State Senate leader differs 
with Assembly on budget

June 16, 2009

 
MADISON - The leader of the Wisconsin Senate said Monday that he disagrees with changes made to the budget in a couple key areas by the Assembly, presenting a roadblock to quick passage.

Gov. Jim Doyle and other legislative leaders have stressed they want the budget enacted by the start of the fiscal year July 1 to start solving a projected $6.6 billion shortfall.

The Assembly passed its version of the two-year $62.2 billion spending plan early Saturday morning. They altered the governor's plan for taxing oil companies and also removed his proposal to change liability laws.

Senate Majority Leader Russ Decker, D-Weston, said Monday he preferred the governor's oil tax plan that prevented those companies from passing it along to consumers. The Assembly removed that prohibition and said oil companies could pass along the cost of the tax up to 4 cents a gallon at the pump.

Decker also stood by the governor's original proposal to change the state's liability laws, lowering the threshold at which someone could be found liable for damages when more than one person is at fault.

Businesses across the state lobbied against the proposed change to the law known as "joint and several" liability, saying it could result in more lawsuits, higher costs and drive some people out of business.

The Assembly voted to remove the governor's changes from the budget.

Decker said he wants to bring it back.

"Hopefully, we can salvage that," he said before meeting in secret with Senate Democrats to discuss the budget.

He will run into trouble with his fellow Democrats, many of whom don't support it, said Sen. Jon Erpenbach, D-Waunakee.

"It will be very hard to pass a budget if that's in there," Erpenbach said.

Decker also will likely run into opposition on the oil tax. Erpenbach and other Senate Democrats said they wanted to keep the tax but also remove questions about its legality.

The Assembly proposal is a step in the right direction, but other ideas are out there, said Sen. Jim Holperin, D-Conover.

"People are looking for a more palatable way to get to where we need to go," he said.

The Senate will also be looking at numerous changes made by the Assembly to regional transit authorities that could raise sales taxes in some of the most populated parts of the state, including Madison, Milwaukee the Fox Cities and Chippewa Valley. The money raised would pay for commuter rail and other transportation needs.

The plan also allows for an $18 rental car tax in Kenosha, Racine and Milwaukee counties.

The budget raises more than $2.1 billion in taxes and fees and cuts most state agencies by 6 percent to address a $6.6 billion budget shortfall. It also relies on $3.7 billion in federal stimulus money, additional state borrowing and accounting moves to balance.

Even with the areas of contention, Democrats were trying to find agreement quickly. Decker said he hoped the Senate would meet no later than Wednesday to pass the budget.

"The governor wants this thing done because it's bad news," said Sen. John Lehman, D-Racine. "We want it done because it's bad news. The Assembly wants it done because it's bad news. The pain and suffering is spread throughout state government and local government."

 

 

Associated Press