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 Wisconsin Governor Jim Doyle and his colleagues in the State Legislature are beleaguered by a . billion budget shortfall. Doyle’s address to the Assembly and Senate on February 17, 2009, sounded a stark tone for the state as it heads into its next biennial budget. In an interview with CCN magazine, Governor Doyle said about this speech, “I wanted to let people know, that in the budget, we were going to have to make tough choices, and deep cuts.”
The governor’s 2009–2011 budget hinges on government-wide cuts, federal funds and a reprioritization of state money. Doyle calls for a $2.2 billion cut in the state budget by enacting a one percent decrease in funding for every department. The budget also utilizes more than $2 billion in federal funds from the American Recovery and Reinvestment Act of 2009 to pay for transportation projects and education. “Here in Wisconsin, we are able to increase our funding for transportation by 20 percent in this budget,” notes Doyle regarding the federal stimulus bill.
The third leg of the budget, an adjustment in taxes and credits, has drawn the most criticism from business groups and opponents. Governor Doyle supports an increase in capital gains taxes, a tax increase for the upper one percent of earners in Wisconsin and the repeal of tax breaks to support companies who keep jobs in the United States. Doyle defends these steps as integral to saving $565 million over the next two years. Business owners complain most vigorously about the “combined reporting” provision in the budget that would tax revenues on out-ofstate subsidiaries of Wisconsin-based businesses.
Governor Doyle claims these measures are necessary to trim down the $5.94 billion budget deficit in Wisconsin. In addition to aforementioned spending cuts, Doyle’s plan uses $2.1 billion of federal money, $1.35 billion in revenue adjustments and $245 million in miscellaneous steps like restructuring state debt payments. e governor noted in our exchange that “federal economic recovery funds are not being used to fill a budget gap” because his plan “recognizes that the federal spending is one-time assistance to the state.” Doyle is looking to the future of Wisconsin’s budget by “using the stimulus money wisely and holding firm on our future spending commitments.”
Th e Democratic governor will be aided in the budgeting process by Democratic majorities in the Assembly and Senate. e Democrats took back the Assembly for the first time in 1994 last fall and expanded Senate control, giving Governor Doyle some help in his budget-cutting efforts. “Having a Democratic Assembly and Senate definitely changes the dynamic,” Doyle stated, elaborating on this point by saying, “Many Republicans for the past several years had taken the stance that they were just going to say no to everything regardless of the merits.” While Senate Majority Leader Russ Decker and Assembly Speaker Michael Sheridan may have their own agendas, Democrats in Madison will need to be unified to navigate through difficult economic times.
Th e 2009–2011 Wisconsin state budget may make serious cuts in state programs but there are a few programs cheered by state residents and businesses. Doyle supports a $5 million per year tax credit for research and development, an authorization for Regional Transit Authorities to charge up to one-half percent in sales taxes to fund commuter rail and $2.4 million to add another car to the Milwaukee-Chicago Amtrak line. e governor cited legislation supported by both Assembly and Senate Democrats to help kids with autism get proper treatment. His concern is that insurance companies are shirking responsibility for autism treatments and “some families are paying $40,000 or $50,000 per year for the treatment.” This program demonstrates an emphasis on health insurance among state legislators, with Doyle stating, “I feel confident with this new legislature we can make sure that autistic kids get the care and support they need and deserve.”
The bleak economic outlook in early 2009 may have repercussions on the next gubernatorial election in 2010. Governor Doyle was coy in discussing a potential third term by simply saying “I don’t have to make that decision yet” but he has $1.5 million in the bank. Doyle’s fundraising advantage on potential contenders like Milwaukee County Executive Scott Walker and former Wisconsin Republican Chair Rick Graber may embolden the current governor in his decision. Doyle has also increased his mandate over time, winning by four percent against Scott McCallum in 2002 and seven percent against Mark Green in 2006. A compelling reason for Doyle to run again in 2010 is to see that his agenda is carried into the next biennial budget.
Governor Doyle may be persuaded to run for a third term to continue his support for President Obama. Doyle campaigned vigorously for Obama in Wisconsin, helping the Democratic candidate defeat John McCain in the state 56 to 43 percent. After Obama’s election on November 4, 2008, Doyle’s name was bandied about for an ambassadorship in the new administration. “I have said all along that the job I want is to be Governor of Wisconsin,” Doyle said in response to questions about federal appointment rumors. He sees a potential partnership with President Obama as a positive for Wisconsin, claiming, “we can put in place job creation programs, we can work together on energy policy, and we can make sure that our schools are the best in the world.”
This partnership was forged in Doyle’s mind by his one-on-one interactions with Obama during the campaign. “President Obama is a great leader because he really takes the time to listen to people and thinks through decisions,” the governor answered when asked about his personal relationship with the president. He sees a dovetailing of common interests with Obama, noting the president’s focus on “creating jobs while maintaining our country’s priorities like a good education system, access to affordable healthcare and clean energy.” Doyle may have foreshadowed his decision about 2010 in his promise to “do all I can in Wisconsin to support his efforts in all these areas.” ¶
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