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BUDGET NEGOTIATIONS HUNG UP ON TWO ISSUES

Thursday, October 11th, 2007 -- 12:09 PM

A tax on hospitals and how much to raise cigarette taxes are the two biggest issues separating Republicans and Democrats working on a new budget.

Wisconsin is the only state without a budget. It is more than 14 weeks late.

The latest Republican offer to Democrats includes much of what Democrats want. But what it doesn't include is a new tax on hospitals or the full $1.25 cigarette tax increase. Republicans are offering just a 75-cent increase.

Governor Jim Doyle's spokesman Matt Canter says the latest offer shows that the two sides are close to a deal. But he says Republicans have caved to extreme members of the party by backing away from the cigarette tax.

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