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Scott Walker May Want to Be President, But He Has to Fix Wisconsin's Budget First

The governor's planned cuts to address a billion-dollar shortfall are proving unpopular, even among many Republicans.The final outcome of a struggle over the next few weeks will define the governor's image and could help determine whether he has any chance at all at the White House.

By David Lightman

He rocketed to national fame _ and the top tier of Republican presidential hopefuls _ on his reputation as a gutsy leader who stood up to the unions, cut spending and cut taxes, all while balancing the budget.

I saved Wisconsin, Scott Walker says to cheers. And I can save Washington.

Except the two-term governor may have saved Wisconsin only for a while. The mood among budget-writers these days is gloomy in the cavernous stone and marble chambers of the state capitol. State lawmakers are scrambling this week to avoid big cuts to popular programs as they painstakingly try to craft a balanced budget. Walker wants big reductions in school aid, changes to the university system and more, but his remedies to make up a projected billion-dollar shortfall are proving unpopular, even among many Republicans.

The final outcome of this struggle over the next few weeks will define the governor's image in the crucial months ahead and could help determine whether he makes it to the White House.

Party loyalists around the country now know this much: He made tough decisions during 2011, his first year in office, that stabilized the state's budget. He took on powerful special interests and stood up to often ugly protests, including a virtual occupation of the Capitol. He won approval of big corporate, income and property tax cuts. And then he survived two attempts to unseat him.

Now, though, comes the wrenching second act, sustaining that success in a fiscal environment where revenue is lagging and constituents demand money for favorite programs.

If Walker is seen as presiding over budget turmoil, he'll have a tough time arguing he's uniquely equipped to deal with Washington, where Congress is badly polarized and its rules can drag out budget fights for months and even years. Nor does the federal government have to balance it budgets, as most states are required to do.

Walker stays upbeat and brash, vigorously defending his plan. He insisted to McClatchy in an interview that his $68.4 billion budget would produce a $499 million surplus. "The Legislative Fiscal Bureau specifically says in their report ... that the next budget ends with a $499 million structural surplus," Walker said.

The bureau does predict that surplus _ but not until the end of fiscal 2019. And it based that number on what could happen if Walker's budget is adopted intact, which is not going to happen.

Walker spokeswoman Laurel Patrick cited the bureau's estimates to contend "there is no imbalance." She noted the bureau said the governor's proposed budget for the next two years should produce a $123 million surplus by the end of fiscal 2017, and a $499 million surplus during the 2017-19 budget.

There's another voice in this, though. The Legislature's Joint Committee on Finance, a 16-member bipartisan panel, is meeting daily to grapple with the budget problem.

Republicans dominate the panel and uniformly offer praise for Walker, but they also show signs of defying him. They rejected his education cuts. Some are considering new ways to raise money. Republican leaders said no to Walker's plan to revamp the state's long-term care system for the elderly and disabled. And the Republican-run Assembly approved changes to a food aid program that will cost more money.

State Rep. Robert Brooks, a Saukville Republican, acknowledged the complaints about Walker's proposed plan.

"We may have a crap budget," Brooks said in the Assembly. "But we're going to make it better."

Republicans continue to praise Walker, but they are uneasy about the budget choices they face. "We have to make difficult decisions that affect real people. That's tough for everyone," said Rep. Adam Neylon, a Republican from suburban Milwaukee.

Constituents in his district aren't buying big school cuts, nor are many other Republicans _ in fact, they want to give more school aid. "A zero increase will be hell to pay when you go home," said Sen. Luther Olsen, a Republican from Ripon. The Joint Committee on Finance has come up with the money by using an accounting gimmick.

On Thursday, the committee agreed to reverse Walker's cuts in the state's SeniorCare prescription drug benefit.

Taxes? Rep. Kathleen Bernier, a Chippewa Falls Republican, mentioned the dreaded word. She's discussing allowing local governments to impose a half-cent sales tax to repair or build local roads. Others are toying with the idea of raising the vehicle registration fee.

The Joint Committee on Finance still has other spending cuts to tackle as it inches toward completing its work by the end of this week. The Legislature would then vote on a budget in June, and once it does, Walker is expected to announce his presidential intentions.

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