GOP lawmakers divided on key budget issues

MADISON – Republicans who control the Legislature were so divided over the state budget Tuesday that they had to put off a key vote on whether to cut tuition at University of Wisconsin System schools. 

Assembly Republicans want to toss aside GOP Gov. Scott Walker’s plan to cut tuition by 5%, but Senate Republicans have not come to a consensus on the issue. That forced legislative leaders to cancel a vote on the issue before the Joint Finance Committee. 

"I’m just a little frustrated with the process being delayed because we can’t come to a decision between the two bodies. I respect their need to have those conversations, but we need to do this process — we would like to be done by the end of June so we can have a budget effective July 1," said Rep. John Nygren (R-Marinette), co-chairman of the committee.

If lawmakers miss their deadline for passing the budget, the state will continue on its current spending plan until they reach a deal. But significant delays on the budget would create a political headache for Republicans, given that they enjoy complete control of state government. 

Nygren said Republicans should not "allow a few people to railroad the process," but did not say which lawmakers he believes are holding up budget talks. 

Sen. Alberta Darling (R-River Hills), co-chairwoman of the committee, said she hoped Republicans could resolve their differences in time to vote on the issue on Thursday.

"I'll tell you tomorrow," Darling said when asked if she thought Republicans could come to agreement by then. "We're going to have to do something, aren't we?"

It's the second time GOP lawmakers have had to delay a vote on a major budget issue. Three weeks ago, Republican lawmakers could not agree on how much of a raise to give judges and have yet to resolve the issue.

The most significant issue separating Republicans is transportation, and they have been stymied by the issue for months. Assembly Republicans want to increase taxes on gasoline while deeply cutting income taxes; Walker has pledged to veto increases in taxes on gasoline; and Senate Republicans have not offered a plan on the issue. 

Sen. Lena Taylor (D-Milwaukee) said Walker contributed to the internal fight by giving legislators a budget that was "not thoughtful."

"I'm not surprised by the divide," she said.

Overall budget talks became more strained in recent days, with Walker threatening to veto the budget if lawmakers don't go along with his plans to keep a lid on property taxes. 

"Let me be clear, I will veto the entire budget if it includes an increase in property taxes for homeowners," Walker posted on Twitter on Monday. 

Tuition at University of Wisconsin schools has been frozen for undergraduates from Wisconsin since 2013, and Walker wants to trim it by 5% in the fall of 2018.

Taxpayers would make up the difference, so the university wouldn't see a budget cut. But Nygren said Republicans in the Assembly don't want taxpayers to further subsidize the UW System. 

"It's a no-go for us," he said. 

While the committee was unable to make headway on university issues, it did spend the afternoon addressing other budget issues. The committee is to continue its work for the coming weeks before handing off the budget to the Senate and Assembly. 

W-2 drug testing. With all Republicans in favor and all Democrats against, the committee voted 12-4 to adopt a Walker plan to expand drug screening and testing in Wisconsin Works, or W-2, a collection of state programs aimed at finding jobs for poor people.

It builds on a screening and testing system that GOP lawmakers approved two years ago. Those who fail drug tests are eligible for treatment and continue to receive benefits while they get drug counseling.

As of March, about 1,900 W-2 participants had been screened, 42 of whom were referred for testing. Of those who were tested, nine were referred for treatment, but no one has successfully completed treatment, according to the Legislative Fiscal Bureau.

The fiscal bureau estimates another 264 W-2 participants would be referred for testing and 56 for treatment each year under Walker's plan.

"Success sequence." On a unanimous vote, the committee threw out Walker’s plan to spend $1 million over two years on ads emphasizing the importance of fathers being involved in their children’s lives and promoting the “success sequence” — the notion that people are more likely to succeed in life if they graduate from high school, get a full-time job and wait to have kids until after they turn 21 and are married.

The ad campaign was recommended by a state commission that was bankrolled by the conservative Lynde and Harry Bradley Foundation. The foundation’s funding of the commission became public after Bradley documents were hacked and released publicly.

School attendance. More parents could face cuts to their W-2 benefits if their children repeatedly skipped school under a Walker proposal adopted 12-4 on party lines. 

State law allows benefits to be reduced if participants’ children aren’t enrolled in school. Walker's plan would expand the rule so that benefits could be trimmed when children are enrolled in school but frequently cut class.

Wisconsin Shares. The committee unanimously signed off on Walker's plan to allow families to stay in the Wisconsin Shares child care program as their incomes rise.

People now receive the subsidy up to 200% of the federal poverty level, which is about $41,000 for a family of three. The committee agreed to steadily scale back the benefit at that stage, rather than cut it off completely. 

Under the plan, recipients would lose $1 of the subsidy for every $3 their income rose above 200% of the poverty level. They would lose the benefit entirely when their income reached 85% of the state's median income. 

The plan would cost $4 million in federal funds over two years.

Human resources. Republicans on the committee approved a Walker proposal to move nearly 400 administrative jobs from a host of state agencies to the Department of Administration. The move is aimed at saving $2.8 million over two years by making the state's human resources functions more efficient.

Lillian Price of the Journal Sentinel staff contributed to this report.