WisPolitics Budget Blog

A federal stimulus package focused on "getting people to work" would stem widespread unemployment, Gov. Jim Doyle said today as he warned about an upcoming budget plan without "any big new initiatives of any kind."

While he is hopeful that a federal stimulus package will provide relief, Doyle cautioned that there isn't a cure-all for the ailing economy.

"There is real risk that (the economy) gets worse but I think that without a major stimulus package it almost certainly will," said Doyle on Tuesday. "So I think people have to recognize this is not going to be an immediate turn-around."

Doyle, in an interview with WisPolitics.com at the Executive Residence, said the most significant change Wisconsin will see under Barack Obama is the "economic recovery package that's actually directed at getting people to work. It isn't gonna be 'Here banks, have a bunch of money and we're gonna see what happens."

The Democratic governor, entering his seventh year in the governor's office, said by the accounts he's heard, the recession, which began at the start of 2008, will continue through the first quarter of 2010. "Recessions of that length do real long-term damage to countries," he said.

Doyle said unemployment numbers are expected to rise nationally, and he doesn't expect Wisconsin to be immune to that trend. "We have just seen the biggest single-month jump in unemployment since the Depression. So it's a huge challenge. I think without this stimulus package it would go up dramatically higher," Doyle said.

Read more from the interview

Listen to audio of the interview

Madison Mayor Dave Cieslewicz released his list of infrastructure requests for the proposed federal stimulus package today.

In the submission to Gov. Jim Doyle, the U.S. Conference of Mayors and Wisconsin's congressional delegation, Cieslewicz asked for funds for street repair, water utility projects, and expanded green jobs, as well as a committment to some of his more ambitious goals for the city.

"If the stimulus package is going to work, we need to move beyond projects that would have been done anyway and get to truly visionary projects that likely would not happen but for this once in a generation opportunity," Cieslewicz said in a statement.

Among the projects listed are a new downtown library, a central park, new train stations for high-speed rail, a new swimming pool and a new public market.

See the press release here.

See the list of requested projects here.

U.S. Senator Russ Feingold has outlined his priorities for the expected federal stimulus package, sticking to principles included in his E4 (economy, employment, education and energy.)

"Wisconsin has an outstanding workforce and we must do more to help these workers gain access to quality jobs," Feingold, D-Middleton, said in a press release.

In a letter to President-elect Barack Obama and Senate Majority Leader Harry Reid, D-Nev., Feingold stressed the need to address infrastructure, schools and public housing. In addition, Feingold called for investment in transit and clean drinking water, and the creation of "green collar" jobs among other initiatives.

"While our country is facing some very tough economic times, we also have a great opportunity to put people to work by building a stronger nation," Feingold said.

See Feingold's letter here.

Milwaukee County Executive and probable 2010 GOP guv candidate Scott Walker says he won't lobby in Washington, D.C. for a piece of the federal stimulus package that Gov. Jim Doyle hopes will help states balance their budgets.

Walker said in an interview with WisPolitics last week that while there may be merit to the federal government providing funding for infrastructure projects, he's opposed to a "bailout" for state and local governments that have budget deficits.

"That doesn't force state and local governments to fess up to the problems that got them into deficit in the first place. That just defers them to the future," he said.

Meanwhile, Dane County Executive Kathleen Falk Dane Co. Exec. Kathleen Falk has asked President-elect Barack Obama to include funding for local projects in any federal stimulus package, including $6 million in road improvements and $1.4 million for bridge replacement.

According to a release, the county would cover 20 percent of the total costs of the projects, which would be in addition to what Falk has proposed in the 2009 capital budget.

See the release here.

While Walker admits some of Wisconsin's projected $5.4 billion deficit is due to a weak national economy, a major portion of the problem "is directly attributable to the state government year after year deferring tough decisions to the future."

Walker said his idea of an economic stimulus plan is "a dramatic, across-the-board income tax cut."

"The best thing you can do to stimulate the economy is cut taxes," he said.

Total gross property taxes will rise about 4.3 percent prior to state tax credits, the Wisconsin Taxpayers Alliance estimates.

The group says that school property tax levies statewide are up 5.2 percent, tech college levies up 5 percent, and counties are 3.1 percent. With an estimate of a 3.5 percent increase for municipal and related taxes, total gross levies will reach $9.65 billion, WISTAX estimates.

