UPDATED Friday, May 16 --- 11:25am

MADISON, Wis. (AP) -- Gov. Jim Doyle has used his partial veto power to order state agencies to cut deeper and ensure schools will get promised aid payments on time.

Doyle signed a bill Friday designed to fill a $527 million deficit in the current state budget brought on by the faltering economy. The bill called for $69 million in cuts to state agencies, delaying $125 million in school aid payments and refinancing the state's tobacco bonds to capture $209 million.

The governor used his partial veto power to order state agencies to cut another $200 million and wipe out another $180 million for road maintenance legislators tucked into the bill. He also vetoed the delay in school payments.

Copyright 2008 by The Associated Press. All Rights Reserved.

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UPDATED Wednesday, May 14 --- 4:05pm

MADISON, Wis. (AP) -- Democrats and Republicans alike in the state Assembly voted to pass a bill fixing the $527 million budget shortfall.

The measure now heads to Gov. Jim Doyle, who is expected to issue a number of vetoes.

The budget passed the Senate on Tuesday.

The Assembly voted 51-46 to pass it Wednesday.

Democratic and Republican leaders both say the plan is not perfect, but it's needed to balance the budget. Assembly Speaker Mike Huebsch says everyone would have liked changes, but the proposal does what is necessary to move the state forward.

Doyle is expected to issue his vetoes in a matter of days.

Copyright 2008 by The Associated Press. All Rights Reserved.

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UPDATED Monday, May 12 -- 5:07pm
By Zac Schultz

Madison: Legislative leaders announced today they've reached a compromise on the budget repair bill.

"We're cutting unnecessary spending, we're tapping into our savings accounts, we're delaying payments, we're doing what we need to do in order to make ends meet," says Rep. Mike Huebsch (R-West Salem), the Assembly Speaker.

The state has a $526.88 million deficit.

Under this plan the state would make $69 million in cuts, they would borrow $97 million from reserve funds, the state would get $209 million by refinancing the tobacco bonds -essentially taking a big payout now but losing money in the long run -and they would delay $125 million in school aid payments next June. The schools would get the money in July, but the state wouldn't have to pay it off until the next budget.

Governor Doyle says the school aid delays will likely be vetoed. "We can't solve our budget challenge by pushing off $125 million in school aid payments. That will just make our jobs much tougher to do next year."

Doyle also opposes refinancing that much of the tobacco bonds. He'd rather see more cuts in state government, and possibly borrow money from the transportation fund used to build roads.

The conference committee passed the bill on a 5 to 1 vote. The Assembly and Senate are expected to vote later this week.

Republicans in the Assembly know they'll need Democratic votes to get this passed. "I know what the Speaker's expectations are for votes, we're going to meet at the fence and pass this when it comes to the floor this week," says Rep. Jim Kreuser (D-Kenosha), the Minority Leader.

Once it goes to the Governor, he's likely to veto parts or all of it. "What exactly my options are when it comes in front of me remains to be seen."

There are some new laws included in the budget repair bill, the biggest is adding cell phones to the do not call list.

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UPDATED Monday, May 12 --- 12:05pm

MADISON, Wis. (AP) -- A deal to solve Wisconsin's $527 million shortfall relies on a $125 million delay in aid payments to schools but not a new hospital tax advocated by Gov. Jim Doyle and Democrats.

The Legislature is to vote later this week on the deal announced Monday.

It also includes $69 million in cuts to state government. That's far less than the $250 million Assembly Republicans wanted.

And there are no assurances that the plan will be enough to avoid additional cuts or changes through the rest of the two-year budget that ends June 30, 2009.

Assembly Minority Leader Jim Kreuser says the deal comes in time to allow spring and summer road projects to proceed without delay.

Copyright 2008 by The Associated Press. All Rights Reserved.

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Posted Monday, May 12 --- 10:05am

MADISON, Wis. (AP) -- Wisconsin lawmakers say they have reached a deal to solve the state's $527 million budget shortfall.

Democratic Senate Majority Leader Russ Decker's office says a deal has been reached and details will be announced at a late Monday morning news conference in the Capitol

Republican Assembly Speaker Mike Huebsch and Democratic Assembly Minority Leader Jim Kreuser of Kenosha are expected at the news conference.

Gov. Jim Doyle's spokeswoman did not immediately return a message seeking comment.

Doyle had warned that without a deal by Tuesday, up to $260 million in bids for summer road projects could be in jeopardy.

Copyright 2008 by The Associated Press. All Rights Reserved.