," he said, referring to Doyle's bill. "The only thing we can do is pass the Assembly bill."

Sen. Robson said if Republicans want to take care of school funding, they should vote for the revised Doyle budget before them because it includes the same funding amount, along with money to close the achievement gap in Milwaukee schools and money for rural districts.

Fitzgerald also criticized Doyle for not being "engaged" in the budget process, citing his trade trip to China, and the governor's "Chicken Little" cabinet warning of the dire consequences of not passing a budget.

When the governor introduced his budget in February, Fitzgerald said he could see the day coming when Doyle would have to "retreat" and introduce a more moderate budget. He said the gap between the governor's priorities and what could pass the Assembly Republican caucus was just too wide.

"I knew eventually this day would come," he said.

"Let's put that on the governor's desk this afternoon. He can sign it, we can claim victory," Senate Minority Leader Scott Fitzgerald R-Juneau, said.

Quoting a line from an old Kenny Rogers song, Senate Majority Leader Judy Robson, D-Beloit, said it's time to compromise and pass a budget.

"You've got to know when to hold 'em and when to fold 'em," she said.

Robson said the revised bill offered by Gov. Doyle "isn't perfect," and Democrats haven't gotten all they wanted in the bill, but it's time to "rise above the fray."

"We need to compromise. Wisconsin needs a budget," she said.

In a letter to legislators sent Friday, Milwaukee Mayor Tom Barrett warns that the proposal would hinder the ability of Wisconsin cities to deliver services and could result in increased local taxes.

The City of Milwaukee would see $7.3 million less in aid compared to the Senate version of the budget if Gov. Jim Doyle's compromise budget is approved today, the city's budget director has found.

This comes from a reduction in a number of community aids in addition to Doyle's proposal to keep shared revenue flat.

See Barrett's letter to Milwaukee legislators here.

See Barrett's press release here.

See a memo prepared by budget and management director Mark Nicolini here.

The Senate convened and quickly adjourned for a partisan caucus until 1 p.m.

Senate Minority Leader Scott Fitzgerald, R-Juneau, blasted Gov. Doyle in a press release this morning, saying in a press release this morning that the compromise budget proposal "is anything but."

See the press release here.

Fitzgerald, who was injured in a motorcycle accident earlier this month, is in the Capitol today and will be on the floor when the Senate convenes in a few minutes.

A transportation funding packaged closely following Gov. Jim Doyle's proposal will be offered on the floor today by Senate Democrats. Doyle has removed transportation from his revised budget bill, intending to take it up at a later time, but Senate Dems say they will offer it as a way to bring the issue to a close.

The offer will include the oil franchise fee proposed by the governor and passed as part of the Senate budget. Assembly Republicans removed the proposal from their budget version, and it has been a sticking point in negotiations since.

In one departure from the governor's proposal, the version offered today will increase semi-truck registration by 10 percent.

The state Senate and state Assembly are due today to take up Gov. Jim Doyle's revised budget bill in a special session. The Senate will come to the floor at 11 a.m., and the Assembly at 1 p.m. Partisan caucuses are expected to push votes to later in the day.

Assembly Speaker Mike Huebsch, R-West Salem, says the Doyle bill will get an up or down vote, and neither Dems nor Republicans in the Assembly are expected to offer amendments. Huebsch staffers are clarifying that they have not drafted and will not introduce a bill mirroring the most recent Assembly offer made in budget negotiations with the Senate, despite statements made Friday.

Senate Democrats and Republicans will caucus at 10 this morning. Democrats aren't expected to offer amendments, while Republicans may try to bring ABs 506 and 507, the separate funding bills for schools and local government aids, to the floor.

Insiders predicted over the weekend that Doyle's compromise attempt would fail in the GOP-run Assembly, while the Dem-controlled Senate is expected to pass the bill.

See the special session bill prepared by the Legislative Fiscal Bureau here.

See it here.

Read about it at the Small Business Times.

Left-leaning One Wisconsin Now is offering residents a chance to tell Republican leaders to "Stop the Excuses" and pass a state budget.

The progressive group offers nine satirical excuses for why a new budget hasn't been passed, and encourages more submissions.

The press release and link to the site can be found here.

The Wisconsin Medical Society sent an email today to legislators restating the group's opposition to a proposed transfer from the Injured Patients and Families Compensation Fund.

The letter says even without the proposed $175 million transfer, the fund faces an $60 million deficit by 2008-09, and reminds lawmakers that the group is ready to fight the transfer in court.

See the letter here.

Sen. Neal Kedzie, R-Elkhorn, says his read of the revised budget bill details release by Gov. Jim Doyle shows 365 Senate positions to 97 Assembly positions. Democrats control the Senate, while Kedzie's fellow Republicans control the Assembly.

"Clearly, the art of compromise is lost on the Governor," said Kedzie in a press release. "I can't imagine the Assembly would accept such an offer, which may include as much as one billion dollars in tax increases."

In a press release following a closed caucus by the Senate Democrats, Majority Leader Judy Robson, D-Beloit, said they stand ready to pass Gov. Doyle's budget compromise bill.

"We're in agreement that this isn't perfect but that's the art of compromise; nobody gets everything they want. Senate Democrats know this budget is more than 100 days late and they're ready to go to the floor and show the leadership needed to break this impasse," Robson said.

See the press release here.

At the conclusion of the Assembly Republican caucus, Speaker Mike Huebsch, R-West Salem, said the Assembly will take up the revised budget from Gov. Jim Doyle.

Huebsch encouraged taxpayers to contact their legislators and tell them to "say no to Governor Doyle's tax hike."

"I'm looking forward to this proposal getting a vote in the Legislature. Every Representative and Senator will have the question in front of them: can the people of Wisconsin afford a budget that raises taxes by $1 billion?"

See Huebsch's statement here.

A coalition of nine hospitals and hospital systems sent out a memo to members of the Legislature, urging support for the hospital assessment in Gov. Jim Doyle's revised budget.

"The hospital assessment, in its most recent form as modified by the Administration following discussions with the Wisconsin Hospital Association, will result in significant improvement in Medicaid reimbursement rates," the memo says.

The Wisconsin Hospital Association was initially against the inclusion of the hospital assessment in the budget.

The memo later says the assessment is a "common sense provision that is a win for hospitals, our patients, employers, the state and Wisconsin taxpayers."

The memo said that the assessment exempts 59 critical access hospitals from the tax, that there would be a two-year sunset provision and that $284.2 million in increased Medicaid payments over the next two years will flow to the hospitals.

View the memo here

Gov. Jim Doyle's office released a comparison of the Senate and Assembly forms of the budget and his new revised budget bill.

See the document here.

Four Senate Republicans again today called for Senate Majority Leader Judy Robson, D-Beloit, to bring a bill that would set school aid numbers and aids to local governments at the level recommended by Gov. Jim Doyle before a deadline that will cement the figures next week.

The Republican-controlled Assembly passed AB 506 with bipartisan support last month, but leaders in the Dem-controlled Senate have refused to bring it to the floor. Sen. Ted Kanavas, R-Brookfield, said Democrats "will be blamed" for the resultant $600 million property tax increase.

Sen. Joe Leibham, R-Sheboygan, said Senate Republicans are ready to come to the floor today "or any day it takes" to take up the bill.

"Senator Robson really doesn't have any legitimate arguments not to take up the bills," Leibham said. "We're supporting the governor's numbers for public education. And the whole suggestion that we shouldn't be piecemealing the budget has been thrown aside by their ... suggestion that we now start to splinter the budget, taking transportation, for instance, out of the entire package.