See the WISTAX press release here.

A spokeswoman said this morning the Wisconsin Medical Society will appeal a court ruling that the state's transfer of $200 million from the Injured Patients and Families Compensation Fund was legal.

Dane County Circuit Judge Michael Nowakowski made the ruling Friday. Gov. Jim Doyle and legislators approved the transfer in 2007 to help balance the state budget.

Read the decision here.

Milwaukee Mayor Tom Barrett has sent his own list he'd like to include in a federal stimulus package, totaling $600 million in infrastructure, economic development and housing projects.

See the list and Barrett's accompanying letter to President-elect Obama here.

Department of Workforce Development Secretary Roberta Gassman announced today that Wisconsin's unemployment rate for November was 5.3 percent, up 0.9 percentage points from October. The rate was 1 percentage point up from the rate in November of 2007.

"Like almost every other state in the nation, Wisconsin is feeling the effects of the national economic downturn, despite its diverse economy and talented workers," Gassman said in a statement.

See the press release here.

U.S. Rep. Dave Obey said today that members of Congress will be taking cues from state and local officials on how to divvy up federal stimulus cash, not using the money to fund their own pet projects.

"There will be no earmarks in this package," said Obey, D-Wausau, the chairman of the House Appropriations Committee. "We are trying to make it clear to everyone that this is not a time for everybody to sidle up to the bar with their favorite project. This is a time when we have to take a look at the national interest."

Gov. Jim Doyle went to Washington, D.C., last week to testify before Obey's committee on the need for federal stimulus cash for deficit-riddled states. Wisconsin faces a $5.4 billion deficit over the next 18 months.

Doyle and governors from across the country are not only looking for money to fund infrastructure projects -- Doyle submitted a list of projects totaling $3.7 billion that would be ready to go in the next four months -- but are also looking for immediate help to fund programs like Medicaid and public schools.

Obey, speaking with reporters in a conference call, said stimulus money to states will be passed in one package. Obey said he has spoken with Obama administration officials about the stimulus plan, but declined to give details package which has been estimated to be between $600 billion and $1 trillion.

Obey said how the money is distributed will depend on what programs are in place.

"We're trying to use existing authorities as much as possible so you don't have to draw up whole new rules and regulations before you can get the money out," he said.

Stateline.org is reporting that the total deficit in states' budgets could reach $200 billion. See the story here.

Governors from across the country, including Wisconsin Gov. Jim Doyle, are looking for help from the federal government to bolster flagging state economies.

Also, the National Association of State Budget Officers have released their fall fall fiscal survey of states. View it here.

The property tax bill on the typical Wisconsin home increased $4 over last year.

The Doyle administration called that the smallest increase in nine years.

A median-valued home in the state, worth an estimated $184,029, would receive a tax bill this month of $2,843, up slightly from $2,839 the year before.

Doyle said in a release the new First Dollar Credit, which took effect for the first time on 2008 property tax bills, helped keep increases down by providing $75 million in property tax relief. The credit, included in last year's budget bill, exempts the first $4,135 of assessed value from the property tax bill for schools. That amounted to a credit of $35 for the median-valued home this year.

Read the release here.

Gov. Jim Doyle said today that the bidding and approval process for infrastructure projects funded under a potential federal stimulus package would need to be streamlined to "get more projects moving more quickly."

Doyle and other governors made a push last week in Washington, D.C., for an aid package to boost lagging state economies. The package, which Congress will begin working on in January, will include money for road and building projects. See the list of projects Doyle submitted to the Obama administration here.

Doyle told reporters today that timing for the lets for bids and the state's response will be sped up to meet Obama's goal of getting people to work quickly.

"We're going to have to take a number of steps to do it and we're going to have to do it obviously in a way that protects the integrity of the process and assures the appropriate design work and engineering and everything has been done," Doyle said.

Doyle said the hope is to get the projects underway in 60 to 90 days following passage, but noted that frozen soil in the Badger State may dictate the start of some projects.

Doyle has said he expects to submit his budget in mid-February. But if the federal government is slow to move on a stimulus package, he may be able to delay his budget "a couple of weeks."

Beyond that, he said, "I'm going to have to submit a budget that's based on that assumption (of no federal help.)"

Asked whether he will consider consolidating some state agencies in his budget proposal, Doyle reiterated that "everything's on the table. We're going to make very deep cuts, we're going to find efficiencies everywhere we can."

