Doyle announces plan to prevent deficit

Patrick Marley and Stacy Forster:

Gov. Jim Doyle today offered a $527 million package to repair the state budget with cuts and delays to new programs, as well as a new tax on hospitals and a transfer of $243 million from the state’s transportation fund.
The budget that runs through mid-2009 is $650 million short, though Doyle already whittled that down through austerity measures, including delaying paying off some debt.
The budget is short because the slumping economy has led the state to collect fewer taxes than projected.
“Just like any real solution to a budget gap, this plan cuts spending and looks for good sources of revenue,” Doyle said, adding that it protects such priorities as health care, education and job creation.
Although Doyle said he wanted to avoid some of last year’s budget fights, he reopened one by introducing the tax on hospital revenue.