US THESE ARE WISCONSIN AREAS WHERE WE SHOULD BE ABLE TO FIND COMMON GROUND.

>> Frederica: THE STATE BUDGET IS NOW IN THE HANDS OF THE REPUBLICAN-CONTROLLED LEGISLATURE.

NEXT WE TURN TO THE CO-CHAIR OF THE POWERFUL BUDGET WRITING COMMITTEE, REPRESENTATIVE MARK BORN.

WE SAT DOWN WITH HIM AT THE STATE ALCOCAPITOL AND ASKED ON REACTION TO THE BUDGET.

>> IT'S DISAPPOINTMENT.

IT'S REALLY NOT A REALISTIC BUDGET, UNSUSTAINABLE, MASSING SPENDING, TAX INCREASES IN A VARIETY OF AREAS AND VARIETY OF WAYS.

GROWING GOVERNMENT, NEW PROGRAMS EVEN FINDING A WAY TO WORK A NEW AGENCY IN.

THAT WAS A SURPRISE FOR SOME OF US.

SO DISAPPOINTING.

CERTAINLY NOT HEADING IN THE RIGHT DIRECTION.

NOT ONE WE CAN REALLY WORK WITH OR WORK FROM.

WE HAVE TO START FROM CURRENT LAW AND BUILD FROM THERE ON A BUDGET THAT WORKS FOR THE PEOPLE OF WISCONSIN.

>> Frederica: WHAT WILL YOUR SPENDING PRIORITIES BE?

>> I THINK NO SURPRISE TO FOLKS BOTH BECAUSE THE PEOPLE OF WISCONSIN ARE WHO TELL US WHAT THE PRIORITIES SHOULD BE BUT ALSO IT'S BEEN PRETTY CONSISTENT SEVERAL YEARS NOW THERE'S REAL TOP PRIORITIES WE KEEP BUILDING ON FROM EDUCATION TO INFRASTRUCTURE INVESTMENTS TO HEALTH CARE.

I THINK THERE'S MAYBE ONE SLIGHTLY NEW ONE THIS TIME THAT'S BEEN GETTING A LOT OF DISCUSSION AND WORK DONE ON IT ALREADY TO LOOK FOR WAYS TO FUND LOCAL GOVERNMENTS IN A BETTER WAY OR TO MAKE MORE SUSTAINABLE LONG-TERM FUNDING AND IT'S CERTAINLY ONE WE'RE WORKING ON.

I THINK MAYBE HOPEFULLY IT'S AN OPPORTUNITY FOR COMPROMISE.

WE'LL SEE.

THE GOVERNOR CERTAINLY APPROACHED IT IN SOME WAYS WE WILL NOT.

WE'RE NOT GOING TO INCREASE TAXES IN CITIES ACROSS WISCONSIN IS PART OF HIS PLAN.

THAT'S NOT THE MODEL.

BUT INVESTMENTS OF NEW SUSTAINABLE FUNDING SOURCES WITH CHANGES.

WITH REFORMS AND ACCOUNTABILITY AND INNOVATION.

>> Frederica: AS TO THAT COMMON GROUND AROUND SHARED REVENUE AND MONEY GOING BACK TO LOCAL GOVERNMENTS.

THE GOVERNOR HAS ANNOUNCED HE WOULD LIKE TO TAKE 20% OF THE STATE'S SALES TAX AND RETURN IT TO LOCAL GOVERNMENTS.

AND HE CREDITS THE REPUBLICAN LEGISLATURE WITH COMING UP WITH THAT IDEA.

IS THAT THE PLAN?

>> THE DETAILS ARE NOT SETTLED.

THAT'S WHAT I WAS REFERRED TO.

HE TOOK DIFFERENT APPROACHES WITH TAX INCREASES COUPLED WITH THE 20% AND THINGS LIKE THAT.

WE'RE NOT GOING TO DO THAT.

WE HAVE TO MAKE SURE IT'S FOCUSSED ON INNOVATION AND THE FUTURE AND SOME REFORMS NOT JUST THE SAME OLD, SAME OLD AT A LOCAL LEVEL BUT STILL, NEW SUSTAINABLE FUNDING FOR THE FUTURE TO HELP LOCAL GOVERNMENTS PROVIDE SERVICES THEY NEED TO PROVIDE IN OUR COMMUNITIES.

THERE'LL BE SOME PARALLELS BUT THERE'S DEFINITELY GOING TO BE DIFFERENCES TOO.

>> Frederica: IN THE PAST REPUBLICANS HAVE TALKED ABOUT BEING IN FAVOR OF SOME KIND OF FAMILY LEAVE AND THAT WAS SOMETHING THAT WAS ANNOUNCED IN THE GOVERNOR'S BUDGET ADDRESS.