"But as I've also said when you get to a point where 10 percent of the positions in state agencies are not filled and we probably are going to have to go well beyond that, you're going to reach a point where I could pretty much tell state employees not to come to work for six months and that still wouldn't deal with the size of the deficit that we're dealing with," Doyle said.

New York Gov. David Patterson's budget will include tax increases for soft drinks and luxury items like furs and boats, the New York Times reports.

Patterson will introduce his budget Tuesday. New York faces a $15 billion budget deficit for this and the next fiscal year.

Paterson's also cuts roughly $9 billion from the state budget, with the largest share coming from state education aids and the Medicaid program. Patterson also proposes rollbacks on state worker benefits.

Gov. Jim Doyle has said he will try to balance Wisconsin's projected $5.4 billion deficit without raising taxes, and has said protecting education and funding for medical assistance will be his top priorities. Sometimes, however, budget proposals from one state end up being utilized by others.

Doyle will introduce his budget bill in February.

See the NY Times story on Patterson's budget proposal here.

The conservative American Legislative Exchange Council is calling on its members to oppose a federal economic stimulus package to states.

In fact, ALEC's national chairman Bill Howell, speaker of the Virginia House of Delegates, says he is "deeply disturbed" by the proposal, and the group is circulating a petition against the bailout.

"At a time when federal spending and debt are soaring, the federal government should not put taxpayers on the hook for yet another bailout," Howell says in an email sent to members today. "Furthermore, a federal bailout could have dire implications on the proper role of federalism. A more effective approach to help the states would be to free them from costly federal mandates ... I ask our ALEC members across the country to join us in our stand for Jeffersonian principles, by opposing the federal bailout of the states and signing the enclosed ALEC petition."

Wisconsin's Senate Minority Leader Scott Fitzgerald, R-Juneau, is the state chairman of ALEC. He has also been vocal with criticism of the bailout, saying it is "the mother of all gimmicks."

"That's our money. That's the taxpayers' money. That's not magic money," Fitzgerald said last month in an interview with WisPolitics. "And if the states start getting in line with everybody else to tap into this ... it's embarrassing."

See the email from ALEC here.

State Budget Director Dave Schmiedicke said a revenue collection increase of 4.1 percent in November doesn't alter his projection of a $5.4 billion budget deficit over the next 18 months.

November revenue collections rose by 4.1 percent over the previous year, despite a staggering 130 percent drop in the amount of corporate taxes collected, according to numbers released today by the Department of Revenue. Year-to-date, collections are $4.7 billion, up 2.8 percent from last year at this time.

Speaking in Milwaukee yesterday, Gov. Jim Doyle said he'd like to see several months in a row of such increases.

"The numbers are really pretty bad nationwide," Doyle said. "I'm glad that November's numbers were up a little. ... It's better to be on that side of the line."

Doyle pointed out that a lot of businesses were doing well in the summer only to be hurt when the credit crisis hit in September and consumer demand dropped.

A DOR spokeswoman said the dramatic downturn in corporate tax collections is due to a high number of refunds. Oct. 15 is a filing deadline for corporations.

Schmiedicke says the revenue collections also show a continued weakness in sales tax collections. In addition, the modest increase year-to-date looks less robust because the '09 numbers include a boost in the cigarette tax and there were a number of refunds paid out at the beginning of '08.

Minus those factors, he said, revenue from '08 to '09 "is pretty much flat."

"I don't think it revises (the deficit estimate)," Schmiedicke said. "And national factors seem to be getting worse."

Gov. Jim Doyle said members of Congress were "receptive" to the message he and other governors delivered to the House Appropriations Committee today.

Whether that will translate into support is another matter, though federal lawmakers are facing circumstances similar to Wisconsin's situation in their home states.

"Everybody is looking at this very, very hard," Doyle told a news conference in Milwaukee after returning from Washington, D.C.

He said Obama's economic team is focused on fixing the economy.

"They understand their number one job now is to get this economy moving and people working," Doyle said.

Even with a federal stimulus package, Doyle said there will have to be significant cuts to state jobs. But he said his desire is to make those cuts through attrition, not layoffs.

Doyle said he would direct stimulus cash to rebuilding I-94 and the clean up of PCBs in the Fox River.

