MADISON – Governor Jim Doyle today announced more deep cuts in the state budget, as the state is facing a budget shortfall in the midst of the national economic crisis. The Legislative Fiscal Bureau next week will release figures that could show a deficit reaching $1.5 billion.
“What we all know is that reckless behavior on Wall Street – behavior that we’ve never embraced in Wisconsin – continues its negative effects through our state, our nation and now, the world,” Governor Doyle said. “Everyone is paying the price and suffering on some level. Here in Wisconsin we are facing tougher choices than ever about what level of state services we can sustain at a time when people need them most. I am fighting to protect the middle class, education, public safety and health care. These are my priorities. I don’t believe that we as a state will ever move forward unless we protect what is really important.”
The Governor is taking responsible steps under these extraordinary circumstances to address the problem.
· He will not propose new taxes.
· Governor Doyle’s budget already freezes pay and requires state employees to contribute more to retirement and health insurance. Today he said he will roll back 2% pay increases that were to be effective in June.
· All state employees, including those in the Governor’s office, will be subject to furloughs of 8 days per year. The Governor cannot be furloughed, so he will return pay for 8 days per year to the state.
· Governor Doyle said deeper cuts to state government spending will reach at least 5%.
· He is also directing all agencies to review all service contracts to reduce personnel costs.
