The State of Wisconsin faces a $1.6 billion budget deficit over the next two years, and the battle over how to balance the budget is about to begin.

Last fall, Governor Doyle asked all state agencies to prepare a budget request with a ten percent cut. Meanwhile, he'll release his budget this Tuesday night during an address to the legislature.

A big part of that balance may lie in cutting more state workers. Some Republicans and Democrats disagree over whether that will actually save money in the long run.

“The governor talked about making efficiencies at the state level. That's where Republicans and Democrats can come together on–ways that we can do the same quality of service from the state efficiently and effectively–new ways to do business,” says republican Rep. Brett Davis of Oregon.

“I think it's very important when we look at state government not to cut jobs if that work just gets done by outside contractors. Outsourcing those jobs usually costs more not less,” says democratic Rep. Spencer Black of Madison.

After the Governor releases his budget it will need to be approved by the legislature. This process will most likely take months to complete.