--By David Wise

With the help of more than 6,000 state residents, a group of Wisconsin business, labor and policy organizations have joined forces to release a comprehensive plan they say would improve the fairness of Wisconsin's tax system while preserving the quality of public services.

The Wisconsin Way plan, called the "Blueprint for Change," calls for reducing the state's reliance on the property tax as a mechanism for paying for governmental services and education while increasing reliance on "income-sensitive revenue sources" like sales and consumption taxes.

It also calls for a significant increase in the amount of investment capital available for economic development purposes -- one component would be the development of a "State of Wisconsin Capital Mutual Fund." The fund would allow state residents to allocate a small percentage of the income taxes they owe. The fund would provide venture capital and returns on the investments would be exempt from state taxes.

The Blueprint for Change represents a collaborative effort by members of the Wisconsin Education Association Council, Wisconsin REALTORS Association, Wisconsin Transportation Builders Association, the Transportation Development Association of Wisconsin, Wisconsin Counties Association, Wisconsin League of Municipalities and Wood Communications Group.

See the group's press release here.

Read the Blueprint for Change here.

UPDATE: The report is getting attacked from both sides of the aisle.

Decker Slams Wisconsin Way report as out of touch

Nass: The Wisconsin Way: A blueprint to higher taxes and government bloat

The Legislative Fiscal Bureau has released its overview of 2009-11 agency budget requests. See the page here.

November revenue collections rose by 4.1 percent in November over the previous year, despite a staggering drop in the amount of corporate taxes collected.

Year-to-date, collections are $4.7 billion, up 2.8 percent from last year at this time.

See the release here.

Senate Majority Leader Russ Decker says those who killed gas tax indexing ought to lead the charge to bring it back.

"The people that led the charge to repeal gas tax indexing ought to fess up and say that was the wrong thing to do ... and put it back on," Decker, D-Weston, told "WisOpinion.com: The Show."

Decker says the extra gas tax money could be used to help solve "huge problems" in road repair and construction. But he says the oil franchise fee being pushed again by Gov. Jim Doyle may "supplant" the need for gas tax indexing if approved.

Asked about the possibility of general tax rate increases, Decker said Dems would first look to "loopholes" and "serious belt-tightening" and that increased federal aid was "desperately needed."

As to fed infrastructure money that appears to be on its way, Decker wants flexibility so that some of that money can be used by states like Wisconsin to fill budget holes since general fund money is needed for schools and elderly assistance.

See the Dec. 10 show here.

Gov. Jim Doyle's prepared remarks:

Thank you, Chairman Obey, for inviting me to testify today. I appreciate your leadership during these very tough economic times and your work to help move this country forward.

The country's economic crisis has created very serious challenges for Wisconsin, and I believe that unless addressed correctly, these challenges to our states will impair our country's ability to recover and move forward.

Before I address the unique hardships of the current crisis, I want to first acknowledge the attention on states' infrastructure and let you know Wisconsin has been working hard to line up projects that are ready to go. I also want to say a quick word about state budgets and how we handle ordinary economic downturns.

Wisconsin's budget, which is typical of state budgets, is required to be balanced by law. So when the economy slows, we have to adjust. Until September we were on course to meet our revenue projections.

Last spring, we adjusted to a bad economy by making major cuts to state government. I made $270 million in cuts to state government this year. Those cuts, when combined with actions we took in our original two-year spending plan, totaled $500 million in reductions to state agencies. These actions were recognized as an ability to adapt and manage a challenging fiscal situation, and Wall Street upgraded our bond rating.

Unfortunately, this economic crisis is unprecedented in recent decades. We had based our budget on modest revenue forecasts. We predicted the slumping economy would leave us $28 billion in revenues as we prepared for our 2009-11 biennial budget. But after what happened this fall, we now predict only $25 billion in revenues over the two-year period.

The projected drop in revenue, combined with expected needed increases in programs such as unemployment and Medicaid, leaves us facing our largest budget gap ever -- $5.4 billion over the next two years, or 17 percent of our biennial budget.

Due to cuts we have made over the last few years, we approach the challenge ahead with a state government where 1 out of 10 of our workers no longer holds the job. The budget deficit we face in this economic crisis stands to, at a minimum, double the number of state workers out of their jobs. And no matter how many government workers we let go, the most basic fact is that these people only comprise a small part of our budget.

