More bad economic news for Wisconsin - WKOW 27: Madison, WI Breaking News, Weather and Sports

More bad economic news for Wisconsin

MADISON, Wis. (AP) -- Gov. Jim Doyle says Wisconsin's budget deficit will reach $5 billion by the end of the next budget cycle thanks to declining tax collections and a national recession.

Doyle said Tuesday he remains committed to not raising general sales or income taxes to solve the problem. But he says he will push for previous tax increases that Republicans blocked in the Legislature, including a tax on hospitals and a tax on oil companies.

Doyle says there will certainly be job cuts in state government. He will introduce his budget in February.

The governor says an expected 1.5 percent tax collection increase for this fiscal year will be negative 2.5 percent. And next year he says the projection will be for a 1.5 percent drop.

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