"Well schools are as important, if not more important, than our roads and transportation budget."

Kanavas said the budget impasse is the product of Gov. Doyle not living up to his prior promise not to raise taxes.

"(Doyle) said, 'Going forward my mind will be open to every solution except one: We should not, we must not, and I will not raise taxes,'" Kanavas quoted from a paper listing Doyle's comments. "Well, that governor has gone on vacation, and it seems to be a permanent vacation because what's happened is every one of the budget proposals he's put forward ... includes a billion dollars in tax increase over where the Assembly Republicans were."

Sen. Carol Roessler, R-Oshkosh, ripped the "raid" of the Patients Compensation Fund that the governor's budget compromise bill is likely to include. She said the Legislature "beat back" Doyle's previous two attempts to transfer money from the account that is meant to provide compensation for malpractice victims.

"This is the number one recruitment tool that we have is lawsuit protection and protection for injured patients and their families that brings quality health care providers to the state of Wisconsin," she said. "This is not our money. This money does not belong to the residents of the state of Wisconsin. It belongs to injured patients."

She said the raid will raise the cost of health care, result in a lawsuit from physicians, and potentially bankrupt the fund by June 2008.

Sen. Glenn Grothman, R-West Bend, said the governor's call for a special session bypasses the legislative negotiation process and in essence breaks down those talks while lawmakers wait for Doyle's compromise bill.

"If the new offer contains these excessive tax increases we've talked about before or the excessive spending increases, we know that budget is a non-starter anyway," he said.

"Realistically if you introduce a whole new budget, and we don't know what's going to be in that budget until Monday - as a matter of fact who knows by the time Fiscal Bureau gets done with it we might not even know on Monday what's in that budget - you can't realistically expect that's going to pass.

"As a matter of fact, I sometimes wonder if Governor Doyle for whatever unusual reason doesn't want a budget," Grothman said, saying he's beginning to feel if there aren't realistic proposals from Dems, there might not be a budget at all.

Gov. Jim Doyle is in La Crosse and Eau Claire today talking about veterans' issues and the state budget.

"Our veterans have made the ultimate sacrifice, and we should not turn our backs on them," Doyle said in La Crosse this morning, according to a press release. "I believe there are Assembly Republicans that share our vision for veterans, want to make good on our promise, and will not stand in the way of a budget any longer. We need to keep our promise to veterans, and fully fund the cost of their tuition."

Milwaukee Mayor Tom Barrett called Gov. Jim Doyle's decision not to include an increase in shared revenue in the compromise budget bill a "major disappointment."

"It is mindboggling that at a time when cities are struggling to meet levy limits and public safety needs, State Government has proposed passing its budget by eliminating a modest 1.6% increase in state shared revenue," Barrett said in a statement. "For the twelfth consecutive year, local governments across Wisconsin have been shoved to the backseat by the State."

The Wisconsin Alliance of Cities compared 40 cities' shared revenue allocations from Doyle's original proposed budget to his new compromise budget bill.

"Putting city budgets together is more than academic exercise," Rich Eggleston of the Alliance said. "Forgoing that 1.8 percent in shared revenue is going to cause a lot of pain. ... You're talking about dozens of jobs on the line in some cities that perform services for the public."

See the comparison here.

Gov. Jim Doyle said today shared revenue payments would remain flat under the compromise budget he will introduce for consideration at a special legislative session Monday.

"There will not be an increase in shared revenue, which I very much regret," Doyle said during a question-and-answer session at UW-Milwaukee, adding that the proposal won't have "the draconian cuts that the Republican Assembly was going to impose on the counties and cities in shared revenue," either.

"It will bring us back to even, which isn't good enough in my opinion," Doyle said, noting that he understands "it's time for compromise now."

Meanwhile, Doyle administration officials were reaching out to legislators to provide information about the compromise bill prior to tomorrow's Assembly Republican caucus. Senate Democrats will also caucus tomorrow.

The administration sent an outline to lawmakers detailing some of the proposals that will be included in the governor's new budget proposal.

It includes a $25 million cut to UW System funding from the governor's original proposal, full funding for the UW Growth Agenda and $140 million in cuts to state government operations.

See the memo here.

Listen to audio of Doyle's press conference here.

Listen to a Q&A with reporters here.

Also, find audio of press conferences yesterday with Assembly Speaker Mike Huebsch and Senate Majority Leader Judy Robson at the WisPolitics audio page.

Saying they rely on "accounting gimmicks and significant increases in taxes and raids on segregated funds," Rep. Steve Nass, R-Whitewater, says he will not vote for either Assembly Speaker Mike Huebsch's or Gov. Jim Doyle's budget plan.

"The problem in Wisconsin is government spending. If the partisan leaders refuse to protect middle-class taxpayers, then the fiscally conservative members of the legislature must block any tax increases," Nass said.

See Nass' press release here.

The state AFL-CIO has sent an email to members asking them to turn out next Wednesday for a counter-demonstration to the planned Americans for Prosperity rally planned at the Capitol.

"We are organizing a "counter-demonstration" that needs to bring out many times more than those who want to tear down public services," reads the letter.

The rally is planned for 10 a.m. to 2 p.m., but members who can't attend for the entire event are encouraged to show up over the noon hour.

The AFP rally is set to start at noon.

The LFB has prepared a memo comparing the latest Assembly Republican offer to the budget recommendations of Gov. Jim Doyle.

See the memo here.

Other details of the Assembly GOP offer, according to a Republican source:

* In addition to matching the funding level recommended by Doyle in his budget, the Assembly offer also doubles funding allocated to the UW System from the amount originally allocated in the Assembly budget. Under an agreement with the Doyle Administration $50 million will be lapsed into the UW System, making the Assembly offer about $7 million less than the amount targeted for the UW under Doyle's original budget.

* The Assembly offer funds the expansion of Family Care to the level agreed upon by the Joint Finance Committee, and funds Doyle's proposed BadgerCare Plus expansion. It does not include the hospital assessment proposed by Doyle.

* Base level funding is restored for the Wisconsin Technical College System, lapses a total of $1 million, and provides $1 million for Training Program Grants.

* Funding of Wisconsin Shares is increased $46 million above Doyle's requested level.

* All shared revenue cuts from the Assembly Republican budget are restored, and the Homestead Tax Credit is restored to current law.

* Funding cuts to Corrections are restored except for a $4.2 million reduction in administrative costs agreed to by Senate Dems.

* Compensation reserves reductions are restored.

* All funding for public broadcasting is restored and a 4 percent increase is provided in the first year for all higher education grants, with an increase of about 10 percent in the second year and an additional 4 percent increase for grants to technical schools and private colleges.

* The $65 million statutory balance is restored.

* An additional $24 million in revenue is provided for designation by the Doyle Administration for priorities not funded in the Assembly offer.

Gov. Doyle's appointee to head up the Department of Natural Resources, Matt Frank, said that not having a budget would be "devastating" for the DNR.

Frank said he's most concerned that some members of the Legislature believe that the state could operate without a budget. Frank said it would lead to a 12 percent staff reduction, delay people and industry seeking air and water permits and cut the governor's proposed funding for non-point pollution initiatives.

Frank also said having no budget would affect the DNR's bonding programs, including a program for communities to clean up drinking water.