So, what we are left with is cutting away our states' ability to carry out the most essential expectations people have for government. We will be forced to cut the very tools and services that people depend on to pull them out of a recession and move them ahead.

Specifically, state budgets let our communities hire police officers and firefighters. They allow kids to get a good education, and a chance at a good university or technical college education that their families can afford. State budgets also make sure that a kid who breaks her arm gets the appropriate medical care she needs.

So that's what is threatened: our schools, our universities, our technical colleges, our access to health care, our local police and firefighters. These are the areas that determine our budgets, and aid to long term capital projects, while beneficial to the future, will not close our budget shortfalls or help ease devastating cuts.

And these cuts could undermine years of careful progress. As you know so well, Mr. Chairman, we have worked very hard together to make sure that every child in Wisconsin has access to health insurance. We have worked hard to make sure that families can get their kids a good education they can afford. We have worked hard to put more police officers on the street to turn some of our most troubled neighborhoods around.

For example, in Milwaukee, state funding has allowed the Police Department to launch a new, highly strategic, data-driven Neighborhood Task Force, which is credited for reducing total crime in the city by 10 percent and homicides by 33 percent. This program is saving lives and making a city stronger.

The magnitude of the budget shortfalls will also force states to consider tax increases.

We recognize that we will have to make cuts, and we will make those difficult choices. But we can not allow our states' revenue shortfalls to be an obstacle in our efforts to recover from this recession and move this country forward.

I am here to do everything I can to help move our country ahead and it is my deep belief that our approach must allow states to meet our citizen's most basic needs.

For that to happen, the deficit that most states face must be addressed. We all recognize that unfortunately this recession will move well beyond this fiscal year and the next. So far, current estimates put the total states' deficits at $150 billion in this fiscal year and the next.

Mr. Chairman, today I am asking you to help us make us stronger states so that we can better help our country. Thank you.

See Doyle's prepared remarks for his opening statement here.

See the live Web cast here.

Gov. Jim Doyle tells WISN-TV in Milwaukee today he's ready to make the case to Congress for a federal aid package to stimulate state economies.

The interview was to first air at 6 p.m..

Doyle said he will tell the House Appropriations Committee tomorrow that "state governments and state taxpayers are really the ones who feel the brunt of this" because a slowing national economy means a greater demand for government assistance. The governor is scheduled to testify at 8:30 a.m. tomorrow before the panel.

Doyle said he met with President-elect Obama's Chief of Staff Rahm Emanuel and other members of his economic team, saying they were "careful" not to talk about specific amounts the aid package may be worth.

"They are very focused on how they get the economy turned around and get people back to work," he said.

Doyle talked a bit about the list of projects he presented to the economic team, which includes reconstruction work on I-94 from Milwaukee to the Illinois border.

"If we were to receive more federal money up front, we could accelerate that work and we could put people to work now," he said.

Find more at the WISN-TV Web site.

Gov. Jim Doyle has released a 22-page document listing the infrastructure projects he'd like to direct federal cash to if a stimulus package is approved by Congress and President-elect Obama.

The list totals $3.7 billion in projects that could be ready underway within 120 days of passage.

The list includes transportation projects such as the I-94 project from Milwaukee to the Illinois border, US 41/45 improvements, the Stillwater bridge and the proposed Kenosha-Racine-Milwaukee commuter rail line.

Also on the list are a handful of school projects encompassing both K-12 schools, Wisconsin Technical College System and University of Wisconsin System proposals. Doyle also included requests for Great Lakes efforts, green energy and health care programs.

See the list here.

Gov. Jim Doyle's list of meetings in the nation's Capitol includes some heavy hitters that could be crucial to whether an economic aid package for states becomes a reality.

According to Doyle's office, among those the governor is meeting with today in D.C. are President-elect Obama's economic team, including Obama's Chief of Staff Rahm Emanuel. Doyle will also meet one-on-one with U.S. Rep. Dave Obey, D-Wausau, the chairman of the House Appropriations Committee, whose support will be vital to putting together a package that will help Wisconsin and other states facing record high deficits.

Doyle will testify before Obey's committee tomorrow at 8:30 a.m. Central Time about the need for an economic stimulus package for states. Obama has said he'd like a bill from Congress ready to sign when he takes office.

Wisconsin is the fourth largest budget gap nationally for the 2010 fiscal year, according to a report from the National Conference of State Legislatures.

