The state Senate voted late Wednesday to narrowly pass a $62.5 billion state budget plan, which was about $300 million more than the budget plan approved by the state Assembly last Saturday.

The Senate plan includes authorization for the creation of regional transit authorities and the Milwaukee County sales tax, the delay of the Zoo Interchange project, and tax and fee increases.

In addition, the Senate version killed off Democratic Gov. Jim Doyle's plan to tax oil companies and repealed the state's tax break on capital gains, which would cost investors $485 million over two years.

Sen. Alberta Darling (R-River Hills) said, "This (budget) is a job killer. It's a

Wisconsin killer."

Sen. Ted Kanavas (R-Brookfield) said the capital gains tax change would be disastrous for small-business owners. "It drops a $485 million anvil right on their heads," he said.

The Senate bill passed 17-16, with Wauwatosa Democrat Jim Sullivan joining all of the Republicans in the Senate in voting against it.

Majority Democrats agreed to remove joint and several insurance liability from the budget but included language for mandatory auto insurance package. The Senate version also removed provisions to give undocumented immigrants driver licenses, and in-state tuition for the children of undocumented immigrants.

Sullivan, the lone Senate Democrat to vote against the budget, said, "There is some good in this budget," citing tax credits for job creation and capital expenditure for the University of Wisconsin System. "But in the end there were some things in here that I could not vote for and believe that I was keeping up with the promise I made two-and-a-half years ago to represent a district and not a party or ideology."

Sullivan is expected to face a significant Republican challenge in his district next year.

Milwaukee County Board Chairman Lee Holloway, along with Supervisors Michael Mayo Sr., Gerry Broderick and John Weishan, Jr., released the following joint statement in response to the Senate's action related to dedicated funding for mass transit, parks, cultural and emergency medical services in Milwaukee County: "The Senate's decision to approve an amendment that is largely consistent with the referendum approved by Milwaukee County voters in November is appreciated. In particular, we thank Sen. Lena Taylor (D-Milwaukee) for her support and leadership on behalf of Milwaukee County residents. Sen. Taylor and her colleagues in the Milwaukee County State Legislative Delegation that supported this initiative have demonstrated their understanding of the crucial long-term funding challenges facing Milwaukee County. Granting Milwaukee County this authority is a major step forward. Dedicated funding is the first step in modernizing the delivery of mass transit services in Milwaukee County and beyond. This action contributes to the development of a comprehensive transportation system in Milwaukee County. In addition, this authority also gives us the tools necessary to preserve our parks and cultural institutions for future generations."

The budget plan will next go to a conference committee of representatives from both the Assembly and the Senate, including members of both parties. For ongoing coverage, visit WisPolitics.com, a media partner of BizTimes Milwaukee, or check out BizTimes Milwaukee's daily roundup of headlines from newspapers across the state at www.biztimes.com/#news.