NOW HOW WE'LL CRAFT THE BUDGET.

>> Frederica: REPRESENTATIVE MARK BORN THANK YOU VERY MUCH.

>> THANK YOU.

>> Frederica: WE SPOKE WITH JASON STEIN RESEARCH DIRECTOR OF THE WISCONSIN POLICY FORUM FOR HIS TAKE ON THE BUDGET NUMBERS.

WHAT STANDS OUT IN THIS ADDRESS?

>> THE INCREASE FOR A WHOLE VARIETY OF PRIORITIES.

STARTING WITH SCHOOL AND HEALTH CARE AND THINGS WE TRADITIONALLY EXPECT AND THEN THROW IN MORE THAN $290 MILLION FOR MILLER PARK AND FOR MEDICAL LEAVE AND BROADBAND.

THE NON-TRADITIONAL PRIORITIES EASILY ABOVE $1 BILLION JUST THOSE THREE.

>> HOW DOES IT COMPARE TO OTHER BUDGETS?

>> NOTHING LIKE WE'VE SEEN BEFORE.

IT'S UNPRECEDENTED.

IT ALLOWS FOR BOTH PARTY TO THINK BIG ON THE TAX CUT OR SPENDING SIDE.

AT THE SAME TIME A LOT OF SUBSTANTIAL INCREASES THAT WILL LOWER THE STATE'S RESERVES SUBSTANTIALLY WHICH IS APPROPRIATE BUT I THINK THE SPENDING HAPPENING MAY BE DIFICULT TO SUSTAIN IN THE NEXT BUDGET.

>> Frederica: AS TO THE TAX CUTS THE GOVERNOR REGARDS THEM AS TAX CUTS FOR THE MIDDLE CLASS OPPOSED TO WHAT WE UNDERSTAND REPUBLICAN BUDGET WRITERS ARE TRIND WHICH MAY BE A FLAT TAX.

HOW DO THE PLANS COMPARE?

>> THE FIRST THING IS THE GOVERNOR HAS A MIX OF TAX INCREASES THAT WILL PRIMARILY FALL ON UPPER INCOME EARNERS AND TAX CUTS FOR MIDDLE AN LOW INCOME EARNERS.

WHILE THE REPUBLICAN PLAN PUTS FORWARD A LARGE TAX CUT THAT ALSO WOULD BE DIFFICULT TO SUSTAIN IN FUTURE YEAR AND RAMP UP TO $5 BILLION A YEAR.

>> Frederica: DO YOU THINK THERE'S MORE COMPROMISE TO BE HAD IN THE BUDGET?

>> THE GOVERNOR'S BIG SIGNATURE PROPOSALS YOU WOULD NOT EXPECT THEM TO GO THROUGH AS PASSED BUT IN AREAS FOR AID FOR LOCAL GOVERNMENT WE CALL SHARED REVENUE AND IN PERHAPS MILLER PARK OR THE BREWERS STADIUM AND SOME OF THOSE AREAS REPEALING THE PERSONAL PROPERTY TAX YOU COULD EXPECT TO SEE SOME GIVE