NCSL estimates the Badger State's deficit at $2.5 billion, or 17.2 percent of the general fund. That puts Wisconsin behind only Arizona (24.2 percent), New York (20 percent), and California (18 percent). After Wisconsin, the next highest are Minnesota(14.7 percent) and Kansas (14.5 percent).

Overall, 15 states are double-digit budget gaps in FY10, NCSL says.

NCSL puts Wisconsin estimated budget gap at $281 million, or 2 percent of the general fund, for FY09.

See the NCSL press release.

This page has a map that provides info for all 50 states on their budget gaps in FY09 and FY10, and their tax structure.

Gov. Jim Doyle left for Washington, D.C. last night, where he will talk to lawmakers today about a federal stimulus package for states.

Doyle is one of three governors, along with New Jersey Dem Jon Corzine and Vermont Republican Jim Douglas, who will testify Thursday before the House Appropriations Committee.

Wisconsin Independent Businesses executive director Wayne Corey is calling the notion of increasing sales tax to help balance the state budget "unthinkable."

"There can be no question that for the State of Wisconsin to realize significant revenue from expansion of the sales tax base business services and farm necessities will have to be taxed," Corey says in the letter to the governor. "Adding new costs by taxing such services as accounting, computer services, bank service charges, advertising, architectural and surveying, legal, commercial leases, real property repair and janitorial services -- to name only a few exemptions -- would add significant new costs to operating a small business. Adding the sales tax to farm necessities including veterinary services would directly impact the income of Wisconsin's independent farmers."

See the press release here.

Gov. Jim Doyle will go to Washington, D.C. on Thursday to testify before the House Appropriations Committee on Wisconsin's economy and the need for federal aid to states.

Doyle is set to testify at 8:30 a.m. Central Time. Also testifying will be New Jersey Gov. John Corzine and Vermont Gov. Jim Douglas.

U.S. Rep. Ron Kind, D-La Crosse, said in an interview with WisPolitics.com that a "multi-faceted" aid package to states that will include funding for infrastructure projects "makes sense."

"It's an investment in our future," said Kind, who sits on the powerful House Ways and Means Committee. "It's just not pumping liquidity into a bunch of bank institutions and hoping they do they right thing. It's actually making sure we’ve got an infrastructure system in this country that's going to work for our economy and work for our families so we don't have bridges collapsing on us."

Kind said the package will also include funding to states for the Medicaid program, and he's also hoping there will be a significant amount to invest in renewable energy.

"Agriculture here in Wisconsin can play a prominent roll" in the renewable energy industry, he said. "We could be a leader when it comes to renewable energy generation."

Kind said Congress will begin meeting in January to put together a package to be ready by the time President-elect Barack Obama takes office.

Listen to the interview here.

The Wisconsin District Attorneys Association is proposing a "modest" increase in the state's alcohol tax to reinstate a pay progression system for assistant district attorneys.

See the press release here.

Gov. Jim Doyle said today that he would like a share of federal stimulus money that could be coming to Wisconsin to be used for maintenance of University of Wisconsin System buildings.

When Doyle and other governors met with President-elect Barack Obama earlier this week, he asked the governors to come up with a list of projects in their states that are ready for "shovels in the ground" with the goal of stimulating new jobs.

Doyle said that the federal package may be worth "hundreds of millions" to Wisconsin, which is facing an estimated $5.4 billion budget deficit over the next 18 months.

Doyle said in addition to the state Transportation Fund, which would be a major beneficiary of the package, he knows there are many maintenance projects at UW campuses that he'd like on that list.

"We defer a lot of maintenance at our universities," he said.

Because of the politics involved in capital projects, Doyle said often new buildings get preference over maintenance.

"The maintenance work is all there ready to be done. It can be moved very quickly," he said, adding the "great thing" is the campuses are spread throughout the state.

Doyle made the comments to reporters following a ceremony to light the Capitol Tree. Listen to Doyle's Q&A with reporters here.

Gov. Jim Doyle said Wednesday he has not determined yet whether he will introduce a budget repair bill to address the $342 million budget shortfall in this fiscal year, but he would prefer to tackle it in the 2009-11 budget bill.

"My preference is probably put it in a single budget bill, (and) get the bill passed really quickly," he said. "Fortunately I don't think we're going to see these kinds of delays we've seen before. Get it done in a timely manner, a couple of months after I've introduced it ... and be able to move on."

