By David A. Wise
WisBusiness.com
MILWAUKEE — State agencies should expect to see flat or reduced budgets, state grants will shrink and public employees shouldn’t expect a raise in the next budget, Gov. Jim Doyle told business and investment leaders at an economic forum today. But he also said that the stimulus plans presented an opportunity for the state to do some “really big things.”
Doyle said he believes there is strong support in the incoming administration and Congress for broadly defining what constitutes infrastructure in a possible federal stimulus package to include rail, airport, harbor and other improvements.
“This is an opportunity for us to do some really big things,” Doyle said, and listed projects such as the KRM commuter rail line, a possible high-speed rail line throughout the Midwest, and a “smart” electrical grid system.
“I’m actually really looking forward to this year,” Doyle said, “because I think that despite these enormous challenges, this opportunity that we have is not an opportunity that comes along very often, and it may not come along in another generation, of really doing some major things in Wisconsin to improve this state and really get our economy moving again.”
As far as the state budget, Doyle said there are some areas that can’t be held flat, but that for most departments “I’m telling everybody if you come out of this where you were two years ago, you should be very, very happy.”
Doyle said that even areas he wants to protect, such as K-12 and higher education, medical expenses programs, corrections, and funding for local fire and police, can expect flat or reduced budgets.
“All of those are going to see, if nothing else, held even, or some cuts; everybody’s going to have to tighten their belts,” Doyle said. “Even those areas where we have to protect priorities are not going to come out unscathed.”
In the wake of Quad/Graphics announcement today that it would cut 550 jobs (with 400 of those being in Wisconsin), Doyle said he expects more layoffs in other companies going forward. What concerns him is seeing companies that were recently planning expansions now pulling back.
“Quad/Graphics is a great example of a company that’s been expanding; it has had good expansion plans and good growth plans,” Doyle said. “And now because of where the economy’s gone they’ve had to make some really difficult adjustments.”
Quad/Graphics executives spoke with Doyle Friday about the company’s plans and said they believe the company is strong and will be in a good position when the economy rebounds.
On the topic of his own state budget, Doyle said he was reluctant to give specifics about planned cuts, though he did say it is “likely that some of the really high levels of service that we provide” are going to see some cuts.
“I’m being a little vague on this because if I mention one we will have this huge political fight over that and I’m holding off until I present the whole budget in February and everybody sees how it all balances,” Doyle said.
For the coming fiscal year, groups that rely on state grants can expect a cut.
“If it’s state funds they depend on, they better just sort of assume that at best they’re going to get what they got in the last budget and they may well see a cut,” he said.
Public employees should expect flat salaries unless contracts already in place mandate increases, Doyle said..
“I don’t think anybody should be expecting raises over the next two years,” Doyle said. “I don’t think that should be any secret to people.”
Doyle said he plans to continue cuts to the number of state workers, but that he want to make those cuts through attrition rather than layoffs.
“It’s a little counterproductive to on the one hand be saying we want to be creating jobs and then on the other eliminating a bunch of jobs,” Doyle said.