"There are over 100 municipalities around the state that are lined up to take part in this bonding program so they can clean up their water ... and they aren't going to be able to do that," Frank said.

Frank added no budget would impact all services the DNR provides, including getting licenses, using service centers and state park operations.

Frank made the comments after a Senate Committee on Environment and Natural Resources meeting where the committee held a public hearing for his nomination.

Listen to the interview here.

--By Matt Dolbey

Senate Majority Leader Judy Robson said the special session called for by Gov. Doyle was brought on by an Assembly Republican caucus that doesn't want a new state budget.

"By not allowing their negotiating team to compromise, Assembly Republicans have abdicated their responsibility of leadership," Robson said. "They have left an indelible, black historic mark on the budget process that affects every resident of this state."

"This budget is 100 days late because Assembly Republicans signaled all the way back in April that they had no interest in doing a state budget," she said. "It's October and some Republicans are still applauding and celebrating this embarrassing stalemate."

She said Senate Dems have been flexible in a number of areas: offering $500 million in spending cuts in their latest offer, taking Healthy Wisconsin off the table, taking the real estate transfer fee of the table, and other provisions.

"The response from Republican leadership to our overtures has been nothing but political posturing and delay. The silence is deafening," she said.

Robson said the Dems are willing to continue negotiations with Huebsch and the Republicans, but will be on the floor Monday with the compromise bill if there is not significant progress in those negotiations.

Some of the reaction to the special session announcement:

Sen. Robson: Statement: Special session on budget

Sen. Erpenbach: Statement on Governor's call of special session for state budget

Sen. Jauch: Statement on Governor Doyle's call for special session

Sen. Fitzgerald: Governor abandons budget negotiations

Sen. Kanavas: Statement on Democrats' 11th hour assault on taxpayers

Rep. Huebsch: Surprised and disappointed in Gov. Doyle walking away from budget talks

Rep. Fitzgerald: Doyle to pass his budget, again

Rep. Kreuser: Statement on special session announcement

Rep. Pocan: Statement on budget special session

Rep. Black: Applauds Governor's special session

Assembly Speaker Mike Huebsch said Assembly Republicans are "surprised and disappointed by" Gov. Jim Doyle's announcement today that he will call a special session to try to break the budget deadlock.

"The fact is over the last couple of weeks we have been working to try and make progress with the governor, and with the Senate Democrats as to resolving the state budget," Huebsch said.

Huebsch said the governor "is now walking away from this negotiation and basically laying down an ultimatum. It is not the way that you negotiate to try and get to resolution, but it is unforunately the direction the governor has chosen to go today."

Huebsch indicated that he will abide by the call for the special session, but didn't sound committed to bringing Doyle's budget compromise to the floor.

"As far as taking that buget to the floor, that is to be resolved mainly because I have not yet seen what the governor is going to try to introduce," he said.

Huebsch said the latest Republican offer, made yesterday, includes increased K-12 funding, a 14 percent financial aid increase for UW System students, restoration of the Homestead Tax Credit, restoration of the compensation reserve fund, more funding for the UW System, restoration of cuts to shared revenue, and restoration of cuts to the Department of Corrections. The increased funding would be paid for by a 75-cent increase in the per pack tax on cigarettes, and a transfer from the Patients Compensation Fund of between $100 million and $175 million, Huebsch said.

Huebsch said he hopes to continue negotiating to reach a legislative budget agreement before Monday. He said the offer the governor will provide, if it is identical to what was placed on the table last Friday, will include $1 billion increases in taxes and spending over levels included in the Republican-penned Assembly budget.

The compromise bill Gov. Jim Doyle presents to legislators later this week will not include a change in the school aids certification date, according to spokesman Matt Canter.

By state statute, on Oct. 15 DPI Supt. Libby Burmaster must send to school districts figures indicating the amount of equalization aids funding the state will provide. Doyle had suggested that date could be changed by the Legislature, but he will not provide that change in his bill.

"If they pass that bill, they may be able to address the problem they've created," Canter said.

The compromise bill will include a number of provisions that have been agreed to in negotiations, according to Canter. The bill should be available before the end of the week, he said.

"Everyone knows Speaker Huebsch offered a cigarette tax as well as a transfer from the Patients Compensation Fund," Canter said.

"The governor called the leaders to negotiations to make compromises and come to an agreement. Both sides made compromises, and the governor thought they had made progress, and then Speaker Huebsch backed away," Canter said.

The bill will also include items such as tobacco control grants, funding for the UW system, financial aid for college students, and more funding for Milwaukee.

Canter said if legislators refuse to take up the compromise bill or refuse the special session, "Then they're refusing to do their job.

"It's their job to pass a budget. It's their legal obligation to pass a budget, more interested in scoring political points than doing what's best for Wisconsin."

View Gov. Jim Doyle's prepared remarks announcing the special session of a compromise budget bill here.

Gov. Jim Doyle said at a press conference this morning that the transportation budget will not be part of the compromise bill he will send to legislators for the special session to break the budget stalemate.

"We'll put that fight off for a week or two," Doyle said.

According to Sen. Robson spokesman Josh Wescott, the Senate will answer Gov. Doyle's call for a special session if there isn't budget agreement soon.

"Unless we see willingness in the next couple of days from the current Republican budget conferees to get serious about getting a budget done, we have 18 Senate Democrats ready to go to the floor to get this budget done."

This release is fresh from the governor's office:

MADISON - Governor Jim Doyle today announced he will call the full Legislature into Special Session on a compromise budget bill on Monday, October 15. The Wisconsin Legislature is the only Legislature in the country that has failed to pass a budget.

"Whenever both sides are close to an agreement, extreme voices in the Republican caucus let out a howl and the leaders shy away." Governor Doyle said. "If the Legislature has not come to an agreement by Monday, then I expect both houses to pass this compromise bill - because Wisconsin families cannot afford to wait any longer. Every additional day that the Republican leaders play politics and ignore their responsibility, real people suffer. It is time Speaker Huebsch and extreme Republicans put partisan interests aside and do what's best for Wisconsin."

As part of the Special Session, the Governor will introduce a new compromise budget bill that will reflect exactly where negotiations were before Republican leaders made clear they never really wanted a budget. The bill will cut spending by $430 million and eliminate $300 million of new revenue.

The compromise bill will remove all the non-fiscal policy items in both the Assembly and the Senate versions that were not agreed to by both sides. It will fund Wisconsin's priorities and cut taxes for middle class families. It will ensure quality education for our schools, provide a new investment in our universities, and ensure health care access to 98 percent of Wisconsin citizens.

After weeks of give and take, there was progress on both sides as they moved toward an agreement. Senate Democrats were willing to give up their health plan, cut $430 million in spending, and take the real estate transfer fee and combined reporting off the table. The Assembly Republicans were willing to accept the $1.25 tobacco tax, back away from their massive cuts to public schools, and drop some of their other draconian cuts as well. We thought they were making progress.

Yet whenever negotiations got to a point where an agreement could easily be reached, extreme voices in the Republican caucus let out a howl and the leaders shy away. Now they've backed away even farther. They are no longer willing to accept a $1.25 cigarette tax and are reviving their extreme cuts to Wisconsin's priorities.

Extreme Republicans still want to cut the university by $60 million, slash financial aid by $20 million, cut aid to veterans by another $6.5 million, and eliminate our new efforts to reduce smoking in Wisconsin. The Governor wants to put this state on a permanent path of fiscal stability, but extreme Republicans are playing politics with our children's future.