But that doesn't mean there aren't things the Legislature can do to boost revenues in the short term, he said, particularly singling out the hospital assessment.

Doyle said the proposed assessment will "not only can get the hospitals more money and get them better reimbursed for the patients that they see but also can help us significantly deal with the shortfall in this biennium. So we've got a couple of options right now that we're going to be OK."

Listen to the Q&A with Doyle here.

Gov. Jim Doyle said tonight that he would be reluctant to roll back the repeal of tax cuts on Social Security income, medical insurance premiums and child care costs, saying there would be "fairer" ways to raise revenues.

While Doyle said "everything's on the table," he can't see a scenario in which the state would go back on its repeal of the tax on Social Security.

"This is something that I fought really hard for and people have been counting on it. We've been phasing it in, and I'm really proud of the fact Wisconsin no longer taxes Social Security," Doyle told reporters following a reception for the opening of a Google office in downtown Madison. "I really don't think we should go there. If you have to raise tax revenue there are probably better ways to do it than essentially tax Social Security. I'm not sure why we ever did it in the first place."

Doyle said he would be similarly reluctant to roll back the repeals of taxes on medical insurance premiums and child care costs.

"I'm only going to delay those if there is absolutely no other option because those are exactly the things that help the families that need the help the most right now," Doyle said. "Those were my big tax cuts that were really directed at hard-working families."

With an estimated $5.4 billion deficit facing the state over the next 18 months, the governor said things could still get worse.

"We're all kind of living day by day and I think we're going to have to have several months here before we see whether we've hit the bottom or if there's another level we can go to," Doyle said. "I sure hope we've hit the bottom."

The governor has said he would only look at raising revenues through an income tax surcharge or an increase in sales tax as a last resort, and tonight he said he is still scanning the budget for cuts.

"I think the real challenge now is to first see where do you really go to the point you can't go any further with the cuts. Where do you go where you're not willing to take that next step of really devastating the schools or really making tuition at the university go to levels that people can't even afford. We've got some work to do to get to that level, so we'll see," he said.

Incoming Joint Finance Committee Co-Chair Mark Pocan says in the new "WisOpinion: The Show" that there likely will have to be some revenue additions in order to balance the budget next year.

Pocan also said he doesn't think the estimated $5.4 billion deficit will get worse.

Pocan, D-Madison, said during Wednesday's taping that "a lot of the low-hanging fruit is gone" and that there's agreement on some items like the hospital assessment and that there's hope some federal aid "will come in."

But after all of that, "my guess is we will have to look ...(at) something on the plus side of money coming in."

Pocan, however, wouldn't rule in or out anything, adding budget-makers will `"have to get very creative."

Whatever happens, Pocan said Dems will make the concerns of working families a priority. Mentioning WMC, he said: "For too many years big business has pretty much been at the trough and gotten whatever they want. We're going to make sure we do what's right for working families."

Go to www.wisopinion.com tomorrow to find a link to the show.

GOP aide Char Vrieze has been selected by the Dem co-chairs of the Joint Finance Committee to serve as committee clerk.

Incoming Assembly JFC Co-Chair Mark Pocan said he and Senate Co-Chair Mark Miller decided Vireze was the most qualified person for the job.

"I've worked with Char on Finance, and she's one of the most dedicated professionals that I've dealt with," Pocan said. "I think sometimes we need to get beyond party labels and just get the best people in terms of competence in the job."

Vrieze most recently worked for outgoing JFC Co-Chair Rep. Kitty Rhoades, R-Hudson.

Longtime JFC clerk Diane Harmelink is retiring, and the Senate clerk from this session left Miller's office for a new job in Washington, D.C. Miller aide Zac Kramer will become the new Senate clerk for the committee.

Vrieze will serve as the main clerk for the committee with Kramer backing her up, Pocan said.

In addition, Josh Freker is leaving his post as policy director for the Wisconsin Coalition Against Domestic Violence at the end of the year to in Pocan's Capitol office as he takes over as JFC co-chair.

Freker said he will handle communications and work on some non-budget policy matters for Pocan.

Senate Minority Leader Scott Fitzgerald, R-Juneau, said today he's unwilling to join efforts to ask the federal government for aid to help fix the state's budget problems.

