MADISON, Wis. | After focusing for weeks on his proposal to strip public employees of most collective-bargaining rights, Wisconsin 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.
Mr. 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 would soften his demand to reduce their power at the negotiating table.
“This is a reform budget,” Mr. 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.”
Mr. Walker’s legislation has drawn tens of thousands of demonstrators to the Capitol over the last three weeks, and tensions were still high as the governor outlined the budget during a joint session of the Legislature convened under heavy security. Assembly Democrats refused to stand as the governor arrived to speak.
Mr. 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 the consumer-advocacy group Citizen Action of Wisconsin.
The governor released his two-year spending plan in part to support his argument that public-employee concessions are essential to confront a projected $3.6 billion budget shortfall. His proposal to eliminate most collective bargaining remains in limbo after Senate Democrats fled the state to prevent a vote.
Republican Senate Majority Leader Scott Fitzgerald met Monday in Kenosha with some of the missing Democrats and discussed terms under which they could return. No agreement was reached.
The budget will put tremendous pressure on schools and local governments.
Mr. Walker’s budget includes a nearly 9 percent cut in aid to schools, which would amount to a reduction of nearly $900 million. The governor also proposed requiring school districts to reduce their property-tax authority by an average of $550 per pupil - a move that makes it more difficult for schools to make up the lost money.
Additionally, cities would get nearly $60 million less in aid, an 8.8 percent cut. 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.
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