Gov. Doyle announced the general outline of his plan yesterday for closing the new $1.6 billion hole in the state budget caused by the sharp drop in tax collections. It calls for deep cuts in state agency budgets, furloughs and layoffs of state workers, and a 2.5 percent cut in state aid to schools, counties and municipalities.

The Governor reiterated Thursday that he would not raise taxes beyond the targeted changes he proposed back in February, when the deficit was much smaller. He was joined at the press conference by the co-chairs of the Joint Finance Committee, who have agreed to the general framework of the Governor’s plan, though it appears that many details still need to be resolved.

The Governor and legislative leaders said repeatedly that the new budget plan will protect Wisconsin’s “core values” and “core services,” including education, health care and public safety. And they have suggested that safety net services for disadvantaged families and vulnerable children would be protected. Yet it’s unclear at this point whether the sketchy plan they have unveiled will truly protect those services and meet the needs of the growing ranks of unemployed parents and their children as the recession deepens.

The budget cuts are likely to reduce the number of intake workers for public benefit programs at a time when caseloads and new applications are soaring and far surpass the ability of the current intake workers to keep up. Another concern is that it appears that the state plans to keep funding for W-2 benefits and services at the same level as two years ago, when the unemployment rate was half its current level, even though the economic stimulus bill provides 80 percent federal funding for increased W-2 spending.

One source of great frustration for anyone who hopes to contribute to the public discourse regarding how to balance the budget is that the specific cuts and their consequences aren’t clear. It could be weeks or months before we learn how agencies will allocate the new 5 percent cuts they have been directed to make. Since some areas can’t be cut (because of federal mandates, for example), other areas will take much bigger hits. The same is true at the local level, and it will take even longer for local governments to decide where the deep cuts will be made in K-12 education, county human services, and municipal services.

In the weeks ahead, we urge policymakers to create a transparent budget process, which enables the public to understand what’s being cut and what the alternatives are, including revenue options. The impact of the new cuts that are being proposed is likely to far surpass the negative consequences of the previously proposed cuts, and the public deserves to understand those impacts before policymakers finalize their budget-balancing choices.