In a WisconsinEye interview, Fitzgerald called such a move "the biggest budget gimmick that we can possibly come up with." He complained the governor has used fund transfers and "smoke and mirrors" to keep the budget together in the past. He also said the state would in essence be asking the taxpayers to fix the problem.

"It's unbelievable, I think, that you could even have the gall to go out there and ask for that type of bailout," Fitzgerald said.

Fitzgerald said he would prefer to see an economic stimulus package along the lines of what President Bush did earlier this year. He said he wasn't sure if it should be in the form of more checks for taxpayers, but it should be something that reaches the "grassroots" and helps stimulate the economy.

Watch the interview here.

Senate President Fred Risser said he wants the state to double the number of auditors at the Department of Revenue to go after back taxes to help fix the state's estimated $5.4 billion budget deficit.

Risser told WisconsinEye he also wants to end the practice of corporations setting up dummy corporations in other states to avoid Wisconsin's corporate income tax and supports the Doyle proposals to implement a new hospital tax and oil assessment fee.

He's also prepared to vote for a tax increase to help fix the shortfall, if needed to protect services. But he said it wouldn't be necessary if the state simply collected what it was already owed.

"I think tax fairness is key," Risser said.

Watch the interview here.

Gov. Jim Doyle said that while a federal stimulus package will help states address mounting budget deficits, it won't help Wisconsin avoid "deep cuts."

"There isn't enough federal money in the world to take care of the kind of deficits that states are facing," Doyle said in a conference call with reporters, after meeting with President-elect Barack Obama and Vice President-elect Joe Biden in Philadelphia over the last two days. "I believe that we're going to have to make very very deep cuts in state government and they're going to be very painful."

Doyle said he would like to see a federal assistance package that helps states cope with programs that are stressed during time of economic downturn, like Medicaid and unemployment compensation which he called "basic shared responsibilities" of the federal and state governments.

He also said he'd like to see a stimulus for infrastructure improvements, which he said would go beyond roads and transportation to K-12 schools and universities.

Doyle said Obama has asked governors to come up with a list of projects in their respective states that are "ready to go, ... (to) get shovels in the ground almost immediately upon passage by Congress." He said he is in the process of devising that list, with the hope of "putting thousands upon thousands of people to work."

Doyle said the discussion with Obama and Biden did not include talk about specific numbers the package could entail, and he didn't wish to talk about what amount of help could be offered to Wisconsin.

"I would just be making a guess and I shouldn't do that," he said.

But Doyle added that Obama must be sure not to favor one state or region over another. He said the state congressional delegation, which includes House Appropriations Committee Chairman David Obey, D-Wausau, would help in ensuring Wisconsin gets its share.

Doyle said Obama wants a stimulus package passed by Congress and on his desk so he can sign it upon his inauguration Jan. 20. But Doyle said if the federal package is slower in coming together, he will prepare a budget minus the federal aid. Doyle will present his 2009-11 budget in February.

Listen to the conference call here.

Pennsylvania Gov. Ed Rendell outlined top priorities the nation's governors have for a federal economic stimulus bill that would boost flagging state economies. Wisconsin Gov. Jim Doyle and governors from across the country are in Philadelphia to meet with the new administration and talk about the dire economic straits many states are facing.

Seated beside President-elect Barack Obama and Vice President-elect Joe Biden this morning at a press conference, Democrat Rendell said the governors were not there to "beg for federal money," and the states recognize their own responsibilities to spur economic recovery. But, he said, the federal government does have the ability to lend a hand to states in shared programs like Medicaid, and other programs to "keep the safety net intact."

Rendell called for Obama to sign an economic recovery plan on his first day in office that will include money for infrastructure improvements and renewable energy. "Renewable energy can be a great and powerful job creator," Rendell said.

Doyle is scheduled to hold a conference call with reporters this afternoon to discuss the meeting with Obama.

CNN: Obama pledges to work with governors on economy

Seventy-three percent of Wisconsin residents oppose raising taxes on business profits, according to a poll from the conservative Wisconsin Policy Research Institute. Only 19 percent supported raising taxes on businesses.

The poll was conducted for WPRI by Diversified Research between Nov. 9-10, prior to Gov. Jim Doyle's announcement that the state budget deficit will reach $5.4 billion over the next 18 months.

See more on the poll results here.

Meanwhile, Doyle reportedly told the Milwaukee Journal Sentinel editorial board that he may accept a combined reporting business tax.