Governor Jim Doyle today signed legislation that will reduce the state's current budget gap by $700 million. The legislation, SB62, includes $125 million in cuts to state spending, secures new federal revenues through an assessment on hospital revenues, invests in growing the state's economy by expanding tax cuts for businesses and expanding worker training programs and authorizes the spending of federal stimulus funds so work can begin immediately on transportation projects.
"I'm pleased to sign this important bill that protects Wisconsin families and puts us on the path toward economic recovery," Governor Doyle said. "This is a great example of government working quickly. This bill lays critical groundwork for getting our state's economy back on track and creates a platform for putting federal stimulus dollars to work quickly and efficiently. "
Specifically, the economic recovery plan:
- Cuts $125 million in state spending, including $500,000 by the State Legislature.
- Reduces health care costs and expands access to health care by securing $900 million in new federal revenue through an assessment on hospital revenues;
- Attracts new business and creates jobs for Wisconsin workers by expanding eligibility access to tax credits;
- Pre-approves $300 million in spending of federal stimulus funds in order to immediately put Wisconsin people to work on transportation projects that modernize state infrastructure.
Legislative Fiscal Bureau forecasts have projected declining revenue in this year and the next. The November 20, 2008, budget deficit forecast of $5.4 billion by June 30, 2011, has now increased to more than $5.7 billion. This figure represents over 18 percent of general fund appropriations.
Governor Doyle thanked Speaker Sheridan, Senator Decker, Senator Miller, and Representative Pocan for their work on the bill.
