[Reprinted from the Wisconsin State Journal. -Ed.]
By Mike Flaherty
Legislative reporter
After nine months of political infighting, Gov. Tommy Thompson finally signed Wisconsin's $3 billion transportation budget Wednesday, clearing the way for the construction of new highways and the repair of existing ones.
But he vetoed $40 million in borrowing proposed by the Legislature as a way to pay for more highway projects without raising taxes.
Thompson said he was delighted to finally sign the bill after more than a half-dozen versions of the legislation were debated-- and rejected-- by a coalition of Democrats and conservative Republicans in the Legislature who protested Thompson's plans to increase gasoline taxes.
Republican lawmakers, led by Rep. Ben Brancel, Endeavor, and Sen. Tim Weeden, Beloit, wanted to borrow $173 million over the next two years-- $40 million more than the governor wanted-- to fund more highway projects.
Thompson said it didn't make good financial sense to go so heavily into debt. At the rate of borrowing proposed by lawmakers, he said, the state would be spending nearly all of its borrowed money just to pay interest on past borrowing. Under the Brancel-Weeden plan, debt repayment over two years would be $127 million on total debts of $800 million.
Thompson also rejected proposing new tax increases when the Legislature returns in January. Thompson proposed a budget that would have added about 4 cents to the state's 23.4-cents-per-gallon tax.
"I've got spears in my back and spears in my front," he said, referring to the battles over the tax proposals.
Still, he added, gasoline taxes could still rise in the future. The state's highway maintenance funds aren't rising as fast as inflation, he said, so he's appointing a commission to find ways raise more money to maintain roads, provide local transportation aids and fund mass transit programs.
Thompson said the budget reduces transportation operations by $32 million over the two-year period at ends June 30, 1997.
As expected, the new transportation budget increases money for Madison Metro's bus system. But budget provides $300,000 less than the city expected under the former transportation budget rules. Because of the loss of that money, along with $475,000 in federal money, Madison Metro announced fare hikes this week.
Thompson also vetoed a special tax break that primarily benefited one person in the state. The provision, championed by Thompson's friend, lobbyist Bill Gerrard, would have exempted railroad cars and engines owned by Wisconsin Central Railroad.
Paper mill workers argued the railroad needed the tax break to remain competitive with the trucking industry. But Sen. Joe Wineke, D-Verona, protested loudly that the $3 million annual tax break would primarily benefit Ed Burkhardt, the president and CEO of the railroad, who owns $71 million worth of stock and is paid more than $500,000 a year.
Thompson said he opposed the special tax break for Wisconsin Central because it would set a preceent for other industries.
The transportation budget signed into law Wednesday will:
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