Wis. governor: Make deep school cuts

Associated Press

MADISON, Wis.

After focusing for weeks on his proposal to strip public employees of collective-bargaining rights, Gov. Scott Walker on Tuesday presented his full budget — a plan that cuts $1.5 billion in aid to public schools, local government and Medicaid but avoids any tax or fee increases, furloughs or widespread layoffs.

Walker said the cuts could be paid for in large part by forcing government employees to pay more for their pension and health-care benefits. And the governor whose cost-cutting ideas have stirred a national debate over public-sector unions gave no indication he’d soften his demand to reduce their power at the negotiating table.

“This is a reform budget,” Walker told lawmakers inside the Assembly chamber as protesters on the floor below screamed, banged on drums and blew horns. “It is about getting Wisconsin working again, and to make that happen, we need a balanced budget that works — and an environment where the private sector can create 250,000 jobs over the next four years.”

Walker’s legislation has drawn tens of thousands of demonstrators to the Capitol over the last three weeks, and tensions were still evident when Walker outlined the budget during a joint session of the Legislature convened under heavy security. Assembly Democrats refused to stand and greet the governor as he arrived to speak.

“It feels like we’re announcing a going-out-of-business sale,” said state Rep. Cory Mason, a Democrat from Racine who criticized Walker’s proposed cuts to education.

Walker’s budget places “the entire burden of Wisconsin’s budget shortfall on our children, our most vulnerable citizens in need of health care and long-term care, and our dedicated public employees,” said Robert Kraig, director of consumer-advocacy group Citizen Action of Wisconsin.

Doing so is Walker’s “own value choice, not an economic necessity forced on him by others,” Kraig said.

The governor released his two-year budget in part to support his argument that public-worker concessions are essential to confront a projected $3.6 billion shortfall. His proposal to eliminate most collective bargaining remains in limbo after Senate Democrats fled the state to prevent a vote.

By eliminating most collective bargaining, Walker says, state agencies, local governments and school districts will have flexibility to react quickly to the cuts.

Even though Walker isn’t ordering immediate layoffs of state workers, his budget will put tremendous pressure on schools and local governments, which will be asked to shoulder huge cuts without raising property taxes to make up the difference.

Walker’s budget includes a nearly 9 percent cut in aid to schools, which would amount to a reduction of nearly $900 million.

Cities would get nearly $60 million less in aid, an 8.8 percent cut, while counties would lose more than $36 million, a 24 percent reduction. They would not be allowed to increase property taxes except to account for new construction.

Walker estimates that his controls on property taxes would save $736 over the next two years for the owner of a home valued at the median price of $161,300.

He proposed a $500 million cut to Medicaid, which would be achieved through a number of changes that include increasing co-payments and deductibles and requiring participants in SeniorCare to be enrolled in Medicare Part D, too.

Walker asked for $82 million in tax cuts, including an expanded exclusion for capital gains realized on investments made in Wisconsin-based businesses. The Legislature previously approved more than $117 million in Walker-backed tax cuts that take effect later this year.

The budget also cuts funding at most state agencies, by 10 percent, except for salary and benefits.