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The State Senate voted 18-14 along party lines Tuesday (March 25, 2008) to approve an amended version of the budget repair bill that passed the Republican-controlled Assembly earlier. A conference committee made up of select members from each house of the Legislature will likely be convened to resolve the differences between the Assembly and Senate state budget fixes.
"This proposal represents true compromise," said Senate Finance Committee Chair Mark Miller (D-Monona). "It takes part of the governor’s proposal, part of the Assembly proposal, and adds our own recommendations. This proposal demonstrates that the Senate is interested in finding a fair and responsible solution to the budget shortfall."
Senate Majority Leader Russ Decker (D-Weston) said the Senate plan is "a good compromise that tightens the state belt, but also maintains our
police and fire services, good schools and improves our road system for Wisconsin’s hardworking
families and businesses. Our plan also has a lower structural deficit than both the Governor’s and the
Assembly’s versions."
The Senate Finance Committee voted 6-2 along party lines March 20 to support essentially the same version of the bill approved by the Senate.
The Senate bill shields general school aids and categorical aids from $40 million in lapses to the state’s general fund. In contrast, the Assembly plan places in jeopardy funding for categorical aids such as special education, aid for higher poverty districts, grants for school breakfast, 4-K grants, and grants to improve student achievement. Both the Senate and Assembly proposals push off $125 million in general school aid payments by a few weeks into the next biennium. Unlike the Assembly proposal, the Senate plan safeguards funding for the Wisconsin Technical College System and state employee raises.
The Senate bill fills the projected $527 million budget hole primarily through a hospital assessment to capture $400 million in federal funding and by closing the so-called “Las Vegas loophole.” This loophole allows corporations doing business in Wisconsin to avoid paying state taxes by setting up a subsidiary in a state like Nevada which has no corporate income tax.
After the Senate Finance Committee vote, Miller released a statement describing the plan as a “responsible, fair compromise.”
“We tighten the state’s belt while maintaining essential services for Wisconsin’s hardworking families and businesses and reducing the structural deficit,” Miller said.
Resource page on 2007-09 state budget
Posted March 20, 2008; updated March 25, 2008