Doyle predicting $3 billion state deficit

Talk about it

Gov. Jim Doyle predicts a $3 billion deficit in the next state budget, but Republicans say he’s exaggerating.

Assembly Speaker Rep. Mike Huebsch, R-West Salem, says it assumes that bureaucrats will get the big spending increases they’ve already asked for – an increase Huebsch puts at 8 percent.

Doyle cites the slumping economy for the state’s new budget problems – which include a drop in tax collections and soaring unemployment benefits.

Wednesday, the Democratic governor ordered state agencies to submit new budget requests – and this time, he wants 10 percent spending cuts.

Doyle says he’s not sure what the exact impact will be yet, but it will be severe.

He predicts deep cuts in state programs and more employee layoffs and his first goal is to protect spending on public schools.

For now, at least, Doyle says he won’t propose an increase in sales or income taxes when he submits his new budget early next year.

But the governor says everything must be on the table.

Not raising the two major taxes has been a point of pride in Doyle’s six years in office.

But the Wisconsin Taxpayers Alliance says other taxes and fees have gone up $750 million in last year’s budget and this year’s budget repair bill.

Doyle also said it’s too early to tell if the current budget will have to be fixed for a second time.

He’ll know more after the next estimates of tax collections comes out in late November.

Tags: wisconsin news, state, deficit, prediction