Wis. Lawmakers Pass Long-Overdue Budget

The agreement now goes to Democratic Gov. Jim Doyle, who is expected to sign it.

He praised the compromise after the vote, saying it streamlines government, holds the line on taxes and reflects the state's values.

The Assembly passed the budget 60-39. The Democratic-controlled Senate passed it on a partisan 18-15 vote.

"We did find middle ground and we are able to pass a budget that puts Wisconsin families first," said Assembly Speaker Mike Huebsch, a Republican.

Under the compromise deal, cigarette smokers and anyone who drives or owns a car will have to pay more. But hospitals and oil companies escaped higher taxes.

Republicans who control the Assembly blocked a deal for months, arguing that taxpayers couldn't afford more than $1 billion in tax increases backed by Doyle and Democratic lawmakers.

Wisconsin's budget was due July 1, and 114 days later Wisconsin remained the only state without a new spending plan. Current tax and funding levels remained in place during the impasse.

Under a deal reached Friday and passed on Tuesday, Doyle and Democrats agreed to drop a 0.8 percent new tax on hospitals and a 2.5 percent oil company tax.

Democrats agreed to a $1 per-pack cigarette tax increase instead of $1.25.

Both sides agreed to raise fees that will make it more expensive to register and title a car and get a driver's license.

Doyle got one of his major priorities: making health insurance available through the state to 98 percent of Wisconsin residents. All children will be covered, regardless of their family's income.

Lawmakers quietly slipped a provision into the budget that allows liquor and grocery stores to hand out free samples of liquor.

Each customer could have up to three samples of half an ounce or less, or about a shot-and-a-half. Stores could offer the samples between 11 a.m. and 7 p.m.

Many stores have expressed reservations about allowing liquor samples.

Doyle, who has not warmed to the idea, could veto it.

"We are not commenting on vetoes at this time," Doyle spokesman Matt Canter said.