ARE YOU IN FAVOR OF THAT OR HOW MIGHT YOUR MODEL BE DIFFERENT?

>> I THINK IT'S UNLIKELY THERE WOULD BE A BRAND NEW PROGRAM OF THAT LEVEL IN A STATE BUDGET.

THAT'S SOMETHING THAT SHOULD RUN THROUGH LEGISLATION THROUGH THE COMMITTEE PROCESS, DEBATE, DISCUSSION WITH COMMUNITIES OF INTEREST AND CERTAINLY THE PLAN HE PUT FORWARD IS IS POLICY.

>> Frederica: YOU TALKED ABOUT PRIORITY BEING K-12 EDUCATION.

HE WANTS TO BOOST SPENDING $2.6 BILLION.

WHAT'S YOUR NUMBER?

>> OVER NUMBER WILL BE DECIDED IN THE NEXT FEW MONTHS IN THE BUDGET DELIBERATIONS.

THAT'S HOW IT WORKS.

I WON'T HAVE A NUMBER TODAY BUT I KNOW WE'LL INVEST IN EDUCATION.

>> Frederica: WHAT'S YOUR REACTION TO THE NEARLY $300 MILLION TO THE BREWER STADIUM?

>> LIKE THIS THE DEVIL'S IN THE DETAILS AND HAVE TO DO WORK TO LOOK AT THIS AND NEED TO MAKE IMPROVEMENTS TO THE GOVERNOR'S PLAN FOR SURE AND HAVE DISCUSSION ABOUT THAT BUT CERTAINLY I THINK FOLKS GENERALLY WANT TO WORK TOWARDS KEEPING THE BREWERS IN WISCONSIN AND MILWAUKEE HOPEFULLY FOR A LONG TIME.

>> Frederica: AS TO TAX CUTS, GOVERNOR EVERS CUTS ABOUT $1.5 BILLION WITH A 10% CUT FOR EARNERS MARRIED EARNERS UP TO $150,000 -- UNDER $150,000.

WHAT'S YOUR REACTION TO THAT, FIRST OF ALL?

>> THE SIMPLE REACTION IS OVER ALL TAX CUTS ARE GOOD BUT IT CUTS TAXES IN ONE SPOT AND RAISE AS A BUNCH IN OTHER AREAS.

IT'S REALLY NOT TAX REFORM.

IT'S NOT REALLY TAX CUTS.

IT'S MORE OF WITH A LITTLE DO A FEW NICE THINGS HERE AND A BUNCH OF THINGS THAT ARE THE WRONG DIRECTION ON TAX POLICY IN OTHER AREAS AND YOU WON'T SEE A REPUBLICAN BUDGET THAT WILL LOOK LIKE THAT WHEN IT COMES TO TAX POLICY.

>> Frederica: WILL WE SEE A FLAT TAX IN THE REPUBLICAN BUDGET?

>> I THINK FOR A WHILE NOW WE'VE BEEN MOVING IN THAT DIRECTION AND THAT'S A GREAT GOAL.

WHETHER OR NOT WE'LL GET TO A FLAT TAX IN THIS BUDGET REMAINS TO BE SEEN BUT I THINK WE'LL CONTINUE TO DO TAX REFORM THAT MOVES US IN THAT DIRECTION AND MAKES US MORE COMPETITIVE IN THE MIDWEST WITH STATES HAVING A FLAT TAX.

>> Frederica: IF YOU CAN'T COME TO AN AGREEMENT WHERE TO SPEND THE EXTRAORDINARY SURPLUS, WILL YOU ALLOW A LOT OF THAT TO ROLL OVER TO THE NEXT TIME?

>> WE HAVE AN ACCOUNT AND REVENUES.

I DON'T THINK YOU'LL SEE OUR BUDGET WITH HOLDING A LOT OF MONEY BUT SAVE FOR A RAINY DAY.

WE MAE KEEP MORE IN THE BALANCE OR THERE BUT WE WON'T KEEP SURPLUSES IF THE GOVERNOR'S VETO CAUSES THAT THAT'S HIS DECISION THEN.

WE'LL SEND HIM A BUDGET THAT'S REASONABLE AND INVESTS IN PRIORITIES AND RETURNS MONEY TO THE TAXPAYERS WITH INFLATIONARY TIMES AND SOME OF HIS VETOES LEFT MONEY IN THE STATE SAVINGS ACCOUNT, SO TO SPEAK, THEN THAT WILL BE WHAT HAPPENS BUT THAT'S