For months the Republicans made no movement. Finally, after coming out publicly in support of a $1.25 cigarette, Speaker Huebsch has now sided with the big tobacco companies, and backed away from that position.

Extreme Republicans insist on cutting the university by $60 million, slash financial aid by $20 million, cut aid to veterans by another $6.5 million, and eliminate our new efforts to reduce smoking in Wisconsin. We need to put this state on a permanent path of fiscal stability, but extreme Republicans are playing politics with our children's future. These are the wrong priorities.

The state has operated without a new budget since July 1. The Legislature's failure to pass a budget is affecting tax payers, students, and residents across the state. Currently, 5,544 university students are on waiting lists for financial aid. The expansion of the Sand Ridge Secure Treatment Center for sex offenders may be delayed without a budget, and dozens of important road projects may be postponed or cancelled.

Without a budget, university students could face a tuition surcharge of over $800. If the Department of Public Instruction cannot use a new budget to determine aid levels by next Monday, local schools will be forced to either lay off teachers or raise property taxes.

At the Department of Corrections, a $370 million shortfall will create dangerous conditions for security officers and citizens by forcing modified lockdowns and preventing the state from using GPS technology to monitor child sex offenders. These and many other state programs are threatened by the lack of a new budget, and Wisconsin residents and families will suffer as a result. For these reasons, not passing a budget is not an option.

Republicans working on the overdue state budget met into the evening yesterday with LFB director Bob Lang to dissect the latest offer from Democrats.

Josh Wescott, spokesman for Senate Majority Leader Judy Robson, D-Beloit, said the package put on the table last Thursday by the Dems is not a final offer, but it "pretty much brings resolution to all the lightning rod items in the budget."

It wasn't clear this morning whether Robson and Assembly Speaker Mike Huebsch, R-West Salem, would meet today to continue talks. The two did not meet face-to-face yesterday, Wescott said.

Senate Minority Leader Scott Fitzgerald, one of the eight legislators on the budget conference committee, could be released from the hospital as soon as today or tomorrow as he recuperates from a motorcycle accident, a spokesman said.

Ryan Murray said Fitzgerald, R-Juneau, had a second surgery on his leg yesterday. Murray said Fitzgerald is not expected to have any more surgeries beyond the two already done. He said the senator hasn't discussed yet when he might be back in the Capitol.

State College Republicans have field a complaint with the U.S. Department of Education against UW-Madison for violating student privacy laws with this email sent to students last week.

See the Wisconsin College Republicans press release here.

See the letter to the U.S. Department of Education here.

See more on the story here.

The AFL-CIO says a letter released by WMC with a petition from 1,000 business executives who oppose inclusion of Healthy Wisconsin in the state budget is "baloney."

Sen. Neal Kedzie, R-Elkhorn, says Dems have switched from scare tactics to conspiracy theories.

See his press release here.

The Association of State Prosecutors said in a letter to Gov. Jim Doyle and legislative leaders today that a potential furlough of 100 prosecutors necessitated by the budget impasse couldn't come at a worse time.

"Not two months ago, the State Legislative Audit Bureau Audit of Prosecutors (2007) revealed the State is over 132 prosecutors short. An additional furlough of 100 prosecutors equates to more than 232 positions down; leaving approximately 240 prosecutors to handle the workload of 475," says the association in the letter.
"The current crisis, intensified by the potential furlough should frighten and shock the public. If the State does not allocate resources to adequately fund, and retain prosecutors, we will continue to lose experienced criminal prosecutors and our ability to convict defendants accused of serious crimes will be severely disadvantaged."

See the letter here.

See a letter DOA Secretary Morgan sent to prosecutors on Oct. 3 here.

Democrats negotiating the state budget have made more concessions to try to reach a budget agreement with Republicans, including dropping their plan to include combined reporting, according to Josh Wescott, spokesman for Senate Majority Leader Judy Robson, D-Beloit.

In addition, the Dems have made $500 million in cuts to their spending plan and are considering passing a full budget separately from transportation, which would allow for more time to settle the debate over the oil franchise fee, he said.

"We could do transportation as a separate piece and not hold up the rest of the deal," he said. "That's certainly a scenario that's out there."

It was not known this morning whether Robson and Huebsch would be meeting today. Republican conferees were meeting with LFB director Bob Lang this morning to clarify the offers on the table.

Philip Morris is sending fliers to Wisconsinites with the caption "Your state senator voted to target smokers for higher taxes."

"The State Senate has singled out smokers for an unfair tax increase - and your State Senator went along, voting to raise taxes 160% ($12.50 a carton)," the flier says.

The flier has an image of the state Capitol with dollar bills raining down from the sky, later saying "tell your State Senator to stop this unfair tax increase while there is still time -- because smokers are voters too."

See the flier here.

A Legislative Fiscal Bureau memo indicates the two sides negotiating the budget agreement may be further apart than the guv and Senate Majority Judy Robson have indicated.

The LFB memo, analyzing the offer put on the table by Senate Democrats yesterday, shows that it contains $956 million more in taxes than the budget passed by the Assembly. Adding in departmental revenues, the gap between the revenues proposed in the Assembly budget and the offer by the Senate is $1.1 billion, the LFB memo states.

On the spending side, the Senate offer has appropriations exceeding the Assembly budget by $1.1 billion, according to the memo.

Assembly Speaker Mike Huebsch said in a memo to caucus members the LFB analysis shows "that the two houses and Governor Doyle are still far apart on the fundamental issues of taxes and spending," but added that he remains committed to working to find a resolution on a budget.

Robson spokesman Josh Wescott said the dollar amount reflected in the memo includes some policy areas where agreements have already been made, such as on the cigarette tax increase and the transfer from the Patients Compensation Fund. Republicans, though, continue to say no agreements have been reached on any aspect of the budget.

Doyle spokesman Canter said he hasn't seen the memo but indicated that it doesn't reflect what's going on at the bargaining table.

"The negotiators sitting at the table know that they are very close, only inches apart," Canter said. "Everybody party to those talks know they've come a long way and if there was the will to have an agreement, we'd have one now."

See the LFB memo here.

An e-mail sent today by the associate director of Student Financial Services at UW-Madison informing a financial aid recipient about a press conference by Gov. Jim Doyle at the Memorial Union Tuesday has drawn the ire of some Republicans.

The e-mail, from Michelle Curtis, identifies the student as someone who has received a Wisconsin Higher Education Grant in the past, but whose aid has been delayed due to the state budget impasse.

"The governor is looking for a few UW-Madison students who are WHEG-eligible for the 2007-08 year but who have not been awarded WHEG because they are 'wait-listed' due to the budget impasse. We were wondering if you were interested in participating in the press conference," Curtis writes in the letter.

Curtis also writes that the student is under no obligation to attend, and their financial aid package is not dependent on their participation.

John Lucas, a university spokesman, said the memo was sent to 33 students.

"We are advocating on behalf of our students and trying to give students an opportunity to advocate for themselves," Lucas said. "No student, if you carefully read this letter, would ever feel pressured to answer that e-mail or think their aid would be affected if they just wanted to hit delete."

Lucas said the university followed the guidelines of the Family Educational Rights and Privacy Act to protect student privacy. He would not say who directed Curtis to send the e-mail.

Doyle spokesman Matt Canter said he was unaware of the e-mail.

"The students who are on a waiting list for financial aid have a great uncertainty for what next semester holds, and have just as much at stake on the budget as anyone," Canter said.

See the e-mail here.

The e-mail caught the attention of conservative talker Charlie Sykes. See his blog post, in which he calls the email "stunning" here.

Some Capitol Dems are linking the continued reluctance by Republicans to reach a final agreement on the state budget to an ad campaign from Wisconsin Manufacturers and Commerce bashing the oil franchise fee and a Americans for Prosperity taxpayer rally set for the Capitol on Oct. 17.

Conspiracy-minded Dems point to those two events, and pronouncements earlier this week from GOP legislative leadership that a budget is highly unlikely before Oct. 15, as a sign of a coordinated stall effort.

"The GOP is clearly collaborating with the real folks who hold the purse strings and a national front organization that advocates for zero government so that a budget never passes in Wisconsin. The Republicans' attempt to strangle state government should be of great concern and needs to end," charged Rep. Mark Pocan, D-Madison, in a press release.

WMC spokesman Jim Pugh scoffed at the idea.

"That's a Capitol parlor game," he said. "We have a First Amendment right to talk about issues -- on our timeline and on nobody else's timeline."

Pugh said WMC's original TV ad buy is through Monday but may be extended. He said the decision to run ads is made "independent of partisan politics and in the interest of good public policy."

John Murray, spokesman for Assembly Speaker Mike Huebsch, also dismissed the chatter.

"There is no connection. The timing of the rally or ads really has no bearing on the current budget negotiations," Murray said. "These third-party groups are free to do whatever they want, whenever they want."

See Pocan's press release here.

Rep. Mark Pocan, D-Madison, wonders whether Republicans ever intended to pass a budget.

Pocan's release joins a slew of releases today from left-leaning groups and labor organizations slamming Assembly Republicans:

AFSCME: No more excuses for Big Oil – time to get the budget done

AFT-Wisconsin: Assembly Republicans take a bite out of Crime Lab

Citizen Action of Wisconsin: Wisconsin needs a state budget now that includes action on health care crisis

NARAL Pro-Choice Wisconsin: Assembly leadership sides with big oil over Wisconsin women & families

One Wisconsin Now: Huebsch urged to reject special interest call to protect big tobacco

SEIU: WI families lose while Assembly delays budget

Despite the Wisconsin Hospital Association Board of Directors announcing they will back off on their opposition to the hospital assessment proposed by Gov. Jim Doyle, Rep. Leah Vukmir, R-Wauwatosa, says she will not support the assessment and encourage her colleagues to continue opposing it.

The assessment is designed to attract some $285 million in federal dollars for Medicaid reimbursement.

In a call from the Americans for Prosperity "Defending the American Dream Summit" in Washington, D.C., Vukmir told WISN talk show host Vicky McKenna that the plan is bad public policy.

"Basically, this hospital tax is a sick tax," Vukmir said. "And it would mean that we're going to balance the budget on the backs of sick people in the state of Wisconsin; it's wrong."

"I won't be supporting it and I hope my colleagues join me in opposing it," she added.

Vukmir also used the opportunity to plug the grassroots efforts of AFP-Wisconsin, saying their actions have "energized the grassroots in Wisconsin and the people in the Legislature are standing up and listening."

Gov. Jim Doyle isn't ruling out any "responsible" option that could lead to a budget deal, including separating the transportation budget from the rest of the 2007-09 spending plan, spokesman Matt Canter said today.

"The governor believes we need to look at all responsible options for getting a budget agreement done now," Canter said. "There's precedent for this in many ways. (Transportation) is a separate budget with its own funding source, unlike the piecemeal budgeting that went on in the Assembly, which is spending money that's not paid for."

The governor is in internal meetings today in Madison and will be available to the legislators negotiating the budget when needed, Canter said.

Senate Majority Leader Judy Robson, D-Beloit, and Assembly Speaker Mike Huebsch, R-West Salem, will resume budget talks this morning.

Yesterday, the Wisconsin Hospital Association Board of Directors announced they were lifting their opposition to the hospital assessment proposed by Gov. Jim Doyle to capture more federal dollars for Medicaid payment reimbursement.

The development was seen by some as a major breakthrough in the budget stalemate, but Jim Bender, spokesman for Assembly Majority Leader Jeff Fitzgerald, R-Horicon, said the WHA announcement had no correlation to the ongoing legislative budget negotiations. Bender said there remain no agreements on any aspects of the budget.

Dem sources also indicate there may be reluctance to resurrect the assessment. Senate Majority Leader Judy Robson, D-Beloit, announced last week that she has offered to dispense with the assessment, which was included in the Senate budget but purged from the Assembly bill.

Meanwhile, GOP Sens. Rob Cowles and Mike Ellis are saying despite the WHA's change of heart, the hospital tax is still wrong.

A memo from Wisconsin Hospital Association president Steve Brenton says that early concerns with the hospital assessment were addressed, and explains why the group is changing course from its February decision to oppose the assessment.

"Over the past several weeks, statutory changes have been offered to the plan that, if enacted, will address many of the concerns we have consistently raised - in particular assuring that promised $285 million in Medicaid payment increases resulting from the tax, and the higher federal revenues it will draw down, can actually be delivered," WHA president Steve Brenton wrote in a letter to Gov. Jim Doyle and legislative leaders.

Doyle spokesman Matt Canter said the assessment was proposed because it will "leverage hundreds of millions" in federal dollars, and the administration worked closely with the WHA to iron out an agreeable plan. He said the assessment remains the only vehicle to provide hospitals rate increases.

"The governor welcomes the support of hospitals," Canter said. "Clearly this was a way to provide hospitals with the relief they sorely need."

Senate Democrats supported the plan and included it in their version of the budget, but Senate Majority Leader Judy Robson, D-Beloit, said last week they had offered to drop the plan to bring about a full budget agreement. Assembly Republicans pulled the assessment from their budget, branding it a "sick tax."

See the Brenton memo here.

Public safety will be jeopardized unless a new state budget is approved, Department of Corrections Secretary Rick Raemisch said today in a conference call with reporters.

"I've got about 25 yeas in criminal justice system, and I don't have a reputation for yelling the sky is falling," said Raemisch, a former GOP Dane County sheriff. "Obviously what we're looking at is tough decisions have to be made if we don't have a budget."

With the emphasis on the re-integration of inmates into society and a lack of funding to provide them with job training and anger management, "all we're going to do is let some angry individuals out on the street," Raemisch said. Most will re-offend and end up back in the prison system.

"And when that happens, there's a trail of victims," he said.

Raemisch said the state faces the possibility of having to void contracts with county jails that house 700 state inmates. That could happen as early as December, he said.

"We have to do something with those 700 inmates, (likely) bring them back into institutions already at capacity," he said.

Raemisch earlier prepared a memo for Administration Secretary Mike Morgan detailing impacts of no budget on the agency:

See the letter here.

The UW Board of Regents unanimously passed a resolution today calling on the Legislature to pass a budget that funds the UW System's inflationary costs and Growth Agenda.

Regent President Mark Bradley said that UW's efforts to secure funding levels set in the Senate budget are a state policy issue rather than a political issue. But with the continued budget stalemate, "we need to look at a contingency plan."

Without a budget in place, several chancellors indicated their campuses would experience class reductions and enrollment cuts as early as January. UW-Platteville Chancellor David Markee said his campus is looking at a 10 percent 12 percent reduction in the number of classes in the spring semester, along with a possible 10 percent reduction in enrollment for the 2008 freshman class.

"If no budget gets passed and we have to operate on last year's budget this year ... we're going to have to make some very draconian cuts this year," said UW System President Kevin Reilly.

The Regents amended the original resolution to include language emphasizing the potential consequences of a funding shortfall for low-income families.

"The policy message seems to have very broad support ... but what's happening in the Legislature now is not so much a policy discussion as it is a political process," Bradley said. "Who knows where we will come out?"

See a press release with a link to the revised resolution here.

The Wisconsin Hospital Association Board of Directors voted today to adopt a neutral position on the assessment proposed by Gov. Jim Doyle, according to Senate Dem sources.

"The decision of the Wisconsin Hospital Association to withdraw its opposition to the proposed hospital assessment in favor of a neutral stance is the right one," Sen. Bob Jauch, D-Poplar, said in a press release. "Their decision confirms what we have long understood: the hospital assessment will draw down significant federal dollars, provide substantial Medicaid rate increases to the vast majority of the state's hospitals and reward those hospitals that disproportionately serve our state's neediest and most vulnerable patients."

Senate Democrats supported the plan and included it in their version of the budget, but Senate Majority Leader Judy Robson, D-Beloit, said last week they had offered to drop the plan to bring about a full budget agreement.

See more in today's PM Update.

See Jauch's press release

The fight over a proposed $1.25 increase in the cigarette tax continues to heat up as lawmakers try to reach a deal on a state budget compromise.

The Wisconsin Merchants Federation argues in a release that the Illinois toll road system could be a big winner if Wisconsin jacks up the cigarette tax. Merchants President Chris Tackett says Wisconsin smokers would come out ahead by driving down to Illinois to pick up their smokes because the tax there is 98 cents a pack compared to the $2.02 it would be under Gov. Jim Doyle's proposal.

Meanwhile, the Save Lives, Save Money Coalition have sent lawmakers a memo arguing cigarette taxes are a reliable, stable source of revenue despite arguments from a Washington, D.C-based activist who says otherwise.

Anti-tax activist Grover Norquist sent Assembly Speaker Mike Huebsch, R-West Salem, a memo last week urging him to reconsider an offer to accept the proposed cigarette tax increase. He cites a study that found New York City lost $127 million in profits for small business and some 10,000 jobs when it raised the tobacco tax.

But Maureen Busalacchi from the SLSM coalition and Smokefree Wisconsin provided numbers she says show the tax has been "about the most reliable and predictable existing source of revenue" for the state. She also said Norquist neglected to mention the NYC study was paid for by the tobacco industry.

See the Merchants' release here.

Read the coalition documents here and here.

See Norquist's letter here.

UPDATE: Norquist and Busalacchi appeared on Wisconsin Public Radio this morning on the cigarette tax. Listen to the segment here.

Sen. Roger Breske, D-Eland, said in a press release that some folks are getting an early start on Halloween.

"The truth is that Republican legislators have been playing a trick, kicking and screaming at the budget negotiation table and refusing to compromise at the same time TV ads attacking Senate Democrats are being run," Breske notes. "These ads are paid for by the big business major lobbying group, WMC, and watching them is no treat."

See Breske's release here.

The Wisconsin Petroleum Council issued a press release today bashing Doyle's proposed oil franchise fee.

"Proponents of this tax continually have tried to convince the public and legislators that it won't be passed on at the pump," WPC executive director Erin Roth says in the release. "The reality is, 82% of Wisconsinites polled in a Wood Communications poll, don't believe what they are being told by supporters of this ill advised tax proposal. Who are they trying to fool?"

See the release here.

Legislative leaders did not meet yesterday to negotiate a resolution the state budget stalemate, but will get together today. A time for the meeting hasn't been finalized.

Senate Majority Leader Judy Robson and Assembly Speaker Mike Huebsch spent yesterday evaluating offers that are on the table and conferring with Doyle administration staff, according to their spokesmen.

Senate Dems had a caucus yesterday. Assembly Republicans will have a leadership meeting today as well.

Gov. Doyle will be in internal meetings today in the Capitol, discussing the budget and other issues with staff.

The Americans for Prosperity-Wisconsin hope to bring 300 to 500 people to the Capitol on Oct. 17 for a taxpayers rally.

AFP Wisconsin State Director Mark Block said the plans include bussing participants from half a dozen cities to Madison that day for a rally that will feature talk show hosts Vicki McKenna of Madison and Pat Snyder from Wausau, blogger Owen Robinson and state GOP Chair Reince Priebus. The group also hopes to attract a national speaker as well, Block said.

A pre-rally will be held at Madison's Esquire Club before moving to the Capitol from noon to 1 p.m.

See the AFP Web site here.

Gov. Jim Doyle joined Senate Dems in their caucus this morning, talking with and answering questions for them for about 45 minutes on the state budget.

According to Doyle spokesman Matt Canter, Doyle acknowledged the compromises Senate Dems have made, and the concessions they've made to drop budget items "they cared deeply about.

"But not having a budget is not an option and both sides need to continue to compromise in order to get a budget done," he said. "The governor told them now's the time to make decisions and come to agreement and pass a budget, and live to fight another day."

Canter said Doyle did not go into specific budget items, but he did walk away optimistic.

"The governor still believes if there is a will, we can get the work done in a matter of days, as long as the will is there to get a budget," Canter said. "The governor is concerned there still are Republicans saying the state doesn't need a budget. They're dead wrong."

The Wisconsin Medical Society yesterday threatened to sue the state if a transfer out of the Patients Compensation Fund is signed into law as part of a budget deal.

The group also announced it has retained attorney Thomas M. Pyper for a potential legal battle.

The transfer, which was included in Gov. Doyle's budget and the budget passed by the Senate, was removed from the Assembly budget. But the issue came to light again last week when Senate Majority Leader Judy Robson, D-Beloit, said Assembly Speaker Mike Huebsch, R-West Salem, agreed to a transfer, but not an amount. Huebsch has denied there is any agreement.

Earlier this year, the Medical Society had discussions with DOA about the possibility of spinning off the fund into a new entity that would protect it from potential transfers. Those discussions also included the possibility some money from the new arrangement could go to the state in exchange.

WMS lobbyist Mark Grapentine stressed those talks were only preliminary, the $175 million transfer the governor ultimately proposed would destabilize the fund and WMS is now prepared to for a fight.

See the WMS release here.

See a WMS letter from January to Doyle Administration officials about "reorganizing" the PCF here.

See an April letter from WMS saying "there is no deal" here.

* About 30,000 Wisconsin Public Television supporters received an e-mail yesterday urging them to contact legislators and ask them not to cut state aid for public broadcasting.

A similar letter was sent to supporters of Wisconsin Public Radio.

See the WPT letter here.

* And, the Legislative Fiscal Bureau estimates that passage of school funding bill AB 506 along with a cost-to-continue budget would result in a deficit $972 million deficit for the state by the end of the biennium, according to a memo prepared by the LFB.

The memo also estimates the impact of AB 506 and continued state funding under current law. Under that scenario, the state would have a net balance of $233 million at the end of the biennium.

See the LFB memo here.

Rep. Steve Nass, R-Whitewater, responded to a letter from a group of 32 Wisconsin business leaders with a letter of his own, including a petition signed by 1,000 business leaders opposing Senate Democrats' tax increases.

See Nass' letter here.

Also, Rep. Scott Suder, R-Abbotsford, responded to a press release yesterday from Rep. Jeff Smith, D-Eau Claire, which accused legislative Republicans of trying to have it both ways with the overdue state budget.

"Scott Suder is demonstrating true legislative double-speak," said Smith. "While Rep. Suder claims the Assembly's version of the budget that he voted for gives the Department of Corrections an 11 percent increase. However, at the same time, Rep. Suder is also part of the Assembly extremists that want no budget at all."

Suder responds, "While I understand that Jeff Smith has only been around the Capitol for a few months, you would think that he would at least have the sense to check his facts before he sends out a press release. For him to suggest that I somehow don’t want a state budget to pass the legislature this session is a complete lie."

A group of Assembly Democrats will introduce a bill that forces conference committee members to stay at the negotiating table - at the threat of arrest - until a budget is finished. The bill was announced at a Capitol press conference this morning.

Bill author Rep. Joe Parisi, D-Madison, said that conferees would be forced to participate in the meetings, using the Legislature's staff to find members if they are not at the meeting on time, and employ the county sheriff's office to bring them to the Capitol.

The so-called "Budget Deadline Enforcement Act" would make conferees to meet on a graduated timetable following the passage of the budget through the last house of the Legislature: conferees would have to work eight hours a day, Monday through Friday the first week after budget passage in the Legislature; work nine hours a day, Monday through Friday the second week; and work at least 10 hours a day, six days a week for every week following until the budget is passed.

If this measure had been law this year, the conference committee would have already met 72 times, according to Parisi.

"And that's why we need to force the committee that's actually responsible ... to do their job, and if not, be arrested until they get their job done," Rep. Mark Pocan, D-Madison, said

See the press release here.

--By Matt Dolbey

UPDATE: Assembly Speaker Mike Huebsch, R-West Salem, responded to the proposed deadlines, saying "The recent experience of other states has shown us that deadlines and shutdowns lead to more government spending, not less, and timetables force the Legislature to tax first and ask questions later."

Rep. Louis Molepske, D-Stevens Point, is circulating his "Budget Accountability Act" legislation for co-sponsorship.

The finer points, according to Molepske's press release:

* If no budget is in place by July 1st, a joint resolution will be required to allow the State to continue spending at the previous biennium's funding levels;

* "Essential services," which are those core governmental functions that deal with the health, safety and general welfare of the state, will be exempt from the
resolution requirement so citizens are not put at risk;

* In the event that a budget agreement is not reached by August 1st, all state
legislators' paychecks will be deferred until a budget is finalized. The August 1st
date is designed to allow for a reasonable amount of time for negotiations to take
place before pay-deferrals occur;

* If a budget is still not in place by September 1st, previous biennium spending will
end & government furloughs will begin (excluding essential services).

There's been coverage today of the proposal by Rep. Dean Kaufert, R-Neenah, and Rep. Louis Molepske, D-Stevens Point, to withold lawmaker pay until a budget is passed.

The idea is one of six Kaufert, a former chairman of the Joint Finance Committee, pennned for an op-ed piece that ran in his local newspaper, the Appleton Post Crescent, on Sept. 23. Here are the rest of his proposals:

* Pay and per diems would be withheld from legislators until a permanent budget is passed.

* All other legislative bills and proposals will be frozen until a budget resolution is passed. No bills will be allowed to be drafted, passed or have a public hearing.

* Pass language that takes non-fiscal policy out of the budget.

* Hold steady timelines requiring state agencies to submit their budgets by Sept. 15 of the prior year and that the governor must introduce his budget on the last Tuesday of January.

* Explore the possibility of moving the state's fiscal year end date back by one month to Aug. 1 in odd years.

* Adopt Assembly Bill 61/Senate Bill 25, which bans state elected officials from accepting political contributions during the budget process.

See Kaufert's full article here.

Senate Majority Leader Judy Robson, D-Beloit, and Assembly Speaker Mike Huebsch, R-West Salem, met until 9 p.m. last night as they attempt to iron out a budget agreement.

The two leaders will return to the bargaining table today, but a time has not been set.

Gov. Jim Doyle will be in Eau Claire today, meeting with senior citizens at the LE Phillips Senior Center and urging legislators to pass a budget.

Meanwhile, 32 business people from around the state sent a letter to the eight members of the conference committee, urging them to reject cuts to the UW System included in the Assembly version of the budget and to support the system's "Growth Agenda."

See the letter here.

Assembly Republicans are unified when it comes to keeping state spending at a rate taxpayers can afford, but there is a difference of opinion about what harm not passing a state budget could do, GOP state Rep. Brett Davis told WisPolitics in an interview yesterday.

Davis said the caucus stands solid against not handing Senate Democrats a "blank check."

"The differences in the caucus, perhaps, are the ramifications for and what will happen with no budget," said Davis, R-Oregon. "And if we don't have a budget, there's obviously some significant ramifications that happen, in my opinion, across the state. The governor's alluded to several of them. And I think there may be a difference of opinion as to whether or not we need a budget at all."

Davis, who represents a swing district and is regularly targeted by Dems, said what he hears most from his constituents is that legislators need to compromise. While many of his colleagues have signed various "no-tax" pledges, he said it's unlikely a budget would be passed without some new revenue uppers.

"I think the Senate has made it pretty clear that's not going to happen," he said.

David said Huebsch has done a good job of keeping the caucus informed and with the negotiations, but admitted the speaker will have a difficult time lining up Republican votes for the end product. He feels those votes can be delivered with the right package.

In the end, he said, passing a budget is a necessity.

"Let me just say that I want to do what I can to help to get the budget done as soon as possible," Davis said. "I feel the budget should have been done a couple months ago. I think there's been a lot of political rhetoric on both sides -- the Senate Democrats and on our side, the Republicans -- and I personally don't feel it does the state any good. It just isn't rocket science. We can sit down and be grown-ups about this and figure out a solution for it."

In an interview with WisPolitics last week, state Rep. Steve Nass, R-Whitewater, said lawmakers could dig in until after Christmas in an effort to defeat Dem tax proposals.

Listen to the interview with Davis here.

Davis also makes the case for taking action on the budget in this column released today.

A roundup of today's press releases on the state budget:

Sen. Erpenbach: Statement on Assembly Republican budget delay tactics

Sen. Hansen: GOP holds budget hostage for Big Oil

Sen. Kedzie: Taxpayers' savings exceed $3 billion

Rep. Davis: Statement responding to Senator John Erpenbach's budget comments

Rep. Smith: Assembly Republicans and Rep. Scott Suder demonstrate short-sighted thinking on passing a budget

Wisconsin Personal Services Association: Preserve vital long term care services

Madison Mayor Dave Cieslewicz said that not having a state budget passed is "very serious" and his annual city budget could change dramatically depending on the final version passed by the Legislature.

"If the Legislature doesn't do its work by mid-November, then we're going to have to pass a complete budget based on assumptions," Cieslewicz said.

Cieslewicz, who unveiled his Madison budget proposal today, repeatedly slammed the Legislature. He said he anticipates the budget will be passed by mid-November.

Cieslewicz also said "we need the Senate version of the budget," because the Assembly GOP version does not allow for the levy increase he has proposed, 5.8 percent, and would cut funds for municipal services.

-- By Matt Dolbey

After hearing Republican leaders contend that a final budget agreement was doubtful before Oct. 15, Senate Majority Leader Judy Robson, D-Beloit, issued a statement late yesterday saying there's no reason why it can't get done before then.

"The oil franchise fee is among the shrinking list of unresolved issues," she said. "Will Assembly Republicans hold the entire state budget hostage to protect the multi-billion dollar profits of the big oil companies?"

Robson and Assembly Speaker Mike Huebsch, R-West Salem, will meet again today at the Legislative Fiscal Bureau office to continue budget compromise talks.

See the Robson's statement here.

Rep. Jeff Fitzgerald, R-Horicon, said Robson is viewing the negotiations through "rose-colored glasses."

"There have been no accepted offers when it comes to taxes," Fitzgerald said in a press release this morning. "We are still more than $1.3 billion apart. Her claim that the gas tax is the only one outstanding is pure folly.

"There is a reason why October 15th is an unrealistic date to have the budget done – we are still far, far apart when it comes to taxes and spending. No matter the number of rejected offers, the status is the same. The Senate Democrats failed to pass AB 506 and AB 507. Property taxpayers will now bear the brunt of their inaction. They are looking for cover."

See Fitzgerald's press release here.

Americans for Tax Reform president Grover Norquist sent a letter today to Assembly Speaker Mike Huebsch urging him to reconsider accepting a $1.25 per pack tax increase.

Twenty-four Assembly members and six Senators have signed a "no-tax" pledge from the Americans for Tax Reform.

See the letter here.

Meanwhile, the Wisconsin Medical Society said they are ready to take the state to court if the budget contains a "raid" on the Injured Patients and Families Compensation Fund. Senate Majority Leader Judy Robson said last week that Huebsch had agreed to transferring money from the fund, but an amount hasn't been agreed to.

See the Medical Society release here.

Wisconsin Manufacturers & Commerce is launching a new 30-second TV ad tomorrow targeting Gov. Jim Doyle's proposed oil franchise fee.

The spot will run on network TV in Eau Claire, Green Bay, LaCrosse, Rhinelander and Wausau.

In it, a "TV reporter" says Senate Dems just passed a gas tax that "starts out at five cents a gallon, but the sky is the limit." The reporter then asks a series of disgusted motorists their reactions.

The reporter says Assembly Republicans are fighting to stop the increase and then directs viewers to information that comes up on the screen with a number to call state senators.

Watch the ad here.

Read the WMC press release here.

Dane Co. Exec. Kathleen Falk said counties have more at stake than public schools should the Legislature fail to reach a budget agreement, and she slammed the Legislature for "not getting their job done" during a press conference where she unveiled the Dane County budget.

She said counties face more difficulty in this uncertain budget season, "Because there are literally hundred of lines in the county budget that affect the services for citizens here."

Falk said that there are millions of dollars that could go either way with the outcome of the state budget, and said she tried to construct the most accurate budget while looking at the political makeup of the Legislature.

"Because of the failure of the Legislature to finish a budget I had to make my best guesstimates on what I think those numbers will be at the end," Falk said.

See Falk's press release on the Dane Co. budget here.

See the proposed budget here.

--By Matt Dolbey

State DPI Superintendent Libby Burmaster said today in a letter to Sen. Robson that state statute requires her to use the "most accurate data available" to certify general equalization aid figures. And, for now, the most accurate numbers are those that were set by the state in last year's budget.

"While I wish this was not the case, these aid amounts constitute the most accurate information available to the Department at this time," Burmaster said in a letter to Robson.

See Burmaster's letter here.

See the Robson letter from last week that Burmaster was responding to here.

Rep. Huebsch says in a statement a budget agreement is not likely by Oct. 15, echoing comments made earlier in the day by Sen. Fitzgerald. And, as did Fitzgerald, he continued to push for the Senate to take up AB 506.

"Excuses and procedural delays won't put more money into the classroom and protect the property taxpayers from a massive tax hike," said Huebsch.

See the statement here.

The no-tax pledges continue to add up as the budget stalemate drags on.

This spring, 11 members of the Assembly signed the Boots & Sabers blog pledge.

Then this summer there was the Club for Growth Wisconsin pledge that attracted 23 Assembly members, including two Democrats, and six Senators.

Now, there's the Grover Norquist-led Americans for Tax Reform pledge that has gathered support from those six Senators and 24 Assembly members.

Rep. Marlin Schneider, D-Wisconsin Rapids, wonders if the no-tax pledges are the reason the budget is going on four months overdue.

Seante Minority Leader Scott Fitzgerald, R-Juneau, said this morning he doesn't see how the state budget can be done by Oct. 1, and he urged Senate Majority Leader Judy Robson, D-Beloit, to schedule votes for the school funding and local government aids bills passed by the Assembly two weeks ago.

Pointing to a letter Robson sent on Friday to DPI Superintendent Burmaster urging her to use the school funding numbers from the Assembly bill, Fitzgerald said Robson is are now engaged in "partisan politics and hiding behind process."

Fitzgerald said the letter shows Robson "is not taking this second deadline seriously," referring to the Oct. 15 date when Burmaster must certify school funding numbers before sending them off to local school districts.

"Her members of her caucus are now fully aware that there is no reason that these two bill should not be completed," Fitzgerald said. "And if they are not passed in the Senate and put on the governor's desk, it will result in a $600 million property tax increase."

Should that tax increase come to pass, Fitzgerald said, it should be clear who's to blame, and it's not the Assembly or Senate Republicans.

Fitzgerald warned that the Legislature may eventually be in the position of trying to pass each portion of the budget individually with separate pieces of legislation. The governor and his cabinet members will be out telling "Chicken Little" stories about the ramifications of not passing a budget, he said, but doubted the sincerity of that message.

"If the governor continues to maintain that he will not sign those separate pieces, it's pretty hard for me to believe that he really in the end cares what those specific items are that his cabinet is out talking about right now," he said.

See more in today's PM Update.

Gov. Jim Doyle met with his entire cabinet and other top administration officials at 8 a.m. this morning to discuss the "dire consequences" that will result if the Legislature doesn't pass a budget, said spokesman Matt Canter.

Doyle will be in Appleton at noon today to meet with seniors and highlight the damage to Family Care and SeniorCare that would ensue should a budget fail to pass.

See a list of "no budget" consequences compiled by the administration here.

Senate Minority Leader Judy Robson, D-Beloit, and Assembly Speaker Mike Huebsch, R-West Salem, today start their second week of closed-door negotiations with administration officials to try to reach a budget compromise.

Unlike the first week, meetings will be held at or near the Capitol in downtown Madison, according to Canter, to provide better access to the negotiators. Meetings last week were held at the Executive Residence in Maple Bluff.

Robson and Huebsch are meeting today at the Legislative Fiscal Bureau office.

The Wisconsin Academy of Trial Lawyers are calling on budget negotiators to rule out a transfer from the Injured Families and Patients Compensation fund as way to balance the budget.

"By law the Fund is an 'irrevocable trust' designed to compensate injured patients and their families," said Academy President Rob Jaskulski. "A raid on the Fund would be a serious violation of the law enacted specifically to prevent this very conduct."

See the press release here.

Senate Majority Leader Judy Robson, D-Beloit, said last week that Assembly Speaker Mike Huebsch, R-West Salem, had agreed to a transfer from the fund, but an amount has not been agreed to. Huebsch's office has denied any such agreement has been reached.

The Michigan state Legislature passed a budget around 4 a.m. following a partial government shutdown ordered by Democratic Gov. Jennifer Granholm.

Read the Associated